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Car finance advice

Can I take out car finance for someone else?

The Car Expert explains the Accommodation Deal and why finance companies don't like it.

“Can I take out car finance in my name if the car is for someone else?”  

It’s a question we get asked a lot, like this example from Bradley. “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?”

We spend a lot of time looking at every aspect of car finance here at The Car Expert. 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.

If you have a poor credit score or credit history and you can’t get car finance approval, it may seem simple enough to ask someone else (usually a spouse or partner or parent or close friend) to take the finance in their name, while you promise to pay them for the monthly payments so they’re not out of pocket.

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?

Lending to someone else on your behalf

If you are unable to get finance, it is because the finance company has decided that you are too high a risk for them 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 its loan.

So if the finance company won’t lend to you, it’s 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.

Accommodation deal empty wallet
This is how the finance company assumes an accommodation deal will turn out

An accommodation deal is considered too risky

The logic is simple: the finance company does not expect you to be able to repay the loan, so it doesn’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 probably not approve a similar application from anyone at the same address. They will also not approve anyone else they suspect trying to be applying for 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. This 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, the salesman 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.

Car salesman in a showroom
Don’t take this guy’s word for it.

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 these arrangements.

Usually, as part of the terms and conditions of your finance contract, you are declaring that you will be the registered owner and keeper of the vehicle, and that you will be 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 unable to get finance and the one applying for it on their behalf) would be committing fraud by attempting to deceive the finance company.

If 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.


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. There may be significant costs if you change your mind or are unable to meet your commitments at a later date.

The original version of this article was written in January 2014 and has been regularly updated and improved. Last updated March 2021.

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Stuart Massonhttps://www.thecarexpert.co.uk/
Stuart is the Editorial Director of our suite of sites: The Car Expert, The Van Expert and The Truck Expert. Originally from Australia, Stuart has had a passion for cars and the automotive 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.


  1. Hello Stuart. I have a car in finance and I’m going to buy a newer car with cash. I don’t want to pay two types of insurance so I will transfer my current insurance to the car I have purchased. Can my girlfriend insure the old car on herself and drive it until the end of financing?

  2. Hi Stuart,

    My now ex girlfriend needed a car for her new job was currently unemployed and couldn’t get finance so we agreed I’d put it in my name and she pays it off monthly, we are now separated and she has the car unknown of where she has moved but the finance is in my name. Is there any advise or anyone I could contact to help me one make sure she keeps paying or find the whereabouts of the car?

  3. Hi I had a man turn up at my front door today to repossess a car . The car belongs to my ex boyfriend and he had never lived with me at my current address . Please could you tell me how this is possible for them to find where I live .


  4. Hi Stuart,

    I took a personal loan (unsecured) to buy a car.
    Can my husband be a main driver for this car and myself the named one even though I’m the car owner?
    He has a car insurance bonus from abroad and I don’t have, so hopefully insurance would be bit more affordable – but the main reason is honesty: he would indeed drive this car more often than I am going to.

    Thank you for your help!

    • Hi Kris. With a personal loan, you can do whatever you like with the car. If your husband is going to be the main driver of the car, then you should set up your insurance that way – the ownership situation shouldn’t matter to the insurance company.

  5. Hello stuart,

    I’ve taken a car out on pcp, the finance agreement is in my name but the car is registered in my ex wife’s name. I still have 2 years(2023) until I reach the 50% value of the car.
    Can you tell me, am I able to cancel the agreement when I reach that point?.
    Other scenario is, can I pay a lump sum now and voluntarily terminate the agreement?.
    Do I have to notify my ex wife and the dvla beforehand regardless is she agrees/disagrees to it.


  6. Hi Stuart, for the last 5 years I myself had run a HP with Volkswagen financial services all with no issues in my own name. However in September I wanted to upgrade to a better Volkswagen car but to get this particular model from new the only option was to go through a third party finance house as they had purchased all of these particular models from VW. I initially got declined for some unknown reason, and would have to appeal the decision that could take some time. The vehicle I wanted was about to move into a new generation which meant the vehicle I wanted from new could potentially sell out. So having spoke with my mother who also wanted a new car she decided she could take the finance for this new car I wanted and I could drive it along with her. We did this and all got approved and the car was delivered. However 3 months later we’ve had the finance company and the dealership that delivered the car calling us threatening to take the car. We’ve read their terms and conditions carefully and can see no breach from our side and have told the finance company to politely write to us expressing their rights to repossess. The insurance policy has my mother as the registered keeper and the finance company as the owner and we are both on the policy to drive the vehicle, both at the same address and the payments for the car leave our joint account. The finance company dispute this and claim because I had a decline and my mother was accepted that this is an ‘accommodation deal’ and goes against their terms. However it isn’t but they keep calling saying they will be taking the vehicle. It really is a nightmare situation and we would have expected them to decline my mother at the very start before trying to revoke the agreement 3 months in and potentially leave us with thousands of pounds worth of debt for the negative equity the car will likely now have. They have been very unprofessional about this and their terms state for cancellation by themselves we should receive one months written notice but all we’re getting is threatening phone calls. I have complained both to the lease broker and the finance company and have also contacted the financial ombudsman service. As we are now having to worry that the finance company will try to unlawfully remove the vehicle without any notice or our consent which we’ve read many finance companies will do when it comes to repossessions. Any advice on this?

    • This sounds like a textbook definition of an accommodation deal:
      1) You were declined for car finance, so…
      2) Your mother – living at the same address – bought the same car on the finance deal you were declined for, named you as a driver and the finance is paid from a joint account that you pay into.
      And now you’re upset that the finance company has called you out on it?

  7. Hi,

    Last year I took out finance on a provisional license, with the hopes my child’s father would help me pass my test, as he has had his license and didn’t have a car he was insured in the car and would be driving it when I was not learning. The car and paperwork(v5) was delivered to his address, as I was living with him at the time and (Without my consent) he put the car in his name (v5). It took me a while to pass my test due to financial struggle and he would pay me the money for the car monthly as he was the main driver. I have since passed my test and want to drive my car and we have unfortunately had a bad breakup and he is being difficult and has even stopped paying the money for the car and refuses to give it back to me. Along with the stresses of the times we are in this is a massive burden on me and our young child and I don’t know what to do or who to turn to. I would be grateful for any advice.

  8. Hi Stuart.

    I need a little advice, i took out a car on finance(with a provisional) for a cousin as gift. The broker was aware of the situation and said this was fine. So the finance was in my name, on my address.

    The vehicle has been driven by my cousin on another insurance. The vehicle was seized by the police for no insurance, however, when we went to produce the papers to police showing the car had a insurance it had already been retrieved by the finance company.

    I rang them up to log a complaint as I wanted the car back, they advised me the vehicle would be sold and i would need to pay the remainder of the finance. I then logged a full complaint with proof that i had not got a full uk license so how could I possibly been driving the car never mind insured, as well as email from the broker to me with details of the agreement which was false as it stated the car was an upgrade. How when i cant drive? Also it was being used for commuting to work.

    After the finance company investigated they came to the conclusion i was mis sold the vehicle and the car was worth £2700.00 which was too much for a provisional anyway.

    They advised when the lender put the finance through they only sent the passport and not the provisional so they were not aware. The we’re happy to end the agreement, return all monthly’s which i have paid so far and take it off my credit file.

    They are now saying the broker wants damages for the car a few scratches and mileage for the car and at this point are not willing to return my money after they wrote in a final response they would refund in 10 working days.

    Do you think it is worth going to the financial Ombudsman Service.



  9. Hi Stuart

    My Ex partner (we were separated and living a different addresses at the time of taking out the agreement and the finance company knew this – they sent documents to my home address V5 etc) took out finance in her name for me, the Garage (also the ones providing the finance), they have put me down as the registered keeper and they even send the monthly codes for the immobiliser to my mobile. I am no longer able to afford the repayments due to a drop in income (I am self-employed). The agreement is for 4 years and it was signed in April 2018, I was under the impression that I could hand back the car at any point as it was under the drive-pay scheme (I did this previously with the same Garage). Having spoken to the Garage, they have informed me that this is no longer the case and that I have to pay 50% of the outstanding balance. Can you advise me of my rights, i.e. are the Garage in breach of any law/rule as per the previous comments stating it would be an act of fraud etc.

    Any advice would be greatly appreciated.



    • Hi Rob. It would depend on whether the finance company knew your circumstances and approved it, or whether the dealer lied about it to the finance company.

      As for your rights to hand the car back, it will depend on the type of agreement you have, but it’s unlikely that it states you can simply walk away from the agreement at any point.

  10. Hi Stuart I know this thread is old but my wife and I need A new car she has great credit and mine is appaling but i earn more than her so will be financingbit from our joint account she will be the main driver as i have the use of a company car as well. . do you think this would be possible or can we do a joint application

    • Hi Ben. If you are genuinely married, living happily together at the same address on the electoral roll and the money is coming from a joint account, then the finance company may well be perfectly content.

      What they are looking for is a situation where two people may be married on paper but have separated and there is a considerable risk of payments not being made as a result of any disputes.

  11. Hi Stuart

    There are so many comments – I tried to see if one was like my situation but couldn’t find one so thought I’d ask. Sorry for the long message!

    My father and I are in the process of setting up a business together. We don’t live at the same address.

    I drive an older car that I have been wanting to replace, but with the new business do not want to make a large purchase – cash or credit.

    My father has offered to purchase me a car as he knows I was due to change it and he sees it a beneficial to the business that I turn up to meetings etc in a decent vehicle. I will be the main driver, it will be kept at my address, he may drive it from time to time and so will probably be a named driver on the insurance.

    He had intended to buy the car in cash – I had done a little research and had come to the conclusion he couldn’t take out a PCP deal essentially on my behalf, so we thought it was all fairly straightforward.

    However, two “luxury German brand” dealers have both said it would not be an issue at all, so now we are thoroughly confused.

    Are these dealers trying it on – trying to shift a more expensive car and sell a finance deal – and, like you have said previously, will deny all knowledge if/when it all comes crashing down?

    Or, does the fact that I haven’t been refused credit, our situation, and the fact we were upfront about the situation change things?

    Incidentally I tried to get online quotes for insurance with him as the registered keeper and a named driver and they seemed to go through ok.

    I’m thoroughly confused – everything tells me that they are trying it on but we did push them very hard on it and they were convinced it was fine. I’ll be very annoyed if they are trying it on, as we initially had no intention of using finance, it was them that opened that door. Help!!

  12. Hi Stuart,

    I have recently tried to sell my car, and discovered that finance still exists on the vehicle. When I bought the car, it was from a friend who had bought the car via PCP finance. He stated that he had paid it off and I made private payments to him. Upon relocating abroad, finding out that he hadn’t cleared his finance has caused issues. I have contacted the finance company (Black Horse) and told them this. They have stated that it was taken out on an Accommodation Deal. Again, I had no knowledge of this being done. After looking extensively, some people have suggested that due to him never actually being named as the registered keeper, and me having no knowledge of the finance when I bought the car, I should be able to have the outstanding finance taken off the car and solely put onto him (who has left the country due to fraud).

    Where do I stand in all of this?

    • Hi Chris. Situations like this get quite complicated very quickly. I would suggest getting some legal advice to help you work through the various issues, especially since the car was never your friend’s to begin with.

  13. Hi Stuart,

    My husband asked me to take a car out in his name in 2015, which I was willing to do, as he was in despite with his bank, and was unable to get credit. Last year, he got a new car with the same garage and they asked me to simply sign the new credit agreement, without needing to take any of my details.

    My husband and I are now separated (no legally yet), but the car and the finance are still in my name. I am nervous that such a large amount of debt is in my name and I am keen to transfer the agreement to my husband (he can now get credit no problem).

    Could I say to the dealer that the loan was technically taken out as an accommodation loan and that they should refinance the agreement in his name? I feel very vulnerable given the separation.

    • Hi Joanne. Finance companies are generally happy with what would normally be considered an accommodation deal for married couples, as finances are normally shared anyway. Obviously, there is a significant risk that things can go wrong in a marriage and that’s something that you need to manage.

      Trying to dob in the dealer and your husband for an accommodation deal is likely to trigger the finance company terminating the agreement altogether and trying to charge you a lot of money for any negative equity. Because the finance is in your name, it’s you they will be coming after rather than your husband. And if he refuses to

      Ideally, you should try and resolve how you want to manage the agreement with your husband. You could suggest he take out a personal loan to settle the car finance agreement, which would clear your responsibilities and leave him to manage the loan himself.

  14. Hi stuart

    I’m new on this forum. can someone please give me some professional advice for the following issue?

    My wife bought a Ford Galaxy from private dealer on HP finance around 15 months ago.at the milage of 29000.
    The car was manufactured in june 2015.this car has still manufacturing warranty till june2018.
    one day we were going on motorway then suddenly car lost the power and soon as pulled of on the hard shoulder its power was cut off then did not start.i called the AA and they dropped the car to local ford franchised.as the car was still under warranty.
    I provided them full service history with record of all 3 services done at the time.
    I am the second owner and a renting car company was the 1st owner when i bought it from a private dealer.
    the first service was done at 13800 miles instead of 12500 by that rent a car (first owner)
    second service was done by the first owner at 25000 miles.
    third service I got it done privately around 35000 miles.
    when I took the car to local ford dealer they diagosed as oil pump failure which caused engine seized and decline the warranty by saying that the first milage was done out of miles (on 13800 miles instead of 12500 so your warranty has become invalid. Then I spoke to main ford dealer and after few weeks they gave me a different excuse by saying the difference between 1st and 3rd service is 5month, which does not make any sense and they were not counting the 2nd service, so they decline warranty on baseless reason.
    I’m still paying finance and my car is off road since last 3 months.now someone has told me to speak to finance company they might help or force the dealer to repair it.
    would it be helpful to speaking to finance company or if I have any right to return the vehicle if it has fixed with faulty oil pump or other parts which I discovered around one year later from the time of purchase?
    ford has told me to pay £8000 to put new engine and oil pump
    Which of course I can’t afford.
    The car had total milage only around 45000 at the time of breakdown.

    i. Looking forward to a professional relevant advice asap please.

    many thanks

    • Hi Mujshah. If the fix is £8,000 for a new engine, it’s not surprising that the dealer and manufacturer will be looking for any way to avoid footing the bill.

      You will need to compare your service records with Ford’s warranty information in your owners’ manual. Ultimately, if the servicing has not been done in accordance with the manufacturer’s instructions, the manufacturer is usually entitled to refuse a warranty claim.

      It would also be useful to research on the internet to see if this is a common problem on cars with that engine (it is probably used by other models as well as the Galaxy), or a one-off problem on your car. If it’s a known problem with that engine, it would strengthen your argument for Ford to repair the car under warranty.

  15. Hi Stuart. My dad has had his car for 18 months. I am now in a position where I need a car and my parents have decided to gift the car to me and continue to pay it off. Can I then be the registered keeper of the car as it is a gift?

    • Hi Bec. If your dad’s car is financed on a secured loan (like a PCP or HP), then your parents don’t legally have the right to gift the car to you as it’s not theirs to give away until the last penny is paid off. If it’s a personal loan that is not secured against the car, then your dad will be the legal owner and can give the car to you.

  16. Hi Stuart

    I have been making car payments on finance in my ex partners name for nearly 3 years. The car is registered and insured to me via the DVLA. The dealer knew this as i had had 2 cars through them previously and have part exchanged twice. They did not inform us of any issues at any time. my situation has changed and I cannot afford the car, I am more than happy to give the car to my ex to do with what he wants, but where does this leave me legally, will I have a fraud notice against me?

  17. Hi Stuart. I’d value your view on the following: My and my wife have leased 5 cars between us thus far and hers is due to go back at the end of Feb. Other half took a handsome redundancy pay-off 18 months ago and has had a period out of work, as a carer for her dying mother. She returns to a new post next week, but on reduced hours and income. That said, as an NHS senior manager myself, and with both the house paid off in full and no dependent children, we are well placed financially to continue to run 2 leased cars on my salary alone.

    Having applied to set up a lease deal for my wife’s replacement car, I was told today – largely as you have outlined above – that the lease company wouldn’t go forwards on the basis of me leasing a car for my wife to be the “main driver”, even though we are in a financially co-dependent relationship, with my intent simply to finance the deal in my name due to my wife’s recent period out of work. Ultimately our money is ours, not mine or hers, and I would hope that our finances are viewed as a household, not separately. What I was doing felt fine to me, as the financials would be in my name etc.

    Thoughts appreciated on the best way forward?

    • Hi Carl. Normally married couples are allowed a greater deal of leniency on this sort of thing, because (as you say) the financials tend to be joint. Other leasing companies may not have the same problem that your current one does, so check around.

  18. Hi Stuart. my partner has had finance on a car for over a year and has 3 years left to pay. She has since started her own business childminding and needs a bigger car. I’m thinking of buying her a cheap run around until her business builds up and using the finance car myself for commuting to work. Could she still make the payments until the finance is paid but sign the car over to me and put myself as the main driver on insurance and not tell the finance company? Thanks anyway really interesting forum it’s been a fantastic read and I was completely unaware of accommodation deals and it being fraud

  19. My ex wife got a car in her name for me. But she cheated and we split. I have given the car and keys back. Now she wants to take me to court about it. What do I do?

  20. Hi stuart my dad took out a car loan using his company for my girlfrend and she has made every payment and will so till the end when it is finished can he make a claim to the car because he is that sort of person if there is a fallout and yes is a commutation deal but the car has been registered in her name the whole time and somthing was put on paper stating that he would not renig on the deal but he scribbled the sighninf of it and he just is not trust worthy and we somtimes think he did it just so he would get a free car at the end he is not a driver of the car and the insurence is in her name not his is she going to be all good

    • Hi Ray. If she has possession of the car, the car is registered and insured in her name, she has the V5C logbook in her possession and she has the car keys, there’s not a huge amount he can do without going to court. And if he did that, he would essentially be admitting to committing fraud by taking out finance for a car for someone else.

      The description you provided is exactly why finance companies don’t allow these sort of deals. Statistically, accommodation deals are more likely to go wrong along the way. If there is a problem between your father and your girlfriend, the finance company is less likely to get its money and/or its car back again.

  21. Hi Stuart, I’m worried sick and have no idea what to do about my situation. Back in March I took out finance on a car for myself. My credit rating wasn’t great but as I had been in a relatively well paid and secure job for almost 3 years I was able to secure up to £8,500. Though the APR was quite high due to my poor credit rating I was happy with the deal as it gave me the opportunity to rebuild my credit. I even recommended my friend to the car dealer the following week as she was in a similar situation to myself. However, after all the relevant checks were done the dealership told my friend the most any of the finance companies they dealt with had agreed to offer her was £1,500 (we assumed this was because she’d only been in her current job for 3 months). They had nothing that low priced and my friend became very upset as we’d travelled a long way etc. The dealer then proceeded to coerce me into taking out the finance for her in my name, even pointing out to me “As you only took your finance out a week ago it won’t be “live” yet so won’t show up on a search so you will still qualify for up to £8,500 of finance. My friend’s face lit up as she looked at me pleadingly. I did feel desperately sorry for her but at the same time I felt extremely pressured into committing to another finance agreement on her behalf, despite knowing her for many years and having no reason to believe she would risk our friendship by not keeping up with the payments. I reluctantly agreed, she chose a car at £5,995 and the deal was done. How wrong I was!! She has not only refused to pay any more payments into my account recently but I was shocked to find her car parked outside my house and the keys and DVLA new keeper slip pushed through my letter box when I got home from work today. I have tried to contact her but she has blocked me on social media etc. Even if I wanted to I can’t afford to pay the £212 per month that she was paying for her car as I have my own to pay. What should I do? should I call the finance company, explain the situation and tell them to come and get the car? I’ve worked hard this year to try and repair my credit rating and now I feel it has all been for nothing. The finance company will no doubt just sell the car at auction for a fraction of what “I” still owe. She even left and empty drinks can and cigarette ash all over the interior like an “Up yours!” to me :o(

    • Hi Kim. You will need to sort out your situation with the finance company, but it’s unlikely to go well. Your best bet is to try and make a formal complaint about the dealer’s selling practices, for coercing you into an accommodation deal situation. However, it probably won’t help you.

  22. 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!

    • 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.

  23. 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!

  24. 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

    • 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.

  25. 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 ?

  26. 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?

    • 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.

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

  28. 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.

    • 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).

  29. 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?


  30. 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?

    • 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.

  31. 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

    • 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.

  32. 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.

    • 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.

    • 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

    • 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

    • 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.

  33. 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.

    • 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.

  34. 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

    • 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.

  35. 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

    • 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.

  36. 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

    • 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.

  37. 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

    • 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…

  38. 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?

  39. 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?

    • 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.

  40. 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,

    • 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.

  41. 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?

    • 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.

  42. 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.

    • 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.

  43. 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

    • 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.

  44. 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

  45. 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

    • 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.

  46. 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.

    • 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.

  47. 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?

    • 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.

    • 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?

  48. 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?

    • 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.

  49. 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?

  50. 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?

    • 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.

  51. 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!

    • 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.

  52. 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?

    • 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.

  53. 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?

    • 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.

  54. Hi, I am looking for some advice. I have had a car lease for over 2 years and now, because of a change of circumstances, there are too many cars in my household. My mother however really needs a new car. Can I lend her my lease car indefinitely (no longer than the end of the lease, naturally)? We don’t share the same address and I intend to keep making the paymen’s myself. Is there anyway that can be done without breaking any regulations? I appreciate your help. Thank you

    • 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.

  55. Hi,

    I got a provisional licence 15 years ago (so am assuming this has expired now?) however I haven’t ruled out learning to drive at some point. I’m looking to buy a car through hire purchase for my fiance as a gift – I will be paying the monthly payments etc in exchange for him driving me around. Is this possible, given I still may learn to drive in the future at which point I would add myself to his insurance policy?

    • Hi Meg. You can’t use a hire purchase if you are not going to be the main driver, but you could get a personal loan instead (and the interest rate is usually lower).

  56. Hi, I wonder if you can help? Four years ago my business partner took out a pcp on my behalf (as I can’t get any finance and need a car for our business), so he is down as the registered owner, I’m down as the registered keeper on the V5 so I pay the insurance, road tax and all the running costs. The agreement is up in a week or two and the dealer has told me that they are not allowed to do this any more as the law has changed, is this right. No payments have been missed. The car was a year old at the time as would be the replacement. This will potentially mean I’m going to be without a car which in turn means the five people I employ might be without work if I can’t get out to bring new work in. Aaahhhh! Surely there must be a way?

  57. Hi all
    Some very interesting information on here.
    I am desperate for help and guidance please. My position is this,
    My partner is in an IVA and has been for a few years so was unable to get any finance. His friend took out car finance for him 12 months ago, obviously both living at different addresses. Payments go out of friends account, with my partner paying every payment in cash, never missing. My partner is also the registered keeper and has his own insurance etc in his own name.
    We have been told that the finance company are now aware of this!! What will happen. Will they close the finance and take the car? We are not in a position to pay the finance off, what options do we have, if any?

    • Hi Lisa. It is quite likely that the finance company will cancel the contract and ask for the immediate return of their car, and it will probably affect your partner’s friend’s credit rating.

      Alternatively, the company may demand that the outstanding balance be settled immediately and in full, meaning that your partner’s friend will have to come up with a lot of cash in a short time. Or if the company doesn’t want to take such drastic action, it may insist that the logbook is transferred to the friend’s name, and that the car is kept at the friend’s house (and also insured in the friend’s name). Basically the friend is the one who is supposed to be driving and taking responsibility for the car, which still belongs to the finance company.

  58. Hi Stuart,

    I would appreciate your advice. I took out a finance agreement in my name on behalf of my boyfriend last year. At the time, he was in an IVA and would not have been approved, despite the fact he earns 40k and can easily afford the £160 monthly payments (the car was only around 3k). Anyway the dealership knew I was taking the finance in my name and actually asked us who we wanted the car to be registered to. We decided my bf as I have my own car etc and had no interest in using this car. At the time we didn’t live together. We weren’t made aware this was an issue.
    We have now decided to sort our finances better as we have bought a house (the house or mortgage is not currently in my name, just his whilst I clear my debt) and we have decided the sell the car I financed. I phoned the finance company to get a settlement figure and when asked was I the registered keeper I said no (didn’t realise it was wrong). The lady has now stated I’m in breach of contract and whilst she sympathises I wasn’t made aware from the dealership she has to pass this information on to her management and they will be in touch. It also now sounds dodgy because we are both now living at a new address (we moved literally a couple of weeks ago).
    I was upfront and honest about everything and have not missed any payments nor intend to and have even paid bulk amounts to get the finance down however I understand the finance companies viewpoint on it.
    She said I can transfer the logbook into my name and insure myself on the car when they contact me back however this isn’t an ideal option as just last week I was hit in the back of my own car and currently have a claim going through (even though the third party have accepted liability I feel my premiums in the interim are going to go up until the claim is closed).
    What I want to know is 1. Is my boyfriends insurance valid on this car and should he be driving it (he’s had no problems taxing it though) and 2. Despite the debt I have I have an excellent credit rating…I’m 30 years old and have never missed a payment on anything…is something going to be issued against my name? My mum has recently come into a bit of money and I’m thinking about asking her for the outstanding balance and just paying the finance company the settlement figure, sell the car and and pay my mum back…would they accept this?
    Thank you

    • Hi Heather. It’s quite possible that the finance company will insist on cancelling the contract or asking you to settle the finance immediately, as you are in breach of contract. Unfortunately, it doesn’t matter what the people at the car dealership did or didn’t tell you; it would have been written into the contract that you signed.

  59. A friend of mine has got fiance on a car from a company that specifically deals in the learner car business. He has got this car on fiance for his father, the one who runs the leaner driver car. Am I right on saying, two fold, 1. The fact he’s got the finance for his father is a little bit naughty, but, 2. The fact that he has got the fiance on a car for his dad to run a business is very very naughty. The friend was contacted by the finance company because the car was registered, taxed and insured in his dads name. He was told that these 3 areas needed to be rectified. The friend has changed the tax and v5 into his name but I’m not sure about the insurance because of the fact that his dad is using it for business use. The dealer who arranged the finance has obviously let this go ahead. If anything comes back onto my friend, again, am I right in saying that there is a very strong possibility that my friend can be done for fraud, 2 fold?

    • Hi Richard. I don’t know what the chances are that the finance company would want to go down the path of having your friend charged with fraud, which would be complicated and expensive to prosecute, but they would almost certainly cancel the agreement and demand full payment immediately, as your friend is in breach of the contract T&Cs.

  60. Hi I cannot get finance, so my dad has offer to buy me a car on finance but I will be the main driver, can the car be registered as mine?

  61. Hi Stuart

    My brother’s girlfriend bought a car on finance on her name for my brother. Although he has made every single payment per month via a bank transfer to her’s for the last 3 years. He is the main driver with the log book insurance etc in his name. They have just broken up and she has had the car towed away as it’s in her name under Finance agreement. How can he get the car back?

  62. 14 months ago I purchased a car as my partner couldn’t get the finance. At no point did the dealer explain any of the above! The car/Insurance is in my name with my bank details and my partner just transfers the money into my account every month. Problem is now my company car is being taken from me and i need to purchase my own car! Will i be able to transfer the finance and car to him if he passes the credit check?

    • Thanks for the swift response. Have you got any ideas as to how i can deal with this? Is it a case where in effect i sell him the car, so he finds another finance company?

    • You will need to find out the settlement amount from the finance company. He could take out a personal loan to pay for this, and then you transfer the car into his name once the finance has been settled and the finance company confirms that they no longer have any interest in the vehicle.

  63. Hi, I have quite a awkward situation going on with my finance company.
    I signed the agreement with them about 2 weeks ago and yesterday they called me that I have to give the car back to the dealership because they aren’t paying for it. The reason that they gave me was that I need to have a full uk drivers licence, not a provisional as I currently have. In the agreement between me and the finance comp there is nowhere stated this, but they insist that is the company’s policy or is in the agreement between the finance comp and the dealership.

    I told them that I don’t understand where is my problem because I disclosed everything to them and the dealership knew that I have provisional and they said that everything is ok. They even made a copy after it and checked it.

    Can they void the contract on this thing, even if it’s not the t&c of the contract?

    I am the registered Keeper on the V5c and a secondary driver until I obtain my full licence.

    Thank you

    • Hi Diana. It is true that most finance companies require a full driver’s licence for a PCP or HP. It is something that the dealership should have known and explained – so either they were ignorant of the finance company’s policy or they hoped no-one would notice.

      The finance company has the right to terminate the contract. If you want to dispute this, or claim against them for any financial loss as a result, you will to take action against them. Try visiting legalbeagles.info, or seek your own legal advice.

  64. Hi everyone, some very interesting stories here, but i have a scenario i would like some feedback on.

    My son is nearly 19 and wants to buy a decent car but fears he may not get the finance (he has a good full time job)

    Here is my idea:
    Car finance in my name (DAD)
    Registered keeper (DAD)
    Finance payments made by SON (SON’s bank details given to finance company as part of the agreement)
    Insured by SON (in his name) as main driver but with DAD and MUM as named drivers

    Would this work? This would be basically to ensure he gets the car, if he tried it in his name (with no credit history) he may be refused and have a rejection on his credit file.

    Thanks for any advice.


    • Hi Paul. Unlikely that you will be able to do that, as it is a clear accommodation deal. It may be possible for him to get finance with you as a guarantor, rather than you getting the finance in your name.

  65. Wondering if anyone can tell me if I can get car on finance in my mums name?
    I’m 17 and taking my test in a couple of months I earn enough money to pay the monthly payment myself but I have been told I have to be 18. I was trying to find out if my mum can take out the finance for me and I pay her the money but my mum does not have a driving licence and I know most need one for finance.


    • Hi Hollie. No, probably not. Getting car finance when you don’t have a driver’s licence is fairly difficult, as it immediately falls under accommodation deals.

  66. Hi Stuart – I purchased a car for my parents as a Christmas present for them with 5,000 on finance. None of the above was mentioned when sorting out the finance with the company, now, their insurance company need the car in their name (or me as main insured). Question is, if I change the name of the car to my parents address further afield, will the finance company find out about this? Or, shall I call them and see what their response is… The downside is, I can’t afford to pay off the agreement if this is not allowed.

    • Hi J. You’ll have to discuss it with the finance company. Because it’s not a huge amount of money compared to the average car finance borrowing, they may be fine with it – especially if you lay it on thick about how you weren’t told about it during the application. No guarantees, though; you do run the risk of them wanting to cancel the finance agreement altogether.

  67. Hi need a little help, my partner has just got me a car out on finance in his name, the finance company knew this & was wondering whether I would be the registered keeper as I am a new drive & want to get my own insurance out

  68. Hello,

    I recently brought myself a car on finance through a garage who set the finance up for me through a different company. Now when I showed my Provisional license the guy asked me if that’s all I had and I said yes and he asked me to call him and I did and he explained that some fianace company’s won’t accept me because of it but managed to get me finance on the car anyway but now the finance company have found out I have a provisional license and want me to settle the full amount and I simply can’t. Do I have a leg to stand on?

    • Hi Richard. Probably not, but it will depend on what is written in your contract. If it’s not set out in your finance agreement that you have to have a full driver’s licence, then they can’t use it as an excuse to cancel the contract. The written agreement is what matters – what the salesman at the dealer said will be considered irrelevant.

  69. Hi Stuart,

    Slightly nuanced question here…what if I am buying a car as a gift for my father? I never expect him to pay for it…ever. It’s my loan and my obligation. While very similar to your article, there is a slight difference in that it’s never really fraud. Is that something I just disclose?

    Thanks and great job replying to everyone’s comments…that’s a rarity.


    • Hi Jake. It probably wouldn’t be allowed, but you could ask the finance company for their advice before you make an application. Preferably call the finance company rather than asking the dealer, as they won’t necessarily know the answer.

      It’s not fraud if it’s disclosed and you comply with the contract. If they don’t like it, they won’t offer you finance. It becomes fraud when someone signs a finance agreement which says that the car is for them, but really it’s for someone else.

  70. Hi, my wife recently purchased a car on a pcp, the car was put in my name and the insurance is in my name also, the finance is in my wifes name though, the car sales company I use to work for were made aware of this before my wife made the purchase and all documents got sent to admin to be processed, there was a note asking for the vehicle to be put in my name, at no point was I made aware this was not legal? What rights do we have in this situation? Thank you

    • Hi Mark. The issue is not that it’s illegal, but it’s usually against the finance company rules.

      It may be that the finance company is happy with the car being in your name while the finance is in your wife’s name, but that’s not normally the case. If you are still married and living together as a couple, the finance company may be content with everything as it currently is. If the dealership has told the finance company that the car is in your wife’s name, but actually registered it in your name (ie – the dealer lied to the finance company), that may be more of an issue.

      You said that you worked for a ‘car sales company’. It may be that the car had to be in your name to get a certain discount available to employees. In any case, it’s only an issue of legality if you are knowingly providing false information to the finance company about your finance application.

  71. Hi Stuart,
    I have a car that is financed in my name but it is for my sister. My parents are paying the note on the vehicle. We all live in the house together and we are all listed on my mom’s insurance together. I am looking to get another car for myself because my current car is about to go out on me. Do you think that the car dealer would finance another car for me? If not, what advice could you give me?

    • Hi Felicia. It’s difficult to predict whether the finance company would approve or decline your application. If it is the same finance company, they may question why you want to finance another car when you already have one on finance with them, which means they may start looking at your file to find out more about your current car. A different finance company may not have the same issues, as they won’t be able to see the detail of your current agreement.

      Your current finance agreement sounds complicated – the car is in your name, but it’s for your sister and your parents are paying for it. My advice would be to get this finance agreement completed before starting another one, as there is plenty of potential for things to go wrong.

  72. Hi Stuart,

    I approached a car dealer as I wanted to upgrade my vehicle. As my previous vehicle was in my sisters name, and had been for 3 years, with the car dealer knowing this, I attempted to get the new car financed in my name but failed due to poor credit. The dealership asked me if my sister or anyone else would finance the vehicle for me, I then asked my sister (who lives in a different property) and she kindly offered to finance the car again and I part exchanged the vehicle I had and put money on top of this deal too to the total of £12500. The dealership also put the log book in my name as they identified me as the owner of the vehicle and I also produced insurance documents with me as the main driver. I have had the car for 6 months now and have never missed a payment.
    The finance company came to my property to seize the car stating that it had been obtained fraudunately. I tried to explain that we was told to finance the car this way by the dealership but this was fallen on to deaf ears.
    If this is illegal, I have no problem giving the car back. I do however would like to know who is responsible for returning my deposit that I put in at the start of the deal?
    Would really like some advice!

    • Hi Aysha. I think you can safely wave goodbye to your deposit. It’s not refundable or returnable, it’s an up-front payment on the vehicle, which is then followed by 36 monthly payments of £x.

      Unfortunately, the finance company will not care about what the dealership may or may not have told you, as you have found out to your cost. If you have something in writing from the dealer to back up that claim, then you could take action against the dealer (not the finance company, unless you can argue that their agent – the Business Manager at the dealership – has missold the finance). However, the chances of this being the case are usually slim to none, as dealers are savvy enough never to put such advice into writing.

  73. Hi quick question me and my boyfriend went to a car company and explained we were looking for a cheap car o finance we explained tk them the finiance would be in my name as i have a better credit score also explained i wudnt be drinving the car which they were well aware ofas they had to take my passport for id …does it mean the car companh afr in the wrong n i have to give the car back or wud we be in troube even though we told them what are llans were..5 year lease and only paid 1 and half years so far

    • Hi Tasha. It will depend what your finance agreement says. If you have signed a contract which says that you are the main driver, then you would be in breach of that contract. If the finance company doesn’t have a problem with it, then you’re fine.

      It won’t really matter whether the dealer was right or wrong, as they sell the car to the finance company, and the finance company then mortgages the car to you. So you are currently driving around in the finance company’s car, and if you are breaking their rules then they are entitled to take it back. It doesn’t mean that it will definitely happen, but it could.

    • If it is incontract i have to be amain driver does that mean i would have to hand the car back would i have to pay anything aswel on top l??

    • We can’t second-guess what the finance company would choose to do. However, if they choose to terminate the contract then it is unlikely they could charge you for anything else, unless there is damage or you have not serviced the car correctly.

  74. Hi Stuart. My partner got rejected on a lease deal. She would have been main car user and myself other user. We got told I cannot now apply for a lease car as I am at the same address. Is this correct?

    • Hi Liam. Yes, this is correct. If you now apply for car finance, the finance company will automatically treat it as an accommodation deal and decline you.

      This only applies to that particular finance company. There is nothing to stop you applying for finance from another provider, but as part of the application you are expected to declare that you are the main driver. If you knowingly make an application for a car that your partner will be driving, it’s still an accommodation deal and you are technically committing fraud.

  75. hi, my boyfriend bought our car 3 weeks ago. drove miles away to collect. the garage knew it was only going to be me driving the car as my partner couldnt get insured because of points on his license. a week later finance company call saying he needs to be insured or the car is getting taken off us? what can we do?? we knew nothing about this. also the garage registered the car in my name knowing the finance was in my partners name.

    • Hi Maisie. Well, you will probably have to pay a fortune to get him insured or give back the car. It’s not your car, it’s the finance company’s, and they make the rules. Even if the dealer did not tell you, it would have been written into the finance agreement. Yes, the dealer is a jerk, but it is the responsibility of the buyer to read everything before signing.

  76. I am planning to buy a new car for my wife as a suprise. I will drive the car but she will probably drive it more than me overall (although she doesn’t use it for work commute so it will be close between the two of us in terms of miles driven) so think for insurance purposes she will need to be the main driver. If I take a pcp deal in my name and have an insurance policy with her as main driver is that OK?

    • Hi Alex. That should be OK, as long as the insurance policy is in your name.

      Finance companies tend to be more relaxed about married couples (as long as you are actually still together!), because a lot of the finances are shared anyway. As long as you are not trying to deceive the finance company in your application, there is not usually too much trouble.

    • Thanks Stuart. I will then make sure the insurance policy is in my name. I expect we would both easily pass any credit checks but this means I can keep it as a surprise which isn’t vital but more fun to do! Cheers

  77. The company I work for is looking to supply me with a vehicle for my personal use. The three company directors do not wish to put this through the business and are willing to split the cost of the lease between all three of them, with one of them having their name on the contract. Am I able to insure the car as myself as the main driver? Thanks

    • Hi Kelly. I would say probably not, and it also doesn't sound like a very solid deal for you. Even if they can work it out so that it's not an accommodation deal (unlikely if they are not running it through the business), it is still dependent on the three of them continuing to fund it over a period of years.

  78. I just bought a car in my name and my finance for the purpose of my daughter having a car to drive when she passed her test. On passing her test the insurance is out of this world for me as the named driver, my wife and my daughter on the insurance. However if the vehicle is registered in my daughters name with my wife as a name driver then the insurance becomes affordable. Can I change the registered keeper of the vehicle whilst maintain the payments for the finance myself?

    • Hi Justin. Check your finance agreement, but probably not. Usually the V5 and insurance must be in the same name, and at the same address, as the finance agreement.

  79. I can't get finance so my father-in-law got the finance in his name but I pay the monthly payments, I've never missed a payment and don't intend to. On my insurance I have put him down as the owner but I am the keeper. The finance is in his name and address and the insurance is in my name and address. I now have to many kids to fit into the car and need a bigger car, I phoned the finance comp to get a settlement figure she then asked why the finance was in F-I-L name so I explained and she said she don't know why the finance is in his name as its accommodation fraud! So now she knows I've gotta settle the account asap… Why wasn't we told at the beginning? I've felt with the finance comp at the start of the agreement as the car had a major problem so I was on the phone a lot so I had to be put in the account so I was allowed to talk about it. We have been honest from day one about us not being able to get credit etc (to be honest we didn't know it wasn't allowed) so now I can't get a new car???

    • Hi Emma. It's becoming a bigger problem, and finance companies are tightening their rules because dealers haven't explained it properly, which sounds like what has happened in your case. I was working in UK dealerships for nearly four years before I found out it wasn't allowed, simply because the finance managers never really discussed it or were encouraged to keep it quiet. This is now changing, and finance companies are now ordering dealers not to entertain accommodation deals under any circumstances – with severe penalties if they are caught trying to do so. As explained in the article above, it's not a legal issue as much as a policy issue because it is more likely to cause greater risks and lots of problems.

      There should have been a clause in the finance T&Cs where the applicant declares that he/she will be the owner and main user, and that they are not taking out finance for someone else, so the finance company can argue that your father-in-law knowingly committed fraud. In reality, it can normally be worked out without the finance company taking action against your or your father-in-law to affect credit ratings or prevent future finance. The finance company does not want to go through any hassle with reporting fraud (which is a criminal offence), so they should be happy to have the matter resolved promptly.

      Yes, you and your father-in-law are going to have to sell the car and settle the finance. As long as this happens promptly, the finance company can close off the agreement and not pursue anything further. However, you almost certainly won't be able to get another car in the same way as finance companies and dealers are much stricter about applications now than they were even a couple of years ago.

  80. Hi Stuart

    I would appreciate your advise. I am planning to buy a car on HP It will be shared between my wife and I, if i take out the finance can the car be insured with my wife as the main driver and me as a named driver? from reading the paperwork i need to be the registered keeper. Help

    • Hi Jezza. Yes, you will definitely need to be the registered keeper. With your insurance, some finance companies are stricter than others. Generally, they all like the same person listed on the finance, V5 and insurance form. Some will be happy with you listed as a named driver, others will want the insurance in your name with your wife as a named driver. Given that you are married and (presumably) live at the same address, it probably won't be a major problem.

  81. Hi wonder if you can help there is a d2bt order on my car but the debt is in my name. At the time of getting the car i could not get finance so my dear mother sais she would do it. Anyway she managed to get an unsecured loan, my question is who does the car belong to. My mums name and details are all over the agreement so does the car belong to her.


    • Hi Graham. If your mum's name is on the vehicle order and invoice, then the car belongs to her.

      If her finance was a personal loan not secured against the car, and she used the loan money to pay for the car, then the car belongs to whoever is listed on the invoice (eg – you or her). If the finance was a secured loan (eg – HP or PCP), then the car belongs to the finance company.

  82. Hello my friend is going through a seperation, is it legal for her spouse to buy a car under both names without her consent or being present to sign the loan papers?

  83. What rights does my ex-partner have taking over ownership of my finance deal with the garage for the car, If her credit rating is bad and I'm not bothered about continuing payments.

  84. Hi my brother would like to pay my car but I won't be driving it has much so he's decided to take over payments it's a pcp deal ,I would prefer to make him the registered keeper and me has a named driver ,Would this be ok either though the finance is in my name

    • Hi Katy. Your finance agreement will probably tell you that you need to keep the car registered in your name, but you can add your brother to your insurance as a named driver.

      You are ultimately responsible for paying off your PCP, even if your brother is helping you with the payments. If you transfer that responsibility across to him and the finance company finds out, you will be in breach of your contract and there could be significant penalties.

    • Yes I understand that but at the end of the agreement my brother is paying the full amount of that's left on the pcp ,If he takes insurance out fully comp and me as a named driver but car still registered in my name but I'm a named driver and still on the insurance just he is at a different address where the car mostly will be present

    • Yes, but you're not allowed to do that. What you and your brother would like to be able to do is largely irrelevant; it's all about what your contract with the finance company says.

      If you want to settle the agreement now and pay it all out using your brother's money, then that's fine. But until it is all paid off, the vehicle still belongs to the finance company so they get to make the rules. And unless the finance company you are using is different to all the others, they will say the the V5 book must be in your name, you have to keep the vehicle comprehensively insured in your name (with other named drivers allowed), you have to be the main driver and the vehicle must ordinarily be kept at your address as on the V5.

  85. Hi Stuart

    I really need some help please – don't know what to do for the best?

    Both my wife and I knew we wouldn't get credit for a new car – so the salesman at Seat suggested we ask my wife's mother to do it in her name. He said he could set the D/D up to come out of my bank account (rather than mother-in-laws) as the finance company "wouldn't know any different".

    Now, after reading this thread, I have no idea where we stand in relation to insurance, ownership etc? I changed the logbook to my name so I am the registered owner – but who owns the vehicle and how can I correctly insure it?


    • Hi Eddie. The SEAT bloke was well out of line if the finance is with Volkswagen Financial Services, as they would not allow it. Should the finance company find out, they are likely to try and cancel the agreement.

      The finance company is the registered owner of the car until the finance is all paid off, so neither you or your mother-in-law is the registered owner – you are the registered keeper. However, the finance company has not authorised you to be the keeper of the car, so your MIL will be in breach of her agreement. Get the contract out and read it thoroughly, as it should cover it in there.

      You should transfer the V5 logbook back to your MIL and have her insure the car (listing you and your wife as named drivers) – that should cover you for insurance purposes.

      As for the finance agreement, you can either come clean to the finance company or keep paying it off and hope they don't notice. If you go to the finance company, you would probably be best placed to do it as a whistleblower and lay the blame on the dealer for misleading you. You won't be able to escape the fact that it is quite likely to all be spelled out in your contract and therefore your mother-in-law shouldn't have signed it, but they will certainly be aware that most people never read their contracts anyway. If you go this way, you should do it as soon as possible and make it clear that you have only just realised that you have been misadvised.

    • Thank you for that Stuart – very helpful.

      First and foremost I will sort the logbook and insurance – I guess our insurance for the past three years has not been worth the paper its written on – which is a major concern.

      This is the SECOND car in three years we have had from the same dealership with the same advice both times. I now feel we were definitely misadvised – but I guess the signed paperwork will cover Seat.

      Luckily nothing has happened from an insurance point of view – but it is a sickening thought of "what if".

      I will hurriedly try to make amends – thank you.

    • P.S I had a thorough read of the contract Stuart and can't see anything relating to changing registered keeper etc. That being said, I only have a copy of the "Pre-Contract Credit Information" (which doesn't even mention my MIL's name).

      It appears we were never given/sent a full contract.

  86. what about someone who like myself has a lease and can't afford the car anymore but I have someone who wants to take it over but wouldn't be approved to have it in her name?

  87. Hi Stuart

    I reluctantly took out finance on an Audi for my girlfriend, she was declared bankrupt by somebody leaving her when she was in possession of the debt, so never thought she would do the same to me. How I was wrong! My question is, I am down as the person responsible for paying the finance and am the only named person on the loan agreement. She is the only party named on the V5C Doc. I'd like to know if I am the legal owner of the vehicle. She has took off with the vehicle, so my thinking is, if I am it's technically theft and I should be able to get the vehicle back


    • Hi Chad. Unfortunately you are probably not the legal owner of the vehicle – if the finance agreement is a PCP or HP, the finance company retains ownership of the vehicle until the final payment has been made. With a PCP or HP, the finance is secured against the vehicle. This means that the finance company can take action to reclaim the vehicle if you stop paying, but is limited in taking action against you personally to recoup their losses (ie – they can't force you into bankruptcy). However, if you refuse to hand over the car then you could be considered to have stolen it. The finance company has no recourse against your (ex-)girlfriend and they will chase you rather than her.

      If it was a personal loan, the finance is unsecured and you are personally liable for the finance – the car is irrelevant. The finance company can basically drive you into bankruptcy if necessary to get their money back. In this situation, the contract of sale for the car is the only proof of ownership. If your name is on that piece of paper, you can argue that you are the legal owner. However, if you gave your girlfriend the keys to the car or ever allowed her to drive it (which you obviously did, since you were financing it for her), you have virtually zero chance of getting it back.

      Either way, you're probably screwed. Sorry.

  88. Hi,
    I got rejected due to my addresses being wrong on my bank to my current address, so my partner stepped in (after the advice of Audi) and then we got approved but obviously finance is in her name but the car is in mine, now I know this is not what finance company like so is our only solution to put everything in my partners name even if i'm paying for everything and the main driver, including insurance policy holder?

    • Hi Max. The advice from Audi seems odd if it was a simple admin error if your application was otherwise fine and you could provide alternative proof of your address. Making the purchase and finance in your partner's name (which is ultimately an accommodation deal, even if it is acceptable to them) seems like a riskier move for them. It may even be that the finance company rejects an application from your partner as well (if they sense an accommodation deal), regardless of what the dealer suggests.

  89. Hi Stu,

    My son got turned down for finance when he went to buy a car and he called me from the dealers and asked me if I would be guarantor on the loan and he could then get it. I reluctantly agreed, and gave him all the details he asked for on the phone. I then drove to the dealers (a very well known second hand dealer). When I got there my son told me that the APR rate for finance with his name on it was still very high, and asked if could I finance it for him. I was on the spot and under pressure,really worried, but as his pregnant partner was there, again reluctantly , I agreed.
    I read him the riot act – 'if you dont pay, i'll tke back the car and sell it, etc'. He promised faithfully he would repay. Gave the salesman, who was aware of the arrangement that was happening, my passport for ID, signed and it was done.He drove off in the car, everyone (fairly) happy.
    The original car registration came to my house as I expected, (I seem to think my sons name was on it). I handed it over, so my son could 'admisiter' the vehicle as the keeper/main driver.
    My son made payments to me, through the bank, but after 3 months they stopped.
    Then I couldnt get hold of him, for months, but eventually I did. I told him I wanted my money and got a sob story, but relented and was expecting repayments to restart. They didn't – I went back, and was prepared to take the car, but It wasnt there. I demanded either the money or return of the car, got more sob stories and no money or car. I stopped paying the finance, and when I called the finance company, they told me I was liable. I said I dont care, repossess the car. They declined and sid its a personal loan!! They were not interested in the car, my problems or where the vehicle was, pay up! I had to reinstate the payments.
    I went back, time after time, no luck, he moved again and I got no forwarding address. I then found out he had sold the car.
    I told the finance company – we dont care.
    I went to the police – its a civil matter.
    I am now in a right mess, finacially emotionally and personally – this is a common problem, people need to be aware. The dealers flout the rules, the finance companies are unsypathetic and the police are powerless.

    • Hi Buz. Sadly, your story is not that uncommon, and it happens for a variety of reasons. This is why finance companies have become very strict about not accepting accommodation deals. I hope you can work your situation out soon.

  90. Hi basically my sis wants to get a car on finance witch she has a provisional licence and she wants to share the car with me we both live in same address is this possible an how will it work in insurance wise

    • Hi Huss. This shouldn't be a problem, as long as the car is registered in her name, the insurance is in her name and the finance is in her name. You need to be listed as a named driver on the insurance if you are going to be driving the car regularly.

  91. I went with my partner because there was a recall on a part of a car that we own. While that was being fixed we had a little wonder around the show room to take a look at the cars. We had been thinking of part exchanging and buying another for both of us to use.
    We approached by a salesman and we got chatting. He started making quotes and giving us the sell. It turned out that the deposit on a new car would be the same amount we were due to pay in service/MOT. We explained our circumstances, work, driving experience. I told them that I was going to start learning to drive soon.
    We decided to put the finance deal in my partners name because up until Dec'14 he had been unemployed and I have been responsible for everything. We are slowly dividing up responsibility for bills. Unfortunately, he was declined 2 weeks ago without any explanation. When he spoke to the salesman, the salesman felt it was a good idea for me to apply for the finance in my name. I was accepted at first but then they asked for my driving license. I told them that I'm not sure if I could produce it, or if it was valid because 1) it is a provisional and 2) I got it 17 years ago. They said it would be OK and all I had to do was scan it and email it to them. I found it and did just that. A week passed and nothing. My partner contacted them and they told him that I had been approved but then declined because the insurance company felt it was an 'accommodation deal'.
    Surely, the salesman should have been aware of this at the beginning. Their actions/advice have caused both of us to have a black mark on our credit rating.
    Before my mum returned to work my dad would take out finance so that my mum had a car to drive.

  92. Hi Stuart
    What is the problem if my son finances a motorbike, he is the registered keeper and I am named as a rider of the bike ?

    • Hi Michael. That should be fine, assuming that your son is going to be riding the bike as well, and assuming the bike is kept at his address. It becomes an Accommodation Deal if he is buying and financing a bike that he has no intention of riding himself (ie – he’s buying it on your behalf because you can’t get finance).

  93. Hi Stuart, I was wondering if you could advise on something, I recently financed a car with the intention of it being a shared family car for me and my partner, iv just been given a company car so my partner will drive our car more than me I was wondering if she could be insured as the main driver with me as a named driver even though the car and gap insurance are in my name? Our current insurer have said no as my partner would need to be the registered keeper of the car? Any help greatly recited

    • Hi Chris. Usually the finance company and insurance company will want to see that the registered keeper is the main driver. If it is a family car, then it shouldn’t be too much hassle to keep you as the main driver and list everyone else who is going to be driving as named drivers. The rules are aimed at stopping accommodation deals as outlined above, where the person financing the car is not ever going to have use of it.

  94. Hi Stuart, I a car on finance for my brother back in 2006 and he stopped paying me, I have now been summoned to court and will have to pay £9500 + and get a ccj. Well disappointed and probably can’t do anything about it :(

    • Hi Jason. Unfortunately, your situation is the very embodiment of why finance companies will no longer accept these arrangements. Best of luck.

  95. this isn’t all correct,
    I have a car on finance and we even spoke to the financing company and said look yes the car will be financed in my name but my mum will be the main driver, all they asked was that I at least be a named driver, which i am anyway so that was no problem with us,
    but the thing is i couldn’t be main driver anyway because i am only a learner, and they knew this considering in my application i gave them a provisional licence.
    (this is taking into account i live with my mum currently)

    • Hi Charlotte. Your situation is a bit different in that you will still be driving the car and it will presumably ultimately be your car. The rules are designed to circumvent Person A buying a car for Person B (who is unable to get finance on their own), with no intention of driving the vehicle themselves

  96. What utter bullshit this article is, it assumes guilt where no guilt may lay. My son and myself are on benefits, we live in the countryside and my ex wife I live in the same house although we are divorced as friends and our sons live in the same house, my son is my carer and also because buses don’t run after 5pm is desperate for a car to use as am I to get out of my home, what is wrong with my ex wife leasing a car or buying it so that everybody including herself can benefit from it for being taken to the shops work, hospital to see relatives etc. So I feel that a working person who has the available funds should be entitled to have a car if they want it and for other members to share the driving and fueling of that car. I think this arrangement deal is just paranoia, the car will still be insured and the finance company will be paid.

    • Hi Leslie. It’s not bullshit at all, and I think you have got the wrong impression. There is nothing wrong with a person buying & financing a car in their own name and allowing other people to drive it. What would need to happen is that your ex-wife would need to buy, finance and insure the car in her own name. Anyone else driving the car on a regular basis should be named on the insurance policy.

      The accommodation deal policy is aimed at stopping a person financing a car that they have no intention of driving themselves, but are simply financing on behalf of another person who can’t finance under their own name.

    • Wow Leslie. Calling bullshit without knowing your ass from your elbow, nice work. Why don’t you lose the self entitled attitude that seems to come with a benefits handout and use all that spare time that comes from not having a job to think about what you are saying? Your situation sounds like your milking the world anyway so its not surprising you think you deserve car finance as well. Its people like you who make life more difficult for the rest of us who have to work for a living.

    • 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.

  97. Hi Stuart, my partner was coerced into taking on accommodation deal by an ex-boyfriend two years ago. Although this character has paid her on time every month to date, we are worried that he might not continue to do so and we are also concerned about what to do at the end of the contract. I understand that this is a 3-year personal lease agreement (with Mercedes Finance). Ideally we would want to terminate the contract early, but have you any advice?

    • Hi Patrick. If you contact Mercedes-Benz Finance and tell them it’s an accommodation deal, they will probably want to terminate the agreement immediately anyway. However, this may result in them refusing to finance you again if you want another car from Mercedes-Benz. I am assuming that the ex-boyfriend has the car? If you try and terminate the agreement, the finance company will be coming to your partner to collect the car (since it is in her name), so she will need to get it back from the ex to give back to Mercedes-Benz Finance. This is where accommodation deals tend to go horribly wrong if the party with the car (the ex-boyfriend) refuses to return it to the party responsible for the finance (your partner).

      Your options to terminate early will depend on the type of finance agreement in place. If it is a lease, then terminating early usually has high financial penalties. If it is a PCP, you may be able to take advantage of your voluntary termination rights to give the car back, depending on whether or not you have repaid at least 50% of the total amount payable. But you need to have the car in your possession to be able to end the agreement in any case.

    • 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

  98. Hi Stuart. My company has agreed to by me a car for personal use. They are willing to charge me zero % interest, with the monthly installment coming of my salary. The advantage for them is that it secures my services for the duration of the loan. For this transaction to be completed, I need to get hold of a contract that protects both parties. have you ever heard of an arrangement like this and where can I find a contract?

    • Hi James. I haven’t heard of a specific case like this, but it is certainly not uncommon for companies to fund purchases for employees and agree a repayment schedule. I’m surprised that they don’t have a suitable contract templace in place for this sort of thing if they offer it, but a solicitor should be able to get one drawn up for you.

    • Hi Gemma. No, it should be fine; that’s perfectly common. The purpose of accommodation rules are to prevent someone who has failed a finance application seeking someone else to take the finance on their behalf. The only potential issue would be if you or your spouse have already failed a finance application, in which case the finance company may decline a similar application to the other half.

What are your thoughts? Let us know below.