Can I make a joint application for car finance?

Roman Danaev

2 November 2021

A sole application is when an individual submits only their details when seeking car finance in the UK. However, there is the option to file a joint application; if approved, the client will get financing alongside another person.

If you have been considering making a joint application, find out about your chances of approval with the help of our car finance eligibility checker. Read on for more valuable information on the topic.

Who can I apply with?

It is common to apply for joint car finance for married couples or family members. Some lenders may require that both parties live at the same address. It means in some cases, it can be hard for you to get approved. You should consider who you will apply with before going for joint car finance.

How does a joint application work?

The process of submitting is fairly easy. Here is how it goes:

  1. Fill in the application with your own details and submit it.
  2. One of our car finance experts will reach out to you shortly by phone.
  3. Provide the co-signer’s details to complete the joint application.
  4. We will process your request and find the best lenders and car finance deals for you.

While not all 100% of our panel of lenders provide car finance for joint applications, there are still plenty of options. However, be ready to fulfil the lender-specific criteria - for instance, some car finance providers only deal with joint applicants who are registered at the same address as you. But worry not, as you can trust our representatives to carefully guide you through the process of submitting your application.

What’s more, at Carplus, we have a clear understanding that some of our clients turn to joint application car finance due to poor credit history. The good news is that when applying for it with us, you are not putting your credit rating at risk whatsoever. We select lenders who use soft search results when deciding whether to approve or reject a request. Nevertheless, if your application is accepted and you wish to proceed with the offer, you can expect a hard search to be conducted with your consent.

Should I consider a joint car finance application?

Generally speaking, a joint application is an excellent option for a wide range of people who require car finance. For instance, if you happen to have fairly low income yet good credit and your partner has higher earnings, joint car finance is definitely something to consider. It is also a great opportunity for those who have bad credit or are receiving benefits. A co-signer with a better record is likely to improve your application’s chances of success significantly.

Will it affect my credit history?

Joint application is a great option for those with a bad or low credit rating. If you apply with someone with a better credit rating, it will greatly increase their chances of approval for car finance.

By itself, applying for joint car finance together will not affect your credit history in any way. Carplus will do what is called a soft credit search on your profiles and those of your co-borrowers. Unlike a hard search, a soft search leaves no trace on your credit profile.

Joint application vs guarantor finance – which is better?

Joint application and guarantor finance appear to be similar, as both these deals require two co-signers. However, the key distinction is that in the case of joint financing, the responsibility is shared equally between the two people, while in the latter case, the guarantor is only accountable for repayments if the main applicant fails to meet the repayment schedule.

What if one of us can no longer afford the repayments?

In the event of your co-signer being unable to make a timely repayment, you will be expected to cover the instalment. Note that failure to comply with the repayment schedule will affect both partners’ credit scores negatively, even if you are able to pay.

Another possibility is for the individual to apply for a payment holiday. However, such a break is typically granted only in extreme cases.

If accepted, who owns the car?

If your joint car finance application is approved, you are likely to sign a hire purchase agreement. This means that by law, the vehicle belongs to the finance company until you pay off the debt in full.

A car can have one registered keeper, so as soon as the repayment is complete, it typically becomes the property of the primary user. It is the same individual who is the first point of contract for motoring offences and parking tickets.

Advantages and disadvantages of a joint car finance

The major advantage of a joint application is it increases chances of approval and often solves the issue of not being able to be approved for car finance on one’s own, especially when bad credit history is involved.

Yet, the disadvantage of joint car finance application you may encounter is shared debt responsibility between both co-signers and a possible negative impact if the amount is not repaid in full on time.

When should you make a car finance joint application?

As you can see, submitting a joint application often improves your chances of receiving car financing in the UK. Thus, if you have been experiencing difficulties in achieving car finance due to a low credit score, a joint application can help. All you have to do is find a responsible co-signer with a better credit rating and preferably high income. Besides, if you are currently in a relationship and wish to share a vehicle risk-free, joint car finance is worth looking into.

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