Can I get car finance on someone else’s behalf?

Everything you need to know about car finance for someone else...

  • Can I lease a car for someone else?
  • Can I get car finance for someone else if I don’t have a driving licence?
  • Can I get car finance for someone if I have a provisional licence?
  • If I don’t have a full driving licence what are my options for car finance?

There might be an occasion where you want to lease, or finance, a car for somebody else. Whether it be your child, your partner or someone else close to you. You could be wondering whether you can get car finance on someone else’s behalf.

Is it possible?

In this article, we look at whether you can get car finance on someone else’s behalf and the alternative options, depending on your own circumstances.

Can I lease a car for someone else?

In short, yes, you can lease a vehicle for someone else. In fact, this is something that many people do. However, it’s not always the most straightforward process.

The one thing that can cause difficulty is car insurance. When you lease a car, as the person on the finance documentation you also have to be the main policyholder. This is due to the fact that the person who has the financial interest in the vehicle (i.e. is making the monthly payments to the Finance House) has to be the main policyholder.

Person searching for car insurance on a laptop

While you can lease a car for somebody else, you will also have to be the main policyholder for the car insurance. Of course, just because you appear on the policy, this doesn’t mean that you have to be the main driver of the vehicle. You can nominate a main driver for the vehicle (the person you have leased the vehicle for), though you the policy must be in your name, you can remain on it as a named driver.

Changing the name of the main driver to the person on whose behalf you have leased the vehicle is a simple process. However, as with any legal documentation you need to ensure that you read everything before you sign it. Though it’s not difficult, the main driver/named driver issue can be a little confusing. You need to be aware that if you fill in the form incorrectly and errors are made, you can get into a lot of trouble.

HAVE QUESTIONS ABOUT CAR INSURANCE?

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Mazda3 SE-L Lux Hatchback

Can I get car finance for someone else if I don’t have a driving licence?

So, what happens if the person who will be driving the car can’t get approved for car finance due to a poor or low credit rating and you have a really good credit score, but no driving licence? Can you still lease a vehicle for someone with a driving licence if you don’t have one?

Unfortunately, due to the necessity for you as the lessee to provide us with your driving licence when processing your documents – as an anti-fraud mechanism – you need to have a valid driving licence to lease a vehicle or get any form of car finance. We have written a detailed article explaining what happens when your lease documents are being processed if you would like more information about what to expect.

Learner driver with instructor

It is possible that you will find a broker who will allow you to finance a car without a driving licence, but these will be specialist brokers. We strongly advise that you exercise caution when considering a broker who allows you to lease without a licence and it’s important you know that they are reputable.

As we mentioned previously, if you are on the finance paperwork for the vehicle you will also need to car insurance. Understandably, Finance Houses will likely be less than thrilled to have someone who doesn’t have a valid and full UK driving licence as the insurance policyholder for the car they are financing. Though you won’t be driving the car, this is a risk that the Finance House cannot take. There is no guarantee that you won’t drive the car so, for them, the risk is much greater.

Ultimately, this means that if you don’t have a driving licence you can’t finance a vehicle for someone else. The Finance House will consider the risk too great and your lack of a valid driving licence, needed for anti-fraud purposes during the documents process is also an issue.

Can I get car finance for someone if I have a provisional licence?

As a general rule, we say that if you have a provisional licence you can’t lease a car. However, there have been occasions when someone has been able to. Many funders won’t allow someone with a provisional licence to leas a car and, when it does happen, the process can be rather complicated.

Again, car insurance can be an issue. Though you can get insured on a car with a provisional licence, you are considered a higher risk. The Finance House probably won’t want to take that risk. Also, it will cost you a lot more due to the higher risk you present to the insurance company.

It is rare, but there are Finance Houses and brokers who will allow you to lease a car with a provisional licence, however, we would always recommend you check the company out to ensure they are trustworthy..If you would like to find out more about leasing a car with a provisional licence we have an article that will help you to find the answers you seek.

If I don’t have a full driving licence what are my options for car finance?

If you want to finance a car for someone else but you don’t have a full driving licence then there are alternatives you can look to.

If the person you are looking to help with their car finance is unable to get a lease themselves due to bad credit then one option you have is to become their Guarantor.

If you are a Guarantor then you are agreeing to take responsibility for the monthly payments of the car lease if the person who has taken out the finance agreement has, for whatever reason, failed to do so.

As with anything financial, there are certain criteria you need to meet if you are considering becoming a Guarantor, such as:

  • You must be at least 21 years old
  • You must have a good credit score
  • You can’t be financially linked to the person you will be a Guarantor for

Being a Guarantor is a great way to boost the chances of getting car finance. It is an alternative that is worth considering if you don’t have a valid driving licence and, therefore, don’t qualify to get car finance yourself.

In conclusion, you can get car finance on someone else’s behalf but you will have to be on the insurance as the policyholder. You don’t even have to drive the car, nor do you have to be the main driver. However, if you don’t have a valid UK driving licence, you cannot get finance for someone else. One way around this is by becoming a Guarantor for the person who is unable to get car finance.

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Rachel Richardson
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14 Comments

  • chelsea lyttle| 19th February 2020 at 4:20 am Reply

    Hi I am 17 years old and am learning to drive and therefore buy my own car, however I do have a part time job as well as college but it is minimum wage so it could take me ages to save up for a car. I would like to get the car on finance but as I am not 18 I cannot do this. I wondered whether the car could be put in my mums name and the money go out of her bank but me obviously put it in hers and I obviously pay the insurance, would this be possible? Thank you.

    • Rachel Richardson| 24th February 2020 at 8:57 am Reply

      Hi Chelsea,

      Thank you for your comment. This is a good question. If you would like to find out more about Guarantors and how they work we would recommend you get in touch. You can contact Amanda on 01903 223391 and she will be able to help you.

  • espn.com/activate| 12th December 2019 at 7:09 am Reply

    Thank you a bunch for sharing this with all of us you actually know what you’re talking about! Bookmarked.

    • Rachel Richardson| 12th December 2019 at 3:10 pm Reply

      Hi,

      Thank you for your feedback. We try and ensure that all our content is up to date and helpful to the readers who are looking for advice when considering buying, leasing or hiring a new vehicle.

  • Karen| 23rd June 2019 at 9:23 am Reply

    My daughter’s father is wanting to buy her first car on finance but he has no driving license can he still do so

    • Rachel Richardson| 24th June 2019 at 8:30 am Reply

      Hi Karen,
      There are ways that this can work, however he will need to speak to someone. If you get him to contact Amanda on 01903 223391 she will be able to help him to find the right finance arrangements and vehicle.

      If you would like any further information, please contact Amanda.

  • xe88.vn| 21st September 2018 at 9:30 am Reply

    It’s going to be finish of mine day, except before end I am reading this
    impressive post to improve my know-how.

  • Phil| 26th February 2018 at 4:55 pm Reply

    I’m financing a car in my name but i’m 25, if i was to insure in ny own name it would cost over 2 grand. Can i use my dads name and be the second driver? (Would cost £1,000)

    • Abbie Rawcliffe| 27th February 2018 at 12:11 pm Reply

      Due to FCA (Financial Conduct Authority) https://www.fca.org.uk/ having strict rules on advice we are not authorised to answer your question, however, you should speak to an independent Insurance Broker for further advice, such as https://www.aplan.co.uk/chichester mention our company name and they will look after you. However, can we help you with your next car? We might be able to find a car which you would love which would be cheaper to insure?

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