Financing a Vehicle

[XennoX]

So no one has been able to comprehensively answer my question. I'm pretty sure many other threads of 'Financing a vehicle' have been asked but I would like a complete answer.

Situation:

I have a license to operate the vehicle in question. I do not have the credit record to apply for finance (have been declined @ Wesbank & ABSA finance). So can I get my folks (specifically my dad) to finance the vehicle for me and then I will have the comprehensive insurance in my name?

If the answer is yes, how do I go about doing this?

 

[HapticSimian]

Not legitimately, no, as it amounts to 3rd party finance which no bank will agree to. You could ask your pops to stand surety for you, but that's not always enough to swing the banks' scales in your favour. You might need to adjust your sights; ask whoever you're dealing with to also enquire with the banks what they would consider approving with regards to an amount, deposit and term.

 

[Tman*]

I have done exactly this, so my answer would be yes.

Car is in my dads name, he applied for the finance and the monthly premium goes off his bank account (I EFT him each month for the balance)

I disclosed the information to Santam when I applied for comprehensive insurance and they said its no problem. On the policy schedule he is the owner but I am the regular driver.

 

[XennoX]

I have done exactly this, so my answer would be yes.

Car is in my dads name, he applied for the finance and the monthly premium goes off his bank account (I EFT him each month for the balance)

I disclosed the information to Santam when I applied for comprehensive insurance and they said its no problem. On the policy schedule he is the owner but I am the regular driver.

OK, and which finance house did you do it through? Also, does your dad have a license to operate the vehicle?

 

[memyselfandi]

Your dad must have the license. He buys the car through any bank. He takes out insurance as owner with you as regular driver. The bank does not even know or care if you exist. The debit order is on your dads name.

I will advise that you take out insurance that will settle the car if something happens to your dad and make sure that you are the heir of the car.

 

[etwylite]

There is no requirement to have a license to purchase a vehicle.

 

[memyselfandi]

There is no requirement to have a license to purchase a vehicle.

But there is a requirement to have a license if you FINANCE a vehicle.

 

[etwylite]

But there is a requirement to have a license if you FINANCE a vehicle.

Ummm.no..there is not.

 

[memyselfandi]

Yes there is.

 

[JStrike]

Ummm.no..there is not.

Yes there is

 

[etwylite]

Guys, i have financed numerous trucks and cars over the years and NO finance agreements ask for your license details. I do not have a code 10 or 14myself but my drivers do.

I repeat. The granting of finance is merely a credit compliance issue wrt the puchase of a movable asset. The purchasers interest is as owner not necesseraliy driver. Please do some research.

 

[HapticSimian]

Guys, i have financed numerous trucks and cars over the years and NO finance agreements ask for your license details. I do not have a code 10 or 14myself but my drivers do.

You, in a personal capacity, or your company?

I repeat. The granting of finance is merely a credit compliance issue wrt the puchase of a movable asset. The purchasers interest is as owner not necesseraliy driver. Please do some research.

There is absolutely a general requirement from the banks' side that anyone applying for vehicle finance be licensed to operate such. It's on the FAQ pages of Wesbank and MFC, as well as Standard Bank's details on buying and financing a vehicle.

The bank's interest is in the asset, and ensuring that the financed party is licensed mitigates some of their risk.

 

[memyselfandi]

Guys, i have financed numerous trucks and cars over the years and NO finance agreements ask for your license details. I do not have a code 10 or 14myself but my drivers do.

I repeat. The granting of finance is merely a credit compliance issue wrt the puchase of a movable asset. The purchasers interest is as owner not necesseraliy driver. Please do some research.

You are doing business finance and therefore you as a business owner do not need a license for the vehicle purchased. A private individual will need a license for the vehicle purchased.

 

[Venomous]

Yes there is.

nope.

you need a driver that has the required license.
(been there done that more than once. most recently about 2months ago).

How else would blind/disabled people be able to own cars? Or a start up business industrial vehicles?

 

[Venomous]

You are doing business finance and therefore you as a business owner do not need a license for the vehicle purchased. A private individual will need a license for the vehicle purchased.

read my previous post.

And that was personal finance.

 

[etwylite]

In my personal capacity.

 

[etwylite]

You are doing business finance and therefore you as a business owner do not need a license for the vehicle purchased. A private individual will need a license for the vehicle purchased.

This was personal vehicle finance, oh and you can buy a boat on asset finace without a skippers license too btw.

 

[Venomous]

This was personal vehicle finance.

Don't worry about selfcentred.

It can be done. It has been done before.

 

[memyselfandi]

Venomous, those are special conditions. If you are medically unfit to drive a car, special permission may be granted by the bank to grant you finance if you have a driver who does the driving for you. The driver will be the dedicated driver on the insurance and you the owner. Under no circumstances are you allowed to drive the car.

 

[etwylite]

Don't worry about selfcentred.

It can be done. It has been done before.

Thanks..thought i must have been doing it wrong all these years. Lol