Can Car Finance Be In Someone Else's Name?

Wondering if you can apply for car finance for someone else? Or vice versa? 🤔 Before making any decisions, it’s best to ask: "can car finance be in someone else’s name?" Some people do apply for car finance for another person. For example, parents may do this to help their child buy their first car. There are also situations where a relative needs help because they don’t have an excellent credit score. 

If you’re wondering, “can I get car finance in someone else’s name?” and worrying if you’re going to break the law, the truth is that you won’t. However, what you will be breaking would be the terms and conditions of the car finance company. This practise is frowned upon and could still get you into trouble. 

So, the short answer to the question, “can car finance be in someone else’s name?” is yes. However, it’s not the best way to buy a car. You’re just going to put yourself at risk and you may find yourself dealing with a lot of problems. So before you get car finance for someone else or ask another person to get financing for you, here’s what you need to know.

What is Accommodation Finance?

Accommodation finance is the term that financing companies use when a person applies for car finance that’s really going to benefit another individual. Frankly, lenders don’t like this setup. But what’s wrong with it if you can pay the person for the loan, right? It’s not that easy. You have to understand how finance companies run their business. 

Financial institutions deal with risks every time they grant someone a loan like a car finance deal. And before they approve an application, lenders have to take into consideration so many factors such as your personal information, employment status, living arrangements, financial situation, and credit history. 

The finance company has a team that looks into the submitted information so they can decide if the applicant will be given a loan. Along with that, they also have to set the interest rate that comes with the loan they’ll offer you. If the applicant is seen as high risk, the lender can refuse the loan or charge a higher interest rate. 

Reasons Why Accommodation Finance Happens

Usually, when a person tries to get car finance by asking another individual to apply for him or her, it’s because they don’t meet the qualifications set by the lender. So the one who’ll try to get financing most likely has a better credit score, employment history, financial status, and so on. 

What happens here if the lender approves this application is that the car finance deal won’t be a match for the person who’ll be using the vehicle. Essentially, the measures that the lender puts in place so that the level of risk is appropriate are being side-stepped. They based the car finance deal they offered on the details of a person who’s not the one who’ll drive the vehicle and pay the loan. 

Problems with Accommodation Deals

What happens if you still get an accommodation deal and the finance company grants you car financing? You may have to brace yourself for possible problems that may arise once you have your vehicle. 

The person who applied for car finance on your behalf is usually a relative, friend, or partner. All’s well as long as your relationship with that person is also okay. However, what if that relationship breaks down? If that person is the one paying the loan, they might cease making payments and that means the lender may repossess your vehicle. 

As you may already know, relationships are not always stable. If something goes wrong with your relationship with that person, you don’t only lose your car but also someone you care about. Before you enter into an accommodation deal, consider that the person who’ll apply for car financing might get trapped in a huge financial responsibility that isn’t actually theirs.

Avoid the Risk of Fraud

While it’s true that this setup of asking someone else to apply for car finance on your behalf doesn’t break the law, it’s a fraudulent act. Keep in mind that the car finance package requires one to sign a statement that he or she will be the one driving the vehicle. 

If you asked another person to get car finance for you, then you’re also asking them to commit fraud by false representation. If the person is found guilty of this, then it will negatively impact their ability to get credit. It may even make it difficult for them to pursue certain employment opportunities. All the risks and problems are definitely not worth it. 

Can I Transfer the Agreement to Another Person?

In situations where a person can no longer keep up with the monthly payments and wants to transfer the car finance agreement to another person, it’s still not possible. It’s because the lender assessed the applicant’s financial situation and granted the appropriate car finance package. If it were to be transferred to another person, then his or her financial situation is different from the applicant, and therefore, the package may not be appropriate for him or her. 

The step that can be taken would be for the other person to apply for their own car financing. That’s the only way to go about it. If you try to take any shortcuts just to get what you want the “easier” way, then you might find yourself in so much trouble with the lender and with the law. It’s simply not worth the risk. 


To recap, can you buy a car on finance for someone else? You can. But the real question is, should you? Knowing all the risks involved when you enter an accommodation deal, you’d think twice before signing a car finance contract for someone else. Also, if you’re asking another person to take a loan on your behalf, you’re putting them at risk of getting trapped in tremendous debt that isn’t theirs. 

The best way to get car finance is always to do it the right way. Even if it may be longer or stricter, this is the safest route. Car financing can be a much easier process these days. Check if you can get car finance with Carmoola by downloading the app today!

You'll know the result within seconds of completing a few questions and a quick ID check. It's all very quick and easy and you might find that you actually qualify with no problem, and don't have to consider asking someone else to do this! 😄