No. Car finance must be in the borrower’s name; use joint, co-sign, or guarantor routes instead.
You might want a partner, parent, or friend to sort the money side while you drive the car. Lenders don’t allow that setup. The applicant listed on the credit agreement is the person who owes the debt and is usually expected to be the main keeper and day-to-day user. If you need help, there are safer paths that keep everything above board, protect credit files, and avoid insurance snags.
Can Another Person Arrange Car Finance For You? Rules That Apply
Auto lenders need a clear match between the named borrower and the person using the vehicle. Many contracts say the borrower must be the registered keeper or main driver. A mismatch can trip fraud checks, void insurance, or trigger a demand to settle the balance. The right way to involve someone else is to share responsibility in a way the lender allows.
| Route | How It Works | Who Owes The Debt |
|---|---|---|
| Joint Application | Two applicants apply together and both pass checks. Income can be combined. | Both applicants are fully liable. |
| Co-Signer / Guarantor | Another person promises to pay if the main borrower fails. | Main borrower first; guarantor backs the debt. |
| Company Car Or Lease | Employer or company holds the agreement; you may be the named keeper. | Company (per contract terms). |
| Gift Paid In Cash | Helper gives money; you take the finance or buy outright yourself. | You, if finance is used. |
| “Finance In My Friend’s Name” | Friend takes the credit while you use the car. | Not allowed; risky and likely flagged. |
Why Lenders Say No To “Finance In Someone Else’s Name”
Lenders price risk based on the person who will use the car daily. If that person is not on the agreement, the risk model breaks. To stop those gaps, lenders link borrower identity, keeper status, and insurance data wherever they can. Many agreements also keep legal title with the finance firm until the loan is cleared, so the user can’t sell the car or move it into another person’s name during the term.
Keeper, Owner, And Title
The V5C logbook shows a registered keeper, not legal ownership. On many hire purchase or PCP deals the lender keeps title while payments run. The keeper handles tax, MOT, and daily care, but the lender controls disposal until settlement.
Insurance And “Fronting”
Insurers ask who the main driver is. Listing an older person as the lead driver while a new driver uses the car daily is called fronting. That’s insurance fraud. A claim can be refused and the policy can be cancelled. If a friend carries the finance but you drive, fronting risk rises, since policy data and finance data won’t match. Keep the real main driver as the lead on the policy and add others as named drivers only if they drive now and then.
Allowed Ways Someone Can Help You Get The Car
There are clean routes that lenders accept. Each comes with trade-offs on risk, credit impact, and control of the car. Pick the option that lines up with your budget and your relationship with the helper.
Joint Application
Two people apply together. Both pass affordability and credit checks. Both carry the debt, and either one can be chased if payments stop. Many couples like this route because income combines, which can unlock cheaper rates or a wider choice of models. Set clear rules on who pays, who keeps the car at the end, and what happens if you separate.
Co-Signer Or Guarantor
A trusted person backs your loan. If you miss payments, the lender can contact them and take money from their account once legal notices are served. Their credit file is on the line as well. Treat this like a shared duty: set alerts, share statements, and keep an emergency fund to avoid dragging the guarantor into arrears. The Consumer Financial Protection Bureau explains duties and credit impact in plain terms.
In the UK, lenders must send set notices before seeking money from a guarantor on a regulated agreement. That duty sits in FCA guidance on guarantor lending and default notices.
Company Lease Or Salary Sacrifice
If your employer offers a fleet lease or a salary sacrifice scheme, the company signs the agreement and you become the named keeper and main user. You still follow mileage, damage, and return rules. Leaving the job can trigger an early return bill, so read the exit terms before you join.
Gift Toward Deposit
A helper can gift money toward your deposit. You remain the sole borrower and the main driver. Keep a record of the gift and avoid side deals that imply the helper “owns” the car.
Checks, Paperwork, And Proof You’ll Need
Expect ID checks, proof of address, income documents, and details on your driving use. If you share a deal, both parties supply documents. Keep insurer data in sync with the finance contract to avoid conflicts. The list below helps you prep your folder before you apply.
| Item | Who Provides It | Why Lenders Ask |
|---|---|---|
| Photo ID & Address Proof | Each applicant | Confirms identity and prevents impersonation. |
| Income Evidence | Each applicant | Shows you can afford the monthly bill. |
| Bank Statements | Each applicant | Checks spending and stability. |
| Insurance Details | Main driver | Aligns policy with real use and driver mix. |
| Keeper Info | Intended user | Links the agreement to day-to-day control of the car. |
Quick Scenarios And Outcomes
Parent Wants The Deal In Their Name
Not allowed if the young driver will be the main user. Use a joint deal or a guarantor route. Keep the new driver as lead on the policy to avoid fronting.
Friend Offers To “Help” By Taking The Loan
Walk away. If the friend holds the credit and you run the car, both the finance firm and the insurer can flag it. You could lose the car and face unpaid bills.
Credit File Needs A Boost
A small, affordable agreement in your own name can build a record over time. Pay on time and keep the term sensible. If you need a lift today, ask a trusted person to act as a guarantor and share statements so they stay in the loop.
Red Flags And Risks To Avoid
Steer clear of any plan where a friend takes the finance and you run the car. That setup can breach the contract and can trip anti-fraud checks at insurers. Say no to shady brokers on social apps promising “guaranteed car finance in any name.” Those pitches often mask identity theft or fee scams. If someone has used your details to take a car loan without consent, report it and freeze your credit file.
Mismatched Names Across Paperwork
If the agreement names one person, the keeper another, and the policy a third, claims and collections can turn messy. Keep the same main name on the credit agreement, the V5C keeper record, and the policy lead where the product allows it.
Insurance Fronting And Price Games
Putting an older driver as lead just to cut the price is a bad bet. If the younger driver is the real daily user, list them as main and add others as named drivers. Price will be higher, but cover stands up when it counts.
Strained Relationships
With a joint deal or a guarantor, money stress can spill into a friendship or a family tie. Write down who pays, where the car lives, who approves changes, and your plan if income drops.
Step-By-Step: The Clean Way To Get Help
1) Map The Budget
Price the car, the deposit, the term, and the mileage or balloon. Add tax, MOT, servicing, and tyres. Leave room for a rainy day fund. If a helper joins, show them the math so trust stays intact.
2) Pick The Structure
Choose between a joint deal or a guarantor based on credit strength and how much control you want to share. A joint deal gives each person equal say. A guarantor keeps you as the sole driver on paper but asks your helper to back you.
3) Align The Paper Trail
Match names across the credit agreement, keeper record, and policy. Keep copies of all statements. If your helper is a guarantor, set alerts so they see any missed bills on day one, not month three.
4) Lock Insurance The Right Way
Set the true main driver as lead on the policy. Add other drivers only if they use the car now and then. Fit a tracker or dashcam if your insurer gives a rate cut for it.
5) Review Terms Before You Sign
Read fees for late payment, early settlement, mileage caps, and hand-back rules. Many lenders keep title until the end, so returns and trade-ins follow set steps. Keep copies of emails and payment receipts.
Sources You Can Trust
For co-signing basics, the CFPB page is clear—see co-signer guidance. For keeper rules, the police FAQ explains that a V5C shows the keeper, not legal ownership—see registered keeper vs owner. UK guarantor lending sits under set notice rules from the FCA.
Bottom line: you can’t pass the finance to a friend while you use the car. Use a joint deal, a guarantor, or a company scheme, line up the paperwork, and keep policy data true to real life.
External references used in this guide were checked on the date of writing. Terms and product names may vary by lender. Always read the latest agreement you are offered. Save copies.