Car Finance - Can I Help a Friend?
Discussion
My friend took out a finance agreement for someone else. The other guy set up a standing order into his bank account to cover the repayments.
Worked fine for 6 months, before this chap got bored with the car, handed it to my friend and cancelled the payments.
My friend was not a wealthy chap and struggled like hell to cover the repayments. It was another 2 years before he could hand it back and walk away from the finance agreement.
Trust nobody, especially with money.
Worked fine for 6 months, before this chap got bored with the car, handed it to my friend and cancelled the payments.
My friend was not a wealthy chap and struggled like hell to cover the repayments. It was another 2 years before he could hand it back and walk away from the finance agreement.
Trust nobody, especially with money.
Sorry OP, but I am also unable to offer positive advice.
I have helped friends out in the past, and lost both money and friends. I have also helped (and retained) a friend ONCE.
As others have said, so long as you can afford (and don't mind) to lose the money, do it, otherwise stay away.
P.S. I would personally NOT consider it for something unnecessary like a new car. I have done it on the past to save friends who were on the point of losing their house.
I have helped friends out in the past, and lost both money and friends. I have also helped (and retained) a friend ONCE.
As others have said, so long as you can afford (and don't mind) to lose the money, do it, otherwise stay away.
P.S. I would personally NOT consider it for something unnecessary like a new car. I have done it on the past to save friends who were on the point of losing their house.
Tiger
As far as the finance agreement is concerned, unfortunately no, you won't be able to stand as a guarantor as (with most uk finance companies) you generally have to be related to the proposee in some way.
Whether your friend is suggesting that you take the finance in your own name and he'll pay you monthly; that's a different matter and certainly not a route I would consider taking. You'd need to personally be comprehensively insured on the car as the lessee of the vehicle, and should the finance company find out that it's an accommodation deal then they are well within their rights to repossess the car. Not something you want on your own credit file.
Richard
As far as the finance agreement is concerned, unfortunately no, you won't be able to stand as a guarantor as (with most uk finance companies) you generally have to be related to the proposee in some way.
Whether your friend is suggesting that you take the finance in your own name and he'll pay you monthly; that's a different matter and certainly not a route I would consider taking. You'd need to personally be comprehensively insured on the car as the lessee of the vehicle, and should the finance company find out that it's an accommodation deal then they are well within their rights to repossess the car. Not something you want on your own credit file.
Richard
Where are people getting the notion that the friend can't afford it?
The OP has said that he can't get finance and everyone is subsequently assuming he has adverse credit.....
Maybe the friend can't get finance for another reason such as recently going self employed? May be he's not a homeowner or UK resident perhaps? There are lots of hoops you need to jump through to be able to get finance these days.....
The OP has said that he can't get finance and everyone is subsequently assuming he has adverse credit.....
Maybe the friend can't get finance for another reason such as recently going self employed? May be he's not a homeowner or UK resident perhaps? There are lots of hoops you need to jump through to be able to get finance these days.....
Can you afford the car on your own?
Why not get the finance set up in your name, ownership in your name, just let him drive it and make sure he sets up a standing order into your account to cover the repayments.
If it does turn sour, at least you own the car and can sell it to recover some costs.
This does require a huge amount of faith in said friend to keep paying though.
Why not get the finance set up in your name, ownership in your name, just let him drive it and make sure he sets up a standing order into your account to cover the repayments.
If it does turn sour, at least you own the car and can sell it to recover some costs.
This does require a huge amount of faith in said friend to keep paying though.
DocArbathnot said:
the golden rule with friends and money is to regard it as a gift. If the money comes back that's a bonus!
If you really want to do this take a loan out and give them the money. If you're not prepared to this then you have your answer, do not get involved with finances.
If you really want to do this take a loan out and give them the money. If you're not prepared to this then you have your answer, do not get involved with finances.
littlebasher said:
Trust nobody, especially with money.
Davel said:
If you help a friend out financially - often the relationship soon changes.
I wouldn't recommend it either.
This, this and this.I wouldn't recommend it either.
I lost my best friend of 20 years who I thought I knew inside out over a large sum of money that he and his bird needed for a house deposit.
People act really weird when it comes to money, even people who you think you know really well like close family and long term friends. Just DO NOT get involved. Make up any excuse you can to avoid the topic and certainly DO NOT ever make them any offers because it will only end in a whole world of hurt. I would literally do anything to be able to turn the clock back and get my best mate back but the damage is done now and there's no going back. It's one of life's very painful lessons..
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