Joint Car Finance

Joint Car Finance – Everything You Need To Know.

If you’ve been refused car finance, a joint car finance application could help you get approved! Applying with a partner or co-applicant can sometimes make it easier to secure the finance you need. However, it’s important to understand how joint applications work and to consider different finance scenarios before committing. Let’s take a closer look at how joint car finance applications could work for you and what you need to know to increase your chances of approval.

How Does Joint Finance For A Car Work?

A joint car finance application is when two people apply for finance on the same vehicle. During the application process, a soft credit check is carried out on both applicants. Soft checks do not affect either person’s credit score, unlike hard credit searches. It’s important to remember that with joint car finance, both applicants are legally responsible for keeping up with repayments. If either party misses payments, it could have a negative impact on both credit files.

Should I Consider a Joint Car Finance Application?

A joint car loan can be a great choice for a wide range of car finance applicants. For example, people who have a low income but good credit could consider taking out a joint application if their partner had a higher income. Alternatively, if you are worried about getting accepted for bad credit car finance then using a co-signer with good credit and income, could strengthen your application and help get you approved! You can also consider joint finance if you receive benefit income and you want to maximise your chances of being approved for car finance.

Can You Get Joint Finance On a Car? 

Applying for joint finance for a car can be really beneficial, and we’ve helped many customers in the past get the car they want with a joint car finance deal in place! Just like any other finance package offered by our fantastic UK lenders, joint car finance is subject to status, and you’ll need to secure approval first. When you apply for a joint car loan with us, we’ll only perform a soft search credit check on you both and take into consideration things like affordability, living situation and license type. Once you’ve found the perfect lender and you’re happy with the proposed deal, you can then choose a car within your budget from ANY trusted dealership across the UK.

Can I Finance a Car For Someone Else?

No, it’s not actually possible to finance a car for someone else. Most lenders require the person whose name is on the finance agreement to be the primary driver of the vehicle. If you want to apply for finance on behalf of someone else, you may need to be listed as a co-applicant or guarantor, meaning you share legal responsibility for the repayments. This ensures that the lender has security while giving the intended driver the opportunity to use the car. Always discuss your options with a finance expert, such as ourselves, to make sure the arrangement is suitable and that both parties understand their responsibilities.

Who Owns The Car? 

When you take out a joint car finance agreement, you’ll need to decide who will be the primary user of the car, as they will be recorded as the registered keeper. The registered keeper is responsible for insurance, road tax, MOT, and servicing, but this does not necessarily make them the legal owner of the vehicle.

Our lenders offer both Hire Purchase (HP) and Personal Contract Purchase (PCP)—both are forms of secured finance. This means that during the agreement, the car is technically owned by the finance company. The lender buys the car from the dealer on your behalf, and you make monthly repayments directly to them. As a car finance broker, we don’t lend money ourselves; instead, we work to find the best lender and the most competitive interest rate for your situation. Once the agreement ends and all payments have been made, ownership of the car is transferred to the main driver.

Are There Any Disadvantages Of Joint Car Loans? 

Taking out a joint application means that you are both responsible for the repayment schedule and will become financially linked. If you fail to make the payments, both of your credit files will be negatively affected. Being financially linked to someone with bad credit can negatively affect your credit score in the future. If you have taken out a joint application in the past, but no longer have any active credit, then it’s best to disassociate yourself. You can do this by contacting the credit referencing agency who supplied your credit report and ask for the associate to be take off your credit file. 

Joint Application vs. Guarantor Finance – Which is Best?

In some ways, a joint application and a guarantor finance deal are similar. Both finance deals require the signature of two people to complete the agreement. The main difference is that a joint application is for two people who are looking for a loan together and they are both equally responsible for making the repayments. A guarantor car finance deal, on the other hand, is when the applicant is solely responsible for the repayments. The finance deal gets accepted with the support of a guarantor or co-signer. This person is responsible for meeting the repayment schedule if the main applicant fails to do so.

Find out more about guarantor car finance here.