Disabled partner HP Fronting Confusion

[CSLM3CSL]

Marx23 said:

But it’s not illegal to get car finance and not be able to drive due to one reason or another.
So a nominated person has to be the driver ?

The terms of the finance will.insist you need a full drivers license to take out the finance. If you purchase the vehicle and the engine fails on the way back from the garage and the supplying dealer refuses to cooperate then you will need to go to your finance company who will rent you a car. Except they can't if you don't have a license. Someone doing an accommodation deal has committed fraud often this is done to get a better rate on the finance deal.

[Sheepshanks]

CSLM3CSL said:

The terms of the finance will.insist you need a full drivers license to take out the finance. If you purchase the vehicle and the engine fails on the way back from the garage and the supplying dealer refuses to cooperate then you will need to go to your finance company who will rent you a car. Except they can't if you don't have a license. Someone doing an accommodation deal has committed fraud often this is done to get a better rate on the finance deal.

You could well be correct, but on the face of it they're pretty flimsy rules, especially the hire car thing - just say no, you obviously can't rent a car to someone who doesn't have licence. As long as the finance is assessd based on the credit-worhiness of the person paying for it, what's the problem?

[CSLM3CSL]

Sheepshanks said:

CSLM3CSL said:

The terms of the finance will.insist you need a full drivers license to take out the finance. If you purchase the vehicle and the engine fails on the way back from the garage and the supplying dealer refuses to cooperate then you will need to go to your finance company who will rent you a car. Except they can't if you don't have a license. Someone doing an accommodation deal has committed fraud often this is done to get a better rate on the finance deal.

You could well be correct, but on the face of it they're pretty flimsy rules, especially the hire car thing - just say no, you obviously can't rent a car to someone who doesn't have licence. As long as the finance is assessd based on the credit-worhiness of the person paying for it, what's the problem?

All these rules are there to protect the finance companies profits. The actual driver could be getting a lower rate than they would get otherwise if the car was in their name. There are often a number of issues with getting the car back when relationships break down etc.