Can a car be leased for somebody else?

[amirzed]

Players

Short story - my friend tried to lease a car but failed the credit check as it appears he has hardly any history of credit. The lease agent said he could put the lease in someone else's name - as long as they were and remained a named driver. After doing this the agent then called back and said this was no longer possible as it was similar to fraud, but he didn't have a real reason why.

Now my question is that at first glance it would seem that it is not good practice, however, is it actually fraudulent? Is there a standard clause in the lease contract that says the person who leases must be the main driver/regular driver/same household driver etc.

Or is there a way to offer a guarantee for someones lease?

thanks in advance

[4lf4-155]

I wouldn't put my name to something without seeing a copy of their credit report no matter how well I knew them....

There are plenty of leasing companies that do deals for bad/poor credit they are not cheap though

http://www.ultracars.co.uk/non-status-car-leasing/...

Edited due to fat fingers...

[Butter Face]

It's basically fronting and is not allowed.

http://www.fla.org.uk/media/081210_Q3_motor_fraud_...

[Troubleatmill]

AMIGO LOANS ANYONE?

=========

50% APR AND YOU ARE THE GUARANTOR !!!

=====================

NEVER EVER EVER BE THE GUARANTOR FOR ANYONE

==========================

WHY AM I SHOUTING!!!??? BECAUSE IF YOU ARE BEING A GUARANTOR FOR ANYONE - ODDS ARE YOU WILL BE SHAFTED!!!!

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If someone cannot afford their own credit - why on earth would you throw yourself into the mix,



Sorry- Fed up with the continual TV LOANS/ PAYDAY crap on the telly.

[Vaud]

Leasing a car and insuring it are separate issues.

A disabled user could lease a car and have their helper drive it for them. Owner, RK and driver can all be different. Anything is possible, providing all parties have declared everything and all parties are happy with the arrangement.

But fraud it is not, in my understanding. Undesirable customer profile, maybe. Lease to a client who does not have primary control over the asset that is being leased (in case you need to recover it in event of default) would be the red flag, I guess.

The leasing company may make it a not unreasonable requirement that the asset they are leasing is primarily kept at the house of the person leasing it?

[Northernchimp]

Troubleatmill said:

AMIGO LOANS ANYONE?

=========

50% APR AND YOU ARE THE GUARANTOR !!!

=====================

NEVER EVER EVER BE THE GUARANTOR FOR ANYONE

==========================

WHY AM I SHOUTING!!!??? BECAUSE IF YOU ARE BEING A GUARANTOR FOR ANYONE - ODDS ARE YOU WILL BE SHAFTED!!!!

=====================================================================

If someone cannot afford their own credit - why on earth would you throw yourself into the mix,



Sorry- Fed up with the continual TV LOANS/ PAYDAY crap on the telly.

I don't understand how Amigo loans get customers. If you're going to guarantee a loan for somebody, why not borrow it from HBSC at 4.8% and charge your 'amigo' scumbag rates anyway and pocket the difference.

[JimmyConwayNW]

Couldn't a mother/father lease a car that a son/daughter was going to be the sole user for?

[GoneAnon]

Any standard lease will have a clause prohibiting sub-hire which is what you would be doing if you leased an asset, gave it to someone else and had them make the payments, whether direct to the lessor or to you.

At the lessor's discretion, they might waive this condition but you would need to give them a fairly compelling reason to do so and - seeing as the vehicle is their security - I wouldn't expect many of them to do this.

[Dr G]

Unless the applicant failed to make the lender's basic criteria (age, UK resident, employed) etc. then they are unlikely to refuse based on a lack of credit history.

All of the finance houses I know and use would look at ability to repay rather than turn away the business.

I suspect 'not enough credit history' is an excuse.

[rfoster]

It's seen as an accommodation deal and all finance companies that I deal with will not allow this. Let's suggest that you were to take on a loan for a friend and he stops paying you back the same amount you're paying by direct debit - and you decide to stop paying the finance company. The finance company will come after you and not your friend. Similarly, if you were to take the finance in your own name but with the direct debit in your friend's name and they stop paying, it's your credit rating that's going to get ruined.

Leasing is not really any different to car finance - the lessee must stand up for credit in their own right, be comprehensively insured on the asset at all times and have a valid driving licence.

[Ozzie Osmond]

JimmyConwayNW said:

Couldn't a mother/father lease a car that a son/daughter was going to be the sole user for?

You are absolutely right. The "can't be done" crowd are talking nonsense.

However, unless agreed with the lease company beforehand it may well be a breach of the lease contract. As ever with contracts the question becomes - so long as nothing goes wrong, who cares? Proper insurance needs to be taken seriously though.

[Vaud]

rfoster said:

Leasing is not really any different to car finance - the lessee must stand up for credit in their own right, be comprehensively insured on the asset at all times and have a valid driving licence.

Not sure I agree. I think that a disabled driver could lease, own and pay for the insurance for their driver (and of cause be fully liable for the payments), but not hold a drivers licence. Mobility is special but a comparable example?

It's all about disclosure and allowing the lease/insurance companies to take the risk/decisions based on the facts?

I am being a bit pedantic, in this case I'd avoid it like the plague.

[TwistingMyMelon]

Complete can of worms, I see people do this for mobile phones @ £30 a month and it ends in tears and usually a CCJ, I dont want to imagine what is like spending £300 doing that.

[amirzed]

Thanks for the replies - sounds best to steer well clear!