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Car finance ›
Can you finance a car for someone else?
Updated: Monday, 18 September 2023
If you have bad credit, you might be wondering if you can apply for car finance on behalf of someone else, like a family member or someone you live with.
Applying for car finance for someone else is known as ‘fronting’, which is illegal. It is also illegal for someone else to finance a car for you.
Keep reading to learn exactly why you can’t finance a car for somebody else, and the options you might want to consider if you’re looking for a car finance agreement.
What is accommodation finance?
You may have heard of ‘accommodation finance’, which is a term used for taking out finance for somebody else in your name. You might also know this as ‘fronting’, and it is illegal because it is a form of fraud.
Being found guilty of fronting could have serious consequences.
Why can’t I take out car finance for someone else?
Each car finance application depends on several personal factors that won’t apply to anyone else. Think of it this way, everyone is different. We all have different jobs, needs, and personal circumstances. Everyone’s eligibility for car finance is different.
When you apply, the lender will carry out checks to assess whether you can afford to make the repayments. Some of the factors include affordability and credit score. If you tried to apply for someone else, your application would be misleading because the lender can’t make sure the agreement is affordable.
Can you swap car finance into someone else’s name?
Switching car finance to someone else is also not possible.
As mentioned above, the lender will grant a car finance agreement based on the applicant’s credit history and income. This cannot be switched to someone else’s name, as their circumstances will probably be very different.
If you’re no longer able to afford your repayments, contact your lender, who will go through each of your options. We’ve also written a guide to ending car finance early, which explains some of the possible options.
Can I apply for finance with someone else?
If you’re looking to apply with someone else, you could make a joint car finance application. This is where the circumstances of both you and your partner – spouse, mum, dad, or whoever you are applying with – are considered. If the person you are applying with has a better income or credit score than you, then this may help your chances.
This would result in both parties having equal responsibility for the vehicle and the repayments.
Joint car finance agreements will typically have some restrictions in place. If you decided to make a joint application with us, you and the person you are applying with must live at the same address.
You might have heard of guarantor car finance. We don’t offer this, but it involves the use of a ‘guarantor’, who is responsible for paying the agreement if you can’t make the repayments.
What if I have bad credit?
If you or someone you know is looking for car finance but has less-than-perfect credit, don’t worry.
You might need to use a specialist lender, such as Moneybarn, to get bad credit car finance. We help thousands of customers each month onto a better road ahead. We understand that just because you have bad credit, it doesn’t change the need to have a reliable car to get around. We might be able to help you, even if you’ve been refused car finance elsewhere.
Representative 30.5% APR.
If you have had financial problems in the past, it may affect whether a lender offers you a finance agreement. Issues that can affect your credit score include:
- IVA – Individual Involuntary Agreements (IVAs) are legally binding agreements between you and your creditor, which are put in place to ensure you pay debts back over a set period. However, it is still possible to get car finance with an IVA.
- CCJ – A County Court Judgment (CCJ) comes into place when you have been taken to court by a creditor after failing to pay them back for what you owe.
- Missed payments – Missed payments and falling into arrears can negatively affect your credit score. Find out what happens if you don’t pay your car finance.
How to improve your chances of getting car finance
If you are concerned about how likely you are to be accepted for a car finance agreement, don’t worry, there are a few steps you can take that might help:
The first thing you could do is check your credit report with each of the credit reference agencies (Experian, Equifax, and TransUnion) to see if you have a good credit score.
If your credit score could be better, you might want to take some steps to improve your credit score before you apply. You’ll also want to make sure that you’ve researched potential lenders.
Before applying, you could use a car finance calculator to see what your finance agreement might look like. Enter the amount you are looking to borrow, and for how long, and it will give you a rough idea of your budget.
FAQs about financing a car for someone else
Can my mum or a family member get car finance for me?
No, your family cannot take out a car finance agreement for you. If you have limited or no credit history, you might find it tricky to find a lender who will offer you a car finance agreement.
We go a little deeper into how difficult it is to get approved to finance a car in our guide, which you might find useful.
Can my girlfriend or partner get a car on finance for me?
No, your partner can’t apply for car finance on your behalf. This would also be classed as ‘fronting’ and is illegal.
However, you might consider making a joint car finance application if you and your partner live at the same address. Find out more in our guide to joint car finance.
If you have bad credit, you might be wondering if you can apply for car finance on behalf of someone else, like a family member or someone you live with.
Applying for car finance for someone else is known as ‘fronting’, which is illegal. It is also illegal for someone else to finance a car for you.
Keep reading to learn exactly why you can’t finance a car for somebody else, and the options you might want to consider if you’re looking for a car finance agreement.
What is accommodation finance?
You may have heard of ‘accommodation finance’, which is a term used for taking out finance for somebody else in your name. You might also know this as ‘fronting’, and it is illegal because it is a form of fraud.
Being found guilty of fronting could have serious consequences.
Why can’t I take out car finance for someone else?
Each car finance application depends on several personal factors that won’t apply to anyone else. Think of it this way, everyone is different. We all have different jobs, needs, and personal circumstances. Everyone’s eligibility for car finance is different.
When you apply, the lender will carry out checks to assess whether you can afford to make the repayments. Some of the factors include affordability and credit score. If you tried to apply for someone else, your application would be misleading because the lender can’t make sure the agreement is affordable.
Can you swap car finance into someone else’s name?
Switching car finance to someone else is also not possible.
As mentioned above, the lender will grant a car finance agreement based on the applicant’s credit history and income. This cannot be switched to someone else’s name, as their circumstances will probably be very different.
If you’re no longer able to afford your repayments, contact your lender, who will go through each of your options. We’ve also written a guide to ending car finance early, which explains some of the possible options.
Can I apply for finance with someone else?
If you’re looking to apply with someone else, you could make a joint car finance application. This is where the circumstances of both you and your partner – spouse, mum, dad, or whoever you are applying with – are considered. If the person you are applying with has a better income or credit score than you, then this may help your chances.
This would result in both parties having equal responsibility for the vehicle and the repayments.
Joint car finance agreements will typically have some restrictions in place. If you decided to make a joint application with us, you and the person you are applying with must live at the same address.
You might have heard of guarantor car finance. We don’t offer this, but it involves the use of a ‘guarantor’, who is responsible for paying the agreement if you can’t make the repayments.
What if I have bad credit?
If you or someone you know is looking for car finance but has less-than-perfect credit, don’t worry.
You might need to use a specialist lender, such as Moneybarn, to get bad credit car finance. We help thousands of customers each month onto a better road ahead. We understand that just because you have bad credit, it doesn’t change the need to have a reliable car to get around. We might be able to help you, even if you’ve been refused car finance elsewhere.
Representative 30.5% APR.
If you have had financial problems in the past, it may affect whether a lender offers you a finance agreement. Issues that can affect your credit score include:
- IVA – Individual Involuntary Agreements (IVAs) are legally binding agreements between you and your creditor, which are put in place to ensure you pay debts back over a set period. However, it is still possible to get car finance with an IVA.
- CCJ – A County Court Judgment (CCJ) comes into place when you have been taken to court by a creditor after failing to pay them back for what you owe.
- Missed payments – Missed payments and falling into arrears can negatively affect your credit score. Find out what happens if you don’t pay your car finance.
How to improve your chances of getting car finance
If you are concerned about how likely you are to be accepted for a car finance agreement, don’t worry, there are a few steps you can take that might help:
The first thing you could do is check your credit report with each of the credit reference agencies (Experian, Equifax, and TransUnion) to see if you have a good credit score.
If your credit score could be better, you might want to take some steps to improve your credit score before you apply. You’ll also want to make sure that you’ve researched potential lenders.
Before applying, you could use a car finance calculator to see what your finance agreement might look like. Enter the amount you are looking to borrow, and for how long, and it will give you a rough idea of your budget.
FAQs about financing a car for someone else
Can my mum or a family member get car finance for me?
No, your family cannot take out a car finance agreement for you. If you have limited or no credit history, you might find it tricky to find a lender who will offer you a car finance agreement.
We go a little deeper into how difficult it is to get approved to finance a car in our guide, which you might find useful.
Can my girlfriend or partner get a car on finance for me?
No, your partner can’t apply for car finance on your behalf. This would also be classed as ‘fronting’ and is illegal.
However, you might consider making a joint car finance application if you and your partner live at the same address. Find out more in our guide to joint car finance.
For a better road ahead
Moneybarn is a member of the Finance and Leasing Association, the official trade organisation of the motor finance industry. The FLA promotes best practice in the motor finance industry for lending and leasing to consumers and businesses.
Moneybarn is the trading style of Moneybarn No. 1 Limited, a company registered in England and Wales with company number 04496573, and Moneybarn Limited, a company registered in England and Wales with company number 02766324. The registered address for these companies is: Athena House, Bedford Road, Petersfield, Hampshire, GU32 3LJ.
Moneybarn’s VAT registration number is 180 5559 52.
Moneybarn Limited is authorised and regulated by the Financial Conduct Authority (Financial Services reference No. 702781)
Moneybarn No. 1 Limited is authorised and regulated by the Financial Conduct Authority (Financial Services reference No. 702780)
