Car finance without a driving licence?

[chelle77]

Hi there,

 

My partner moved in with me in may last year and along with him came his volkwagen polo which is on HP through Black horse last february.

 

His mum got the HP in her name as my boyfriend wasnt able to get credit. Now that he has moved in with me and my 3 children we have decided we need a bigger car.

 

He went back to Manchester over the weekend and went car hunting with his mum and found a bigger car. It worked out that the car he has now is worth £600 more than the one he has seen so its worked our pretty well price wise.

 

The problem he has encountered now is that for some reason the car finance companies that the car dealer is using will not touch his mum without a licence......one of them being Black Horse who she took out a HP agreement with last february. Can anyone think why the reason for this would be? she has excellent credit and my boyfriend has always kept up with putting the payments into his mums account so that Black Horse are always paid on time.

 

Any advice is appretiated thanks

[MrShed]

I can think of a lot of reasons.

 

The first one is for exactly the reasons you are doing - to stop someone from taking out credit for someone else, as this could be higher risk without them knowing about it.

 

Also, insurance reasons - generally speaking, the purchaser of the car gets I believe a 3 day insurance window gratis on purchase, to allow them to drive away without having insurance in place.

[chelle77]

Thanks for your reply but what i am not understanding is, why would Black Horse refuse finance on the new car being that the payments stay exactly the same, the car that he is trading in is in positive equity and when the finance was taken out last february on the car that my boyfriend is presently driving was financed by his mother who has no driving licence, yet when the car dealer tried to go through Black Horse again for the new car is was a no as she does not have a licence even though she is already with them for the car my boyfriend has now.

 

Thanks

[MrShed]

Policy change? Changes do occur from time to time.

[chelle77]

Ahhhh right thats a good point, are customers supposed to be informed of such important policy changes?

[MrShed]

Why? It wouldnt affect an existing customer.

[chelle77]

Well i thought it would have she wants to re-finance the car?

[MrShed]

Yes, but that doesnt make it affecting an existing customer. You are effectively a new customer, in much the same way that going back to Tesco twice doesnt make you an existing customer - there is no single persistant contract, therefore no single ongoing customer/company relationship across the two transactions.

[missdpd]

Having used to work for BH, it has always been company policy to ask for the driving licence as proof that the person obtaining HP is elegible to drive. Your boyfriends mum was just lucky first time in that whoever checked all the paper work failed to ask for the driving licence and now new finance has been arranged, the driving licence is being asked for.

[sailor sam]

Also, insurance reasons - generally speaking, the purchaser of the car gets I believe a 3 day insurance window gratis on purchase, to allow them to drive away without having insurance in place.

 

Don't know where you get that from! There is no exemptions in place for not having insurance in place. The buyer needs to be insured before he can drive it off the forecourt.

 

__________________

Please Note

 

The advice I offer will be based on the information given by the person needing it. All my advice is based on my experiences and knowledge gained in working in the motor and passenger transport industries in various capacities. Although my advice will always be sincere, it should be used as guidence only.

 

I would always urge to seek professional advice for clarification prior to taking any action.

 

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[MrShed]

Don't know where you get that from! There is no exemptions in place for not having insurance in place. The buyer needs to be insured before he can drive it off the forecourt.

 

I am aware of that thanks.

 

What I meant to say was that the dealer will insure the car for three days for you. They cannot do this if you have no licence.

[sailor sam]

I am aware of that thanks.

 

What I meant to say was that the dealer will insure the car for three days for you. They cannot do this if you have no licence.

 

Erm, in principle they could. But it is normally down to the buyer to arrange the insurance. I have never heard of a dealer arranging short term insurance in this way. In any event, to complete a deal of a new car (or second hand) from a reputable dealer will involve the buyer to have a full driving licence.

 

__________________

Please Note

 

The advice I offer will be based on the information given by the person needing it. All my advice is based on my experiences and knowledge gained in working in the motor and passenger transport industries in various capacities. Although my advice will always be sincere, it should be used as guidence only.

 

I would always urge to seek professional advice for clarification prior to taking any action.

 

Please click my scales at the bottom of my profile window on the left if you found my advice usefull.

[crem]

Erm, in principle they could. But it is normally down to the buyer to arrange the insurance. I have never heard of a dealer arranging short term insurance in this way. In any event, to complete a deal of a new car (or second hand) from a reputable dealer will involve the buyer to have a full driving licence.

 

Generally they don't actually "arrange" the insurance for you, but most of them have access to an insurance company that offers you "7 days free cover" . All it takes is for you to ring the insurance company using the phone number the dealer gives you, you quote the dealers reference number, and they give you a quote for your years insurance. you don't have to accept it (either then or later) but they email an instant cover note to the dealer for 7 days free cover. The dealer then uses this insurance document to tax the car in your name ready for collection.

 

I use this service every time I am buying a new car which then gives a nice overlap giving you time to move your own insurance over onto the car.

[patdavies]

In any event, to complete a deal of a new car (or second hand) from a reputable dealer will involve the buyer to have a full driving licence.

 

 

There is no requirement for a car owner (or even an RK) or buyer to hold a driving licence.

[crem]

There is no requirement for a car owner (or even an RK) or buyer to hold a driving licence.

 

true, but where this seems to come into play is when you are buying the car using their finance deals. They then insist the person borrowing the money is also going to be the RK and also is the named policy holder for the insurance. These additional things do therefore require the buyer to hold a driving licence.

[sailor sam]

There is no requirement for a car owner (or even an RK) or buyer to hold a driving licence.

 

Ok, maybe I should have been more clear; only if the buyer intends to actually drive the car him/herself will require them to have a licence.

 

__________________

Please Note

 

The advice I offer will be based on the information given by the person needing it. All my advice is based on my experiences and knowledge gained in working in the motor and passenger transport industries in various capacities. Although my advice will always be sincere, it should be used as guidence only.

 

I would always urge to seek professional advice for clarification prior to taking any action.

 

Please click my scales at the bottom of my profile window on the left if you found my advice usefull.

[patdavies]

They then insist the person borrowing the money is also going to be the RK and also is the named policy holder for the insurance. These additional things do therefore require the buyer to hold a driving licence.

 

No they don't'

 

There is no requirement for the RK to be able to drive. There is also no requirement for the policyholder for any insurance for the car to be able to drive.

 

There may well be an assumption that the buyer is going to drive the car, but it is not always so.

[sailor sam]

No they don't'

 

There is also no requirement for the policyholder for any insurance for the car to be able to drive.

 

There may well be an assumption that the buyer is going to drive the car, but it is not always so.

 

Most finance companies will insist on the car being financed has fully comp insurance. This normally applies to new vehicles and is for fairly obvious reasons. Any motor insurance policy will have to have a named driver (who dosn't necessarily have to be the policy holder) but the named driver on the policy WILL require a full driving licence. However, this does not necessarily mean the buyer/RK needs to hold a licence.

 

__________________

Please Note

 

The advice I offer will be based on the information given by the person needing it. All my advice is based on my experiences and knowledge gained in working in the motor and passenger transport industries in various capacities. Although my advice will always be sincere, it should be used as guidence only.

 

I would always urge to seek professional advice for clarification prior to taking any action.

 

Please click my scales at the bottom of my profile window on the left if you found my advice usefull.

 

 

Any advances on this?

[crem]

No they don't'

 

There is no requirement for the RK to be able to drive. There is also no requirement for the policyholder for any insurance for the car to be able to drive.

 

While you are correct that from a legal perspective the RK does not have to be able to drive, in my experience you would not be able to finance the car through the dealer's finance provider.

 

If the RK cannot drive, yet they want to borrow the money to buy the car, then the finance company would be led to believe you are buying it for someone else to drive, and this they would consider to be "fronting". On this basis they would refuse to lend you the money in the first place.