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Joint Car Finance

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Rates from 24% APR
36.1% Representative APR -
Subject to status and affordability

APR Explained

Looking for an affordable car loan but unsure whether your income alone will cover the repayments?

Before we make our final lending decision, you can have the option to add a joint applicant so two people share the loan and its repayments — a simple way which may boost overall affordability and keep monthly costs manageable.

This guide explains how joint car finance works and why your credit files become linked.

Step 1: Calculate your monthly repayments

Car Finance Calculator

Step 2: Apply and track your application online, in real time (No login or app needed!)

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Representative example – Total amount of credit £10,000, annual interest rate 18.25% (fixed), charge for credit £9,430 (£9,125 interest, £295 admin fee and £10 option to purchase fee), total amount payable £19,430. Loan term of 60 monthly instalments, 59 payments of £323.67 and 1 final instalment of £333.47. 36.1% Representative APR – Subject to status and affordability

What is joint car finance?

When you take out joint car finance, both borrowers sign the same hire-purchase contract and agree to repay every instalment.

This is called “joint and several liability”, which means either borrower can be asked to pay 100 % of the instalments if the other stops paying.

After the balance is cleared, both names go on the V5C logbook, so you co-own the car.

Every payment (on time or late) appears on both credit reports.

How joint borrowing links your credit files

Credit reference agencies create a “financial association” between you and the other borrower.

Future lenders will see the other person’s history until the loan is fully repaid and you request a disassociation.

This link can work in your favour if your co-borrower has stronger credit, but it can harm you if their score falls during the agreement.

Joint car finance after being refused elsewhere

Many drivers turn to a joint application after a single‑name application fails. If you have already been declined, visit our Refused Car Finance page for tips.

Adding a partner or family member with steady income could turn a “no” into a “yes”.

Joint car finance and bad credit

Go Car Credit specialises in helping people with bad credit to get car finance.

We consider low scores, CCJs, defaults, IVAs and even discharged bankruptcy.

A stronger co-borrower’s income and payment record can lift the combined profile and improve the offer.

You can also choose a £0 deposit option to keep your savings for insurance or running costs.

Who can be a joint applicant?

  • A spouse or partner living at the same address.
  • A parent looking to help an adult child build credit.
  • A close friend or sibling with a steady income willing to share responsibility.

All joint applicants must:

  • Live at the same UK address (proof of address required).
  • Be willing to share full responsibility for every payment.

Who legally owns the car during a finance agreement?

Until the finance is fully repaid, the legal owner of the vehicle is the finance company. You (and anyone else involved) only have the right to use the car under the terms of the agreement. “Registered keeper” on the V5C logbook is not the same as legal ownership.

  • Joint finance: Both named borrowers are jointly and severally liable for the full debt from day one, but neither legally owns the car until the balance is cleared.
  • Guarantor loan: Only the main borrower is responsible day to day and has the right to use the car. The guarantor is liable only if the borrower defaults. Neither the borrower nor the guarantor legally owns the car until the agreement is settled.
  • Named driver (insurance only): Being a named driver on the insurance policy gives no ownership rights or liability for the finance. It simply allows that person to drive the vehicle with the policyholder’s permission.

In short: Regardless of whether you’re a joint borrower, a guarantor, or just a named driver on the insurance, the finance company remains the legal owner until the finance is paid off in full.

Pros and cons of a joint car finance agreement

  • Pros
    • Better chance of approval thanks to two incomes.
    • Potentially higher loan amount and wider car choice.
    • Monthly repayments can be shared.
    • Builds both applicants’ credit history when payments are on time.
  • Cons
    • You are each liable for the full balance if the other cannot pay.
    • Your credit files stay linked until the loan is cleared.
    • If the relationship changes, the loan must be settled or refinanced before one party can leave.

Documents you will need

  • Photographic ID (driving licence or passport).
  • Proof of address dated within the last 3-months (utility bill, council-tax bill).
  • Last 3-months of bank statements (PDF or screenshots).
  • Payslips or benefit-award letters to confirm income.

How our joint car finance application works

  • Step 1: Use the Car Finance Calculator to see a comfortable repayment.
  • Step 2: Apply in your own name. We run only a soft search, so there is no mark on your credit file.
  • Step 3: Review your decision and provisional payments.
  • Step 4: If your budget would benefit from an extra income, we’ll ask you to add a joint applicant before the final decision.
  • Step 5: We perform one hard search when both applicants agree, set up the agreement and link the credit files.
  • Step 6: Choose any used car from our nationwide dealer network, sign online and drive away – with no deposit if you prefer.

Early settlement and negative equity

You can settle your joint loan early at any time. We’ll provide a settlement figure that includes any interest saved. If the car’s value drops below the outstanding balance (negative equity), both borrowers remain responsible for paying the difference.

Why choose Go Car Credit?

  • Bad credit car finance specialists who take into account today’s affordability, not just yesterday’s mistakes.
  • Benefits income such as Universal Credit or PIP can be included in the budget.
  • Fixed rates and no hidden fees.
  • Average approval time is usually under 30 minutes.
  • Thousands of “Excellent” Trustpilot reviews from real UK customers.
  • Regulated by the Financial Conduct Authority (FCA) – licence number 679653.

Frequently asked questions

Does adding a joint applicant always help?

Usually, yes it could – but if their credit is weaker, it could lower the combined score. We show both outcomes before any hard search.

Can parents and adult children apply together?

Yes, as long as you live at the same address and everyone understands that the responsibility is shared equally.

Will a no-deposit loan cost more?

Monthly payments could be a little higher without a deposit, but the APR stays the same and you keep your cash for insurance and running costs.

What happens if we separate?

You must settle the loan or refinance into one name before either party can walk away. The car cannot be split.

Can benefits income replace employment income?

Yes. Regular benefits such as Universal Credit, PIP or Carer’s Allowance can count towards affordability.

Add a joint applicant after your soft search

Apply now in your own name. Once you pass our soft credit check, you can add a joint applicant before we give the final yes.

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