Representative Example: You could borrow £10,699 over 60 months with an initial payment of £495.89 (including £199 Admin Fee) followed by 58 monthly payments of £296.89 with a final payment of £495.89 (including optional £199 Option to Purchase Fee). Total amount repayable will be £19,012,40. 26.1% APR, annual interest rate (fixed) 13.3%.
Can someone else drive my financed car?
If you’ve taken out car finance, like HP or PCP, you might be wondering whether someone else can drive the car. It’s a common question, especially if you share driving with a partner, family member, or friend. The answer depends on your finance agreement and your insurance.
Yes, someone else can usually drive your financed car, but only if they’re fully insured to do so. The finance company owns the car until your agreement ends, so you need to follow their rules.
It’s important to check your agreement. Some lenders may have specific terms that stop other people from using the car regularly. Occasional use by friends or family is usually fine, but handing over the keys permanently wouldn’t be advised.
If you're ever unsure, contact your finance provider to double check what’s allowed. Breaking the terms could risk consequences on your finance agreement.
Yes, anyone who drives your financed car must have the right insurance in place. It’s a legal requirement and helps protect you, the driver, and the vehicle. This can usually be done in two ways:
But be careful. Not all policies allow someone to drive another person’s car, especially if it’s on finance. Always check your insurance policy first. Letting someone drive your car without insurance is illegal and can lead to fines, points on your licence, and your car being seized by police.
Yes, in most cases, you can add another person to your car insurance as a named driver. This means they’re officially allowed to drive the car under your policy. This is useful if:
Just let your insurer know who they are and how often they’ll be using the car. Keep in mind that the main driver must be the person using the car most often. Putting someone else as the main driver to save money is called “fronting” and it’s insurance fraud.
Adding a named driver can sometimes reduce the overall premium, especially if they’re older or have a clean driving record.
If someone else crashes your financed car, what happens depends on the insurance policy. If they’re insured to drive it:
If they’re not insured, you could face serious legal and financial problems. You may have to pay for the damage yourself and the finance company will still expect repayments to continue.
That’s why it’s always safer to check insurance before anyone else drives your car — even just once.
Yes, someone else can help pay your car finance, such as a parent or partner. However, the agreement stays in your name, and you remain legally responsible.
The lender wouldn’t recommend letting someone else make payments on your behalf or take financial responsibility for the vehicle. If that person stops helping and the payments are missed, you’ll be the one who faces late fees, defaults, or even repossession. The lender wants to help you avoid any potential financial harm.
If someone else is regularly making payments, it might be worth considering a joint finance application next time. That way, you can share responsibility for the agreement and both be legally liable.
Most finance companies won’t let you transfer a finance agreement to another person. HP and PCP agreements are personal contracts based on your credit and financial situation.
If someone else wants to take over the car fully, you usually need to:
Some lenders may allow a “voluntary termination” or “early settlement”, but there could be fees involved. Always contact your lender before making any changes, as they’re the best people to explain your options and guide you through the next steps.
Letting someone else drive your car without permission from the lender or without insurance can breach your finance terms. This could result in:
Lenders expect you to use the car in line with your finance agreement. If you want someone else to drive the car regularly, it’s important to get permission first. A quick call to your lender can help you avoid any misunderstandings or costly issues later on.
