Joint car finance application

Can I make a joint car finance application?

YES! Refused Car Finance can provide joint car finance applications to customers struggling to get approved for car finance. If you want to get approved for car finance, a joint application could be your right choice! There are a few things to be aware of when applying for a joint car finance application, and you should consider a few different finance scenarios before you commit to a joint application. First, let’s find out more about how joint finance applications work!

How does a joint car finance application work?

A joint application is when two people apply for used car finance on the same vehicle. Upon application, a soft search credit check will be completed on both applicants. A soft search does not impact either person’s credit file, unlike a hard search. Joint finance means that both applicants are legally responsible for meeting the repayment schedule. If both parties fail to meet the repayment schedule then their credit files could be negatively affected.

Should I consider a joint car finance application?

A joint application 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 car 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 deal 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.

Who owns the car? 

When you get a car on joint finance, you’ll need to decide who will be the primary user of the car as they will need to be recorded as the registered keeper. The registered keeper is responsible for the cars’ insurance, road tax, MOT and servicing but isn’t always the legal owner of the car. 

Our lenders can offer both Hire Purchase and Personal Contract Purchase, which are both forms of secured loan. This means that during the agreement, the car is owned by the finance company. The lender buys the car from the dealer on your behalf, and you make monthly payments back to the lender. We are a car finance broker, which means we don’t lend you any money, and instead work to find you the best lender with the lowest interest rate. Once the deal has come to an end and all payments has been made, the ownership of the car will be passed to the main driver. 

Are there any disadvantages to applying for finance with someone else? 

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. 

Joint application vs. guarantor finance – which is better?

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.