Can I take out car finance for someone else?

Car finance advice
Car finance and accommodation deals

“Can I take out car finance in my name if the car is for someone else?”  Asked by Bradley, December 2013.

“Is it possible to have more than one car finance agreement in my name? I have a PCP for my car and I want to start another one for my girlfriend’s car as she can’t get finance approved, but the dealer said I can’t do that.  If I can afford it, why not?” asks Bradley.

We have looked at different types of car finance before at The Car Expert, especially the most popular type of car finance agreement – the Personal Contract Purchase. But there is one assumption in any car finance application – that the person applying for car finance is the owner, keeper and main driver of the vehicle.

Bradley’s question is a common one when people are applying for car finance, and it causes considerable confusion.

If you are in the position of having a poor credit score or credit history and you can’t get car finance approval, it seems simple enough to ask someone else (usually a spouse/partner/parent/close friend) to take the finance in their name, while you promise to pay them for the monthly payments.

Car finance – the Accommodation Deal

The problem is that you generally can’t do it. Taking out car finance for someone else is known as an Accommodation Deal, and the finance companies simply won’t touch it, despite the concept not actually being illegal. So what exactly is the problem?

If you are unable to get finance, it is because the finance company has decided that you are too high a risk to loan money to. For whatever reason, be it failing to pay previous bills or not enough evidence of suitable income, the finance company has decided it does not believe that you can or will repay their loan.

So if they won’t lend to you, they are not going to lend money to someone else who is applying on your behalf, and who is expecting you to pay them for the loan. You are trying to circumvent your inability to get car finance by having someone else get it for you, and the finance companies are not stupid.

The logic is simple: the finance company does not expect you to be able to repay the loan to them, so they don’t expect you to be able to repay the same amount of money to another person. The person responsible for repaying the loan does not have possession of the vehicle (because you have it), which leaves the finance company at greater risk of not getting its money back and not getting the car back.

If you are declined car finance, then the finance company will not approve a similar application from anyone at the same address, or anyone they suspect trying to obtain finance on your behalf as an accommodation deal. Your credit score will be marked accordingly, which means other finance companies will almost certainly reject your finance application as well.

Don’t rely on what a car dealer tells you

Car dealers often don’t help matters by tacitly accepting and assisting with accommodation deal applications, rather than simply rejecting them outright, which also puts them in a dangerous position with the finance companies providing the loans.

The terms and conditions of the finance contract will be very clear regarding an accommodation deal, so even if a car salesman tells you that it’s fine, he will be able to deny it all later while you’re the one left in a big financial mess. If you complain to the finance company, he will swear blind that you lied to him and there’s no way he would have submitted your loan application if he knew the truth. And there will be nothing written down, so you can’t prove anything.

Don’t commit fraud so someone else can drive a new car!

Whilst the concept of an accommodation deal is not illegal, the concept of fraud most certainly is. Finance companies have become very sensitive to accommodation deal agreements in recent years, and they are on the lookout for any applications which may be considered such. Usually as part of the terms and conditions of your finance contract, you will have to declare that you will be the registered owner and keeper of the vehicle, and that you are the main driver.

If you are applying for finance on behalf of someone else, and you do not intend to be the primary user of the vehicle, you will be lying to the finance company and that is considered fraud. In such circumstances, both persons involved (the one able to get finance and the one applying for it on their behalf) would be committing fraud by attempting to deceive the finance company.

Taking car finance for someone else is an accommodation dealIf someone asks you to apply for car finance on their behalf, the correct answer is NO.  In addition to the legal issues surrounding an accommodation deal as outlined above, money issues tend to destroy friendships and relationships.

Disclaimer
Most car finance agreements in the UK are regulated by the Financial Conduct Authority, and anyone involved in the selling of car finance must be accredited by the FCA.

You should always consider the terms and conditions of any agreement carefully before taking out any form of car finance, as you are making a substantial ongoing commitment and there may be significant costs if you change your mind or are unable to meet your commitments at a later date.

Stuart Masson
Stuart is the Editor of The Car Expert, which he founded in 2011, and our new sister site The Van Expert. Originally from Australia, Stuart has had a passion for cars and the car industry for over thirty years. He spent a decade in automotive retail, and now works tirelessly to help car buyers by providing independent and impartial advice.

168 Comments

  1. Stuart Masson

    Hi Patricia. Not normally, as far as I am aware. Have a look through your lease contract, but usually it requires you to remain the keeper and main driver for the duration of the lease. You are probably allowed to list her the insurance as a named driver and lend her the vehicle from time to time, but the finance company is unlikely to allow you to simply offload the car to her.

  2. Hi. I am wondering if someone can tell me, we have recently applied for finance on a car and the car company put through the finance in my husbands name as he did most of the talking, which has been declined, even though the car was for myself and I would be the main driver as we did not think this would have been an issue at the time. We are now been told this is an accomodation loan if we apply in my name which in fact the first application was the accomodation. How long do I now have to wait until I can apply for the credit in my name now?

  3. Stuart Masson

    Hi Sally. You could try calling the finance company directly to explain the situation, but they may still decline an application in the belief that it would be an accommodation deal. You would probably have to formally complain that the dealer did not advise you of the implications of having the application in your husband’s name. The problem is still going to be that with one decline in the household already, they are still going to be reluctant to finance you. You may have better luck with a different finance company, which may of course mean a different brand of vehicle.

  4. Hi Stuart, I need some advice on me financing a car for a friend. What would be the risks of doing this? If I “donate” the car to someone else once it is fully paid, would there be any consequences? What if they get on an accident and they find out i’m not the driver of the car? He is not a legal citizen but his dad is so the title will go under his name once it’s paid. He is willing to pay more than half of the car for down payment but asks for the rest to be paid in a year and a half. Assuming that this will go good, how would this work in terms of the title, my credit, and the insurance?

  5. Stuart Masson

    Hi Vicky. Once the car is fully paid (on a PCP or HP), you can do what you like with it because it will officially be your car. Up until that point, it belongs to the finance company and you are bound by their rules.

    By the sound of it, you would be better off getting a personal loan for the amount needed. That way, the finance is not secured against the car and you can donate/loan/sell it to your friend on whatever terms you like. The finance in your name would be up to you to manage, so if you stop paying the bank will come after you rather than your car.

  6. Hi Stuart, sorry if you have already covered this but me and my girlfriend are in need of some advice.
    We want to buy a car on finance however my girlfriends credit rating is bad so she has been rejected to be the named person on the finance. I am able to be the named person however she will be the main driver and the car will be kept at her house, I will be insured on the car as I will use from time to time but overall she will be primary user and keeper. Does this come under the Accommodation Fraud even though i will be using the car? Thanks for any advice!

  7. Stuart Masson

    Hi Jon. Yes, this would be considered an accommodation deal, as you will not be the main driver and the vehicle will not be kept at your address. Basically, you are trying to do exactly what the finance company is trying to prevent you from doing.

  8. Hello quick question. I’m 23 and a beginning insurance agent. I understand the insurance aspect of this but I’m curious about the financing aspect. I live with my grandmother as I am her caretaker, and I’ve lived with her for many, many years. We are considering trading my car (which she purchased for me when I graduated high school and is now paid off) and her car which is also paid off in for a mutual vehicle. Since we would both be drivers and we both are members of the same household I don’t think this would classify as an accommodation loan. But my question is there a way she can finance and pay the vehicle but somehow put my name attached to it so it will improve my credit as well? I was a tad irresponsible with credit cards shortly after graduating high school and in turn made me have a less than desirable credit score. Also I recently acquired my insurance license and I’m training at a insurance agency so I don’t have any income history at the moment. She fully intends to pay the payments and insurance as I’m covered as an additional driver. But is there any way for my credit to be improved as well? Could she be my co signer?

  9. Hi Stuart,

    So, I have been the primary driver and owner of my vehicle for over three years now. However, I am moving to NYC and will no longer be in need of the vehicle. My sister is in need of the vehicle but cannot get financing because of adverse credit. I will still be making the payments on the vehicle myself and will be the registered owner, she will be the primary driver and the insurance will include the both of us. Is this along the lines of the accommodation deal?

  10. Stuart Masson

    Hi Thomas. Some finance companies may allow you to apply for car finance with your grandmother as a guarantor, but if you have a poor credit score then this may not be allowed. Also, many finance companies these days only allow guarantors for young drivers with no credit history, rather than poor credit history.

  11. Stuart Masson

    Hi James. This would almost certainly be regarded as an accommodation deal, even though you have had the car for three years.

  12. Hi Stuart.

    My wife is thinking of getting a car on a PCP or HP. I want to know if I will be able to insure myself on the car and drive it?

  13. Stuart Masson

    Hi Bash. If your wife is taking out the finance, she needs to be the main driver and registered keeper, and the insurance policy must be in her name You can be listed as a named driver on the insurance and you are allowed to drive the vehicle (with her permission, obviously) but she has to remain the main driver.

  14. Last year we bought a car for our daughter as she was starting a year in industry as part of her degree and needed to commute. The dealer knew that my husband would be responsible for the finance but the car was to be our daughter’s and the V5 to be in her name. The car is insured with my daughter as the main driver and myself as a named additional driver and paid for from my husband and my joint account.

    After everything had been processed we received the V5 in my husband’s name. At first we didn’t bother doing anything about it. A year later and looking at the insurance for the coming year my daughter was told that the car should be in her name as registered keeper. The relevant paperwork was done and a new V5 sent to our daughter. Hyundai Finance have now sent a letter requesting the balance of the finance be paid of immediately as they deem that we have sold the car on.

    All we wanted to do was buy our daughter a new car so she would be safe commuting 80 miles a day. We were going to be responsible for all payments and have our daughter properly insured as the main driver. It seems that there is no way to do this with the finance company and the insurance company wanting to apply opposing conditions. We can’t be the only parents wanting to buy a car for their child on finance without ‘fronting’ the insurance or making an accommodation deal.

    How should we have set this up to keep everyone happy?

  15. Stuart Masson

    Hi Heather. You would need to have set it up with the car in your husband’s name, with your daughter listed as a named driver. The dealer should have advised that you couldn’t have the finance in your husband’s name and the V5C in your daughter’s name.

    Alternatively take out a personal loan, as that is not secured against the vehicle and therefore there are no conditions about whose name the car needs to be in.

  16. Thank you for the quick reply. The problem we would have with your scenario is that my daughter is the main driver so putting the insurance in my husband’s name with my daughter as a named driver is an example of ‘fronting’ or have I got that wrong?

  17. Hi Stuart.
    Bit of a different question for you, I have a car on finance. Since I left the dealership I have had nothing but problems, every 1-3 months (at least ) for the last two years I have had to pay out for this car!. The dealership even had it back to rectify the problems we had at first even tho it was outside warranty.
    The situation I’m in now is the finance company don’t care I was sold what has basically turned out to be bits of metal fused onto wheels!, and it has failed MOT and I’m still having to pay finance for a car I can no longer drive as I can’t afford repairs and also..( because of current finance) I cant afford another car. Can’t take out a loan to pay off the finance and purchase another car either.
    I’m tempted to take the dealership and the finance company to court, as the finance company has allowed this man to sell finance on a car that was simply not road worthy. May I just add that the cars repairs were done by the mechanic at the dealership.
    Many thanks for any advice you have.

  18. Stuart Masson

    You will need to check with the insurance companies – some will allow it, but others won’t.

  19. Stuart Masson

    Hi Amy. It’s difficult to argue that the car was not roadworthy at point of sale two years later. Although you have had several problems with the car, you have still presumably been driving it until it failed its MOT. To prove that the MOT failure issues were present when you bought the car will be difficult, as the dealer will be able to argue that they have been caused in the last two years of you driving the car. It’s a difficult case to win, regardless of how badly you may have been treated.

  20. Hi two years ago my husband bought me a new car suzuki under finance his paying this monthly and i am the owner, then now we decided to trade the new car renault and we are in negative equity due to this, then we sell the my suzuki to Renault company and they sort out my finance to suzuki. But the salesman wont let me to have may name again as the owner of the new car Renault due to my husband is paying this? My husband doesn’t know how to drive and brought this remault car for for a gift, is it possible again to reguster the renault under my namr and he is financial.. Hope u can answer me

  21. Stuart Masson

    Hi Anna. As the article explains, most finance companies will no longer allow this, and I’m surprised Suzuki allowed it in the first place. If your husband does not have a driving licence, it will be difficult for him to get car finance.

  22. Hi Stuart,
    looking for much the same info. my son is looking to buy a car, he only has a provisional licence. he wants to use it to learn to drive, but in the meantime i can use it. he stays in the family home.
    i would be the main driver, im not sure he is even interested in being on the insurance to begin with as he is looking to go travelling. payments will continue to be made from his account.
    i will be trading my vehicle to become the deposit. any information would be appreciated

  23. Stuart Masson

    If you’re looking for much the same info, then the answer will be much the same. You can’t do it.

  24. Hi stuart

    I have taken a volkswagen golf on my name on pcp finance. car is registered in my name i have a motortrade policy in my limited company name and i am a driver on the policy aswell as my friend. it is a fully comp policy is this a breach

  25. Stuart Masson

    Hi Shane. You will need to check with the finance company to see if that arrangement is acceptable to them. If the company is your company, they may be OK with it.

  26. Hi there I want to take a car out for my daughter, she has never applied for a car, but I want to do this for her to secure her a good car as her car is not a good one. Can I apply for finance for her? she will make payments from her account and the v5 will be in her name can this be done . We live at the same address and I know she can and will pay.

  27. Stuart Masson

    Hi Stassy. No you can’t. If you take out finance from the dealership, the car needs to be registered in your name, with the insurance policy in your name. Some finance companies may allow her to take out finance with you as a guarantor, but you can’t take out secured car finance (like a PCP or HP) for a car in her name.

    The alternative is to take out unsecured finance, like a personal loan. You can then give the money to your daughter to go and buy a car and she can repay you.

  28. Hi Stuart, my daughter took out financing for her husband who was down as the owner of the lease car with Mercedes. No-one said they couldn’t do this. They have now split up acrimoniously and he wants to keep the car but says he can’t afford the finance. What can we do?

  29. Stuart Masson

    Hi Janis. Your daughter and son-in-law will need to work out some arrangement or terminate the lease (which will involve financial penalties). As your daughter has the finance in her name, she will need to be the owner and keeper of the car. Married couples are usually looked upon kindly by finance companies when it comes to finance/insurance/registration, but if they have now split up then they are likely to want her to take responsibility for the car.

  30. Hi Stuart,

    I went to finance a car myself but as a student and part-time worker I got declined. The dealer then took details from my dad (who has good credit and has previously financed) to try it in his name but with myself as the registered owner and main driver of the car. Me and my dad both live at the same address and would be on the insurance. What do you think the chances of being accepted are?

    Kind regards,
    Grant

  31. Stuart Masson

    Hi Grant. If the dealer submits the finance application in your father’s name with the vehicle contract in your name, the finance company should decline it as an accommodation deal. Even if it gets approved, there is still the risk that they will work it out down the track and move to cancel the contract.

  32. Hi Stuart,

    would my dad be able to lease a car, be the registered owner and a named driver and I be the main driver?

  33. Stuart Masson

    Hi Lauren. The rules for leasing are different to purchasing, as you are simply renting the car from the finance company. The registered owner and keeper remains the finance company in most leasing agreements. You will need to check the lease paperwork or ask the finance company directly, but usually they will want the person taking out the lease to be the main driver.

  34. Advice re how I stand with PCP agreement for husbands car. My husband has just died. Been told have to pay to buy car over £15,000 or pay £1700 to have paid the 50% of value of car back. Am I liable for this when the car was my husbands and not mine?
    Can I refuse to pay and just give the car back?

  35. Hi,

    I’m looking for some advice here… I got rejected finance a few years back (even though I had in excess of £1000 spare) so my mother in law took out the finance for me. I am no longer with my partner now and things have become so difficult and tense that I am no deciding to give the car back to them. I am not the registered keeper, i literally have insurance tied to the vehicle and that’s it. How would this work with me giving the car back to them and stop paying the direct debit to her? Will it involve court for me or can i just hand back the keys and say bye? Are there any legal matters here if they turn nasty and go down that route?

    Thankyou, I look forward to your response

  36. Stuart Masson

    Hi Jason. The moral way to deal with the problem is to agree a plan with your mother-in-law to sell the vehicle and settle the finance, and you pay her whatever you end up owing her (if anything).

    From a legal perspective, responsibility for the car and the finance agreement lie with your mother-in-law, so you could give the car back to her and let her sort things out with the finance company. There are no other legal matters from what you have described, but it is highly likely to turn nasty in terms of your relationship with your mother-in-law…

  37. Hi Stuart,

    I really need some advice please. I got out a car loan for my partner a year ago and he is insured on the car and registered keeper. This car actually set on fire the other week because when they were servicing his car, they didn’t put the oil cap back on. The insurance are paying out 6700 and the settlement figure for the loan is 7000 so no problem there however, they are asking for the financial agreement on the car and obviously it is in my name so is this a problem? I’m wondering if the insurance company have an obligation to pay the finance company or can my partner just give them his bank details as they have asked for this as well and not say anything about the finance and then when the money goes into his bank we pay the loan that way? Please help

  38. Stuart Masson

    Hi Sophie. If the finance company has an interest in the car, the insurer will probably pay the finance company. As part of your insurance policy, you would have to have declared that the car was under finance.

    The insurance company will obviously be checking their records to make sure you are not trying to claim a payout for a car you don’t own. I don’t know whether it will be an issue for them that the finance is in your name but the insurance is in your partner’s name. If they are satisfied that you are not trying to commit insurance fraud, they may well be happy to pay out.

  39. Hi Stuart,

    i cant get credit due to bad credit in my early years, my wife has managed to get credit on a vehicle it is due to arrive in March but she only has a provisional licence also it is me who will be driving the car.

    will this be ok ?

    many thanks John

  40. Stuart Masson

    Hi John. This is the sort of thing that finance companies are trying to avoid. It is true that married couples are looked at much more leniently (especially if you have joint accounts), but most finance companies would not be happy if you declared up-front that she was financing the car for your use.

  41. Hi stuart
    My ex took out the car on finance from day one the car was put into my name .
    I have paid every payment we split shortly after
    I have paid out now for 3 years of a 5 year contract
    Only leaving 2500 of 7500 to pay .
    She now has declared bankruptcy and the car is to be given back .have i any comeback for all the money i paid or anyway to stop this as i am the registered keeper .
    Thankyou mark

  42. Stuart Masson

    Hi Mark. Being the registered keeper doesn’t give you any ownership rights – the car belongs to the finance company until the entirety of the loan is paid off. If she stops paying, the finance company is entitled to their car back.

  43. Hi Stuart, I wonder if you could please advise on the following situation.

    My wife currently has an Audi financed with a VW Finance PCP. The car was purchased in 2013. Because my wife is a non-earning housewife, the Audi dealer registered the car in her name, but provided the finance in mine. Based on all of the above, it sounds like this would now be frowned upon.

    We are ready to change her car and want to go for a VW, again on a PCP. What acceptable options do we have? I don’t want to risk our household credit rating by having an application by her rejected because she has no personal income. But we would like to have the new car insured in her name so that she can continue to maintain NCD. Is it possible for me to be the registered keeper, yet for her to be the main insured driver? She would be using the car more than 50% of the time.

    Also, do you envisage any problems when we look to dispose of the Audi and settle the outstanding finance? We expect to use Webuyanycar for this and wondered if different names on the V5 and finance contract will create a problem?

    Thank you for your advice.

  44. Stuart Masson

    The Audi dealer should have been rapped over the knuckles by the finance company for that, although the finance companies are traditionally more relaxed about married couples than other accommodation deals.

    Really, you should be financing and insuring the car in your name, with your wife listed as a named driver.

    There shouldn’t be any problem with Webuyanycar; they will need the settlement details from Audi Finance so it can be paid, but as long as you can produce the correct paperwork they are unlikely to care.

  45. Hello Stuart,

    I wonder if you could give any advise on a very complicated situation. At least at seems so to me. Apologies in advance for a very long text, but I sincerely hope for any sort of advise.

    In 2013 my husband very foolishly took a finance in his name for his so called friend (whom he only knew for a couple of years). They did it in Mercedes garage with Mercedes finance and my husband had no idea it was accommodation deal. He told everything to the Mercedes guy who was doing the deal. That he will be getting finance in his name as his friend has no UK driving licence yet, but that as soon as he gets the licence they will be back to change the name over. Mercedes guy said “no problem”. Friend got a licence later, Mercedes refused to sign over a car saying the car had to be sold first. So friend continued to pay for finance to my husbands account for about 3 years. Then he stopped paying. My husband asked for the car back, friend became very abusive but in a spur of a moment gave back the key and my husband drove off with a car.

    The following morning the car was gone from under our property. Husband called friend who confirmed he had car but that he will not be giving it back. Husband went to his address to get it back and got in a fight. I heard itas I was on a phone with him and called 999.

    When police arrived husband told them everything and said that the car was stolen by his friend but police said it was a civil matter and did nothing. After police left “friend” made very big threats to my husband promising to harm our family if he ever tries to take the car again. Seeing that the “friend” became affiliated with drug dealers, hubby had no choice but to put things on hold.

    Husband continued paying the finance and receiving PCN penalties for the vehicle as he was always the registered keeper. After we received several untaxed vehicle penalties, I wrote to DVLA to explain that my husband is not a keeper of a vehicle and was him but he is the owner. I said that we cannot put a different person’s name on V5 as that would enable that person to sell the car. DVLA didnt reply. After another penalty which came with a some DVLA form, husband filled out the form that he was not a registered keeper and never had possession of the vehicle, he is just an owner.

    We had no idea that this would make DVLA take husband’s name off V5. Of which we only found out a week ago. The friend had dissapeared with a car and we heard nothing from him continue to pay for finance and not being sure what to do, as we had no insurance on the car and were scared to go to the police again as they did nothing last time, but we thought they did make a note that we reported it stolen.

    A week ago husband got a call from Mercedes, saying that some car garage contacted them saying that he has the car and wants to be paid £2,000 for the storage costs as somebody dropped off the car to him and never returned. Garage owner also made a V5 certificate into his garage name, so his garage is now registered keeper. Husband called police, they refused to do anything. DVLA the same. So he reluctantly agreed to pay £2,000 to get the car back to return to Mercedes, but the garage owner then said that he now wants £4,600 !!!

    There is no way we can afford that amount, together with outstanding £3000 that we still would have to pay to Mercedes after we give the car back. Without the car we owe £9,000.

    Husband told Mercedes that the car was stolen long time ago and they do have it on record. But also refuse to do anything. We are desperate for advice as have no idea what to do now. We cannot declare it stolen as police refuse to listen. Mercedes just want their money back and DVLA says they did everything right and we now need to get legal advice.

    What would be the consequences if we stop paying to Mercedes? Do we have any right to do that since they knew they were doing accommodation deal and still went ahead? They say that the person who did our deal no longer works for them. Can we ask that police register car as stolen at that date when I first called them and my husband reported everything? I feel that they failed to do that and wrongly dismissed it as civil matter when the vehicle was actually stolen from under our property.

    Please,what are our options? I would appreciate any advice. Going to Citizen advice is not really an option as they take ages and the garage owner already said he will sue us in 150 days anyway we will have to pay him. From other sources we heard he might be entitled to dispose of a vehicle as he pleases after a certain amount of time. I would not be surprised if this garage owner knows our “friend” and simply bought off a vehicle off him cheaply to get money from us now.

    Thank you very much for any advice you can give and for your patience reading through all of this.

  46. Stuart Masson

    Hi Natalie. Unfortunately, your husband signed a legally-binding agreement to buy and finance a car. The salesman (if he could ever be tracked down) would swear on a stack of bibles that he certainly wouldn’t have advised that an accommodation deal is acceptable. In the finance agreement, there should have been a clause which says that the person financing the car must be the same person buying the car, listed as the registered keeper and the main driver of the car. Ultimately the car belongs to the finance company until the debt has been repaid in full. Your ‘friend’ appears to know exactly what he was doing, and the real surprise is that he continued making payments for three years before stopping.

    Mercedes-Benz Finance is correct in saying that the car and finance agreement can’t be signed over to another person midway through the term – the agreement must be settled (ie – paid back in full) before your husband is discharged from his financial obligations to the finance company. If you simply stop paying the finance company, they will be chasing your husband, not whoever has the car now (ultimately they won’t care who has the car if they get their money back)

    The situation has spiralled into rather a mess, and I suggest that you and your husband seek professional legal advice to work out how best to proceed. A solicitor will be able to help you work out which invoices and demands are legitimate and which are not. A solicitor should also be able to help in terms of making sure the car is reported as stolen, although this is not necessarily that simple. If your husband gave his ‘friend’ the car keys, insurance companies will often refuse to accept the vehicle is stolen. Your husband also wrote to the DVLA advising that the ‘friend’ was the registered keeper, which again makes it almost impossible for the car to be considered stolen. I’m afraid you have dug yourselves into rather a deep hole, but hopefully some professional legal assistance will help you at least recover some of your losses or prevent any further ones.

  47. Thank you, Stuart. Unfortunately it is a very messy situation. We tried few solicitors and they dont want to take this case on. Do you know what are our best chances of getting the car back from that garage? If we stop paying to Mercedes will they take the car from the garage as they know where it is? Or if we pay all £9,000 to Mercedes will we have more chance of getting the car from the garage as now we will be owners? Does he have any legal right of charging us whatever he wishes? Many thanks for your time and advise

  48. On the second thought, garage being registered keeper wouldnt he have to give the car back to the owner on demand? and if he doesnt give the car back to owner within say a week or two of us writing an official letter him asking for the car back, it should be considered theft? thank you very much for any insight on this situation

  49. Stuart Masson

    The finance company will only be interested in dealing with your husband. If he stops paying, they will bring action against him for either the money outstanding or the car. If he can’t produce the car, they will simply push for the money and may bring additional action for breach of contract or fraud. They will have zero interest in pursuing third parties like your husband’s friend or the other car dealer.

    The other car dealer cannot sell the car with finance owing on it, and should not have bought it from your friend (if that is what has happened). They cannot charge you for storage since you never gave them permission to store the vehicle, although they can certainly try – it’s all a matter of negotiation.

    I would imagine that the reason that the solicitors you have spoken to do not want to take on your case is that the chances of you winning are minute.

  50. Hi Stuart, thank you very much for your advise. We have managed to report car stolen as of this Sunday but were not successful getting the car back with the police as they said at the time the garage owner obtained V5 it was not reported stolen. So our only recourse is court. But police themselves said that by the time the court reaches conclusion we might not get anything left of our car. It looks like we have to pay and then take them to court. Why do you think that our chances of winning are slim? Puzzled because you say we shouldn’t be charged and police said the same. Would that give us quite high chances of winning? or are there other aspects involved? many thanks

  51. Stuart Masson

    I think your chances are slim because you gave the keys of the car to someone else and declared to the DVLA that you are not the keeper. It’s hard to claim something was stolen when you deny ever having it.

  52. Andrewtaylor, why don’t you take the ( u don’t work so have plenty of free time attitude.) And shove it where the sun dont shine. I am registered unemployed due to mental health disability. I can assure you that you can achieve more in the time you have getting home from work before bed than I could this week. It’s people like you who judge others that makes the world we live in so appalling. He hasn’t mentioned anything about his disability yet you are quick to attack him. Over compensating are you little man. For the record I agree with his basic point. The cars insured taxed mot’d and the finance is being payed so what’s the issue. I’m current ly considering finance. However I can get accepted in my name. But as my partner is my carer and would be the main driver she would be the main driver on the vehicles insurance but due to this accommodation deal bullshit the finance company won’t accept that. Here’s the funny bit. We share our income and both incomes where calculated during the application. But due to credit score only I was accepted, so now I should go without because they won’t accept her being the main driver even though she’s my carer 24/7. I bet it’s people like Andrewtylor running finance companies. You know, with they’re eyes and ears full of shit and a head full of sawdust with their hands in they’re trousers making sure they still have manhood. Well after your little attack on a disabled without any remorse I’m guessing you lost your manhood a longtime ago. Hence why you needed to take the time to wright that comment. Sorry if I miss spellt Andrew please don’t attack me with haha your even illiterate. Hahahaha your a joke mate.

  53. Hello i was wondering if i am doing something wrong if i want to take out a finance for a car and get my son a car , he will be the main driver etc is there something wtong in doing that?

  54. Stuart Masson

    Hi Adrian. No, you can’t take out finance for a car for someone else.

    If it is a car for all the family to use, that would be OK. But if he is the main driver and no-one else is genuinely using the car on a regular basis, you run the risk of it being considered an accommodation deal.

  55. Hi Stuart, I’m in the same position as your partner I was also Co erced into this, well now he’s not making the repayments and I’m screwed, I don’t have the car and I can’t make the repayments. It’s a very costly mistake to make

  56. Hi Stuart,

    I am getting a car on finance for my daughter, she will be using the car. Is this ok to do. I will pay the monthly instalments and she will be the main driver?
    Thanks

    Carlos

  57. Stuart Masson

    Hi Carlos. No, you can’t. That is the whole point of this article.

  58. Please help, I never realised that having my car logbook and insurance in my name and the pcp finance in my mothers name was fraud. We only did what the mini car salesman advised. I’m shocked to find out otherwise, as I only have 2 payments left to make before handing it back. What shall I do, is it still worth changing the logbook & insurance over or do I just play dumb.

  59. Stuart Masson

    Hi Angela. If you have had the car for this long, you’re not likely to have any problems at the end of the agreement. But you will probably find that you won’t be able to do the same thing next time (and you shouldn’t be anyway, even if it is offered).

  60. Thanks for your quick reply. So there’s no need to change the logbook or anything else because we do live at different addresses?

  61. Stuart, I both love and hate this article at the same time. Allow me to explain.
    I have an eye condition called Nystagmus and it is so bad that I simply cannot get a driver’s license myself. My girlfriend does not have the capital or salary to be able to pay for car finance and so in our living arrangement I want to bear the costs since I can afford it. In our situation traveling to work and back I work 70 km from home and she almost as far. Basically the solution to save us time and energy would be for her to get a vehicle. She does not have “bad credit” but she does not have “good credit” either. Now I went to the bank to ask about car finance. There were 2 options
    1) Get hitched – we do not want to get married right now and for this reason.
    2) Parents stand in – we do not have parents that are capable of doing so.
    Is there any way possible outside this scope that we could consider?

  62. Stuart Masson

    You could get a personal loan, which is not secured to the car. Then you can do whatever you like with the money, such as buy a car for your girlfriend’s use. If you spoke to a bank, I’m surprised they didn’t suggest that.

  63. Hey Stu. Please help what’s the right procedure that i have to follow before i could ask someone to use his name to buy me a car ?Because right now i’m confused because i’m the one who has deposit for that car and i’m the one who will be responsible for payment ,so what if he/she pass away ?

  64. Hi Stuart, I am thinking about doing a loan for someone else but I am not looking for them to pay me installments. I plan to wiling cover the cost of the loan as long as they do not ask me for anything else. This is my ex husband, what are your thoughts on that? Thanks

  65. Stuart Masson

    Hi Nadene. It’s still an accommodation deal if you are financing a car for someone else, so most car finance companies won’t allow it. The person taking out the finance is expected to be the registered keeper, named as the owner on the insurance and the main driver. The car is also generally required to be kept at your address. The problem from the finance company’s point of view is that if you stop paying them back, they have no way of recovering the vehicle.

    You can always take out a personal loan, and that way you can spend the money however you like as it’s not secured to the car.

  66. Slightly confused – if I am not the driver but am fully intending to pay all the payments myself is it still accomodation for me to pay for my wife’s car? I do have a provisional licence, but registering the new car under my name means insurance under my name would be preclusively expensive and we would be stuck with having to sell her old car rather than being able to part exchange as it is registered to her.
    In that scenario – she pays the insurance which she can afford, I pay the lease which I can – there is no dishonesty or intent of deceit at all, we are just managing our finances to maximise our individual credit ratings in addition to as a couple. Is this still not allowed by leasing companies, as it feels very unfair if it is!

  67. Sorry finally got through all the other comments – apologies for repeating what you have already answered. It seems it is just unfair to the honest unfortunately, such is the way of the world today! If a dealer refuses lease will they still accept personal loan for “cash” purchase (guessing not through their own finance as same situation) – seems that you end up paying more anyway that way because deals on outright purchase aren’t nearly as good!

  68. Stuart Masson

    Hi Andy. If you are married, finance companies do tend to be more lenient as they assume that you manage your finances jointly anyway.

    The best way to manage it is usually to have the money coming from a joint account, which means that it doesn’t matter whose name the car is in because both your names are on the bank account. The part-exchange vehicle shouldn’t be an issue, as the finance company isn’t usually concerned who the registered keeper of that vehicle is (unless they are suspicious that it is a genuine accommodation deal, in which case it’s further evidence for their investigations).

    There’s no guarantee that any application will be approved or rejected if there is concern about it being an accommodation deal. What the finance companies are trying to avoid is unconnected people financing cars they will never see or drive.

What are your thoughts? Let us know below.

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