Do you have to take out finance in your own name?
Looking for finance and wondering if you have to take it out in your own name? Here is everything you need to know about car finance and who can put their name on the agreement!
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First of all, in short, you cannot take out car insurance on behalf of someone else.
While it isn’t illegal, finance companies will not be on board with these agreements, due to it being what is known as an accommodation deal. This means that there is going to be a different person owning and driving the car, to the one who is actually paying for it. This is a risk for the finance company as the chances of being paid or getting the car back are slimmer than if the agreement was in the correct persons name.
However, you can add another person to your finance agreement in the form of a guarantor. A guarantor is someone who will agree to pay the finance agreement for you if you fail to keep up with repayments.
A guarantor is a good option for those who are worried they will not be accepted for car finance, and are concerned about the process. It is usually a member of the family or a close friend who will co-sign the agreement, and it can mean you get better rates on a finance deal, or you can get accepted when you otherwise wouldn’t have.
Finance is not the right option for everyone and if you do not think you can keep up with repayments then it is probably not the option for you. However, we know some things are out of your control and so, a guarantor on your agreement could be that extra safety net or peace of mind that you need.
To find out more about guarantor car finance, and used cars in Derby, come and speak to a member of the team at Hilton Garage.