In this scenario, both applicant’s incomes are combined and both parties are responsible for the monthly payments.
You can only take out a joint application for car finance with someone who is living at the same address as you (such as a partner or parent) and approval is dependent on the credit scores and incomes of both applicants. It’s also worth noting that if you and your partner spilt up before the end of the contract agreement, the payments must still be made otherwise the credit scores of both parties can be negatively affected.
Not all finance providers accept joint applications so it’s worth checking with your sales consultant before considering this option. To discuss whether you are eligible for a joint application, call us on 0345 811 9595.
Can I use a guarantor?
Another finance alternative which may be available to you is to use a guarantor as part of your application. A guarantor is a third party who is responsible for the car finance payments if the main applicant defaults. In the vast majority of cases, a guarantor will need to be a family member (such as a parent, aunt or uncle) and will need to have a strong personal credit file. Most guarantors need to be homeowners and can't be financially linked to the borrower – such as a spouse.
As a general rule, most finance providers will not accept a guarantor when applying for vehicle finance but this is dependent on the funder and is dealt with on a case-by-case basis. It’s also worth noting that if the monthly rentals are not received in a timely manner, the credit score of both parties (the applicant and the guarantor) can be affected.
To discuss whether you are eligible to use a guarantor as part of your application, call us on 0345 811 9595.
Can someone else lease a car for me?
Finally, if you are a new driver with little to no credit history, it may seem desirable for a third party to take out a lease agreement on your behalf. This is also known as accommodation finance.