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Can I Apply for Car Finance with My Partner?

Building a life with your partner is a truly amazing feeling. It can be exhilarating and thrilling, but also stressful and trying! Moving in together, getting a joint account, sharing daily tasks and spendings… And then getting your next car together! 😍 But is that really possible? Can you apply for car finance with your partner? Let’s explore! 

Can You Apply for Joint Car Finance?

So is it possible to apply for car finance in joint names? Here’s the short version of the answer: yes, you can take out a car loan under joint names. You may find that the process for doing so varies from lender to lender and that some car finance providers don’t approve joint applications. Let’s dive deeper into this. 

Who Can I Apply for Joint Car Finance With? 

There aren’t actually any restrictions on who you can apply for joint finance with, though it’s most commonly seen with married couples or partners. Do be aware that some lenders will only let you apply as a couple if you both live at the same address, so you might want to only consider financing a car with someone if you live together. 

How Does a Joint Car Finance Application Work?

The first thing you will want to do in order to apply for a joint car loan is send in an application for your own details. Some lenders will also let you send in a joint application from the get-go, though you’ll find that most lenders prefer going down the initial solo application route, and will then contact you to collect the second party’s information. Not all lenders accept joint applications, and some of them only accept your joint car finance application if you meet certain criteria, like:

  • You’re both over 18 years old
  • You’re both no longer in full-time education
  • You’re both UK residents
  • You both live at the same address

What if One of Us Can’t Afford the Repayments?

No matter which circumstances you’re in, you’ll be expected to pay the full amount of your repayments each month. Missing repayments will affect both your credit scores, so you should only take out car finance if you’re positive you can cope with the expense. If your partner fails to pay their part, you’ll be responsible for the entirety of the loan amount, and vice versa. This is called joint and several liability.

How Will a Joint Car Finance Application Affect My Credit Score?

When people have a low credit score, we usually advise them to make a joint application, because applying alongside someone that has a higher credit score will significantly increase their chances of getting approved for the loan. Meanwhile, a joint car finance application won’t particularly affect your credit score, more than a solo application will. 

Your credit score will only be affected if you make too many applications in a short period of time because lenders will have performed several hard credit searches (as opposed to soft searches) to assess your affordability. An alternative to this is to ask for pre-approvals, or decisions in principle, which only incur soft checks from lenders. You’ll then be able to shop around for the best deal without it impacting your credit score. Your credit score will also be affected if either one of you fails to make timely repayments each month, until the end of your loan term

Is Joint Financing Available for All Types of Car Finance?

Yes, joint car finance is generally available on all different types of agreements, such as:

However, you will find that lease car joint financing is much rarer, and if your lender is inclined to it, the offer will be aimed more towards young drivers who need the help of a parent or guardian to take out car finance. If you need help figuring out the different types of car finance, we’ve got a detailed guide on the matter!

The Advantages and Disadvantages of a Joint Application

Just like all things car finance, it’s really important to know the advantages and disadvantages of each option before making any decisions. Let’s go over the advantages and disadvantages of a joint application. 

The advantages of applying for car finance with your partner: 

  • A joint application has the power of increasing your chances of being approved, especially if your partner has a better credit score than you. 
  • It will make it easier for you to get a loan if you have a good income but a low credit score, and vice versa for your partner. 
  • It will officially divide the cost of a car between you and your partner, and you will both be legally responsible for the payments. 

The disadvantages of applying for car finance with your partner: 

  • Both yourself and your partner will be responsible for the debt, you’ll both be liable. 
  • Both your credit scores could be impacted if you were to miss any payments. 
  • If you break up, you’ll still stay responsible for these payments, unless you terminate your car finance agreement. 

Can Car Finance Be in Joint Names?

In the UK, a car can only have one registered keeper, which will be the primary user of the car. This person will be the point of contact for offences or parking tickets. The other partner will be registered as a secondary user. However, do bear in mind that in most car finance agreements, the car legally belongs to the finance provider until you’ve both paid your loan off entirely. 

Can You Get a Car Finance Joint Application Online Instant Decision? 

With a traditional lender, you’ll have to wait a few weeks before you can get a decision. However, with online car finance providers such as Carmoola, you can get a decision within minutes! Here’s our process:

Step 1: Get a budget for your next car with our car finance calculator, to find out how much you can spend in just 60 seconds. 

Step 2: Verify your identity without having to dig out bank statements or utility bills: we use the latest technology for a paperless experience. It’s a safe, secure, swift, and fully digital experience. 

Step 3: You tell us about your new ride and then run a free history check to have peace of mind knowing that you’ve chosen a great car.

Step 4: You pay with your Carmoola card, online or in a showroom - it’s accepted at all online car-buying websites, and 1,000's of reputable dealerships.

Download Carmoola today and get your car finance sorted in a few minutes! We can’t wait to help you get your dream car! 🚗☀️

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