Finance Question

[br0ke]

My daughter is 18 yrs old and wants to buy a new Corsa with the free insurance offer. Quotes for the Gp1 Aygo she currently shares with my wife were £2.2-£2.7k. She passed her test just over a year ago.
She has a part time job and is adamant that she can afford the new car, so we went to the local showroom and selected a car with the 0% finance offer. I said that I would act as guarantor.
The saleman called me today with a tale of woe that they won't give her finance - presumably as she has no credit history and only low earnings.
He said they have accepted me and could I call them. I did so and they specifically asked if "I was the sole owner and main driver".
The honest answer is no to both, but when put on the spot I said yes.

Now I'm having second thoughts. I'm worried that the salesman will say anything to get the sale and could potentially leave me and my daugther in a lot of bother if something went wrong.

If, for example, the car was stolen then the insurance may not pay out and, of course, it will still need paid for.

Should I tell my daughter that we can't do this?

 

[Sp!ke]

By lying about this you would be committing fraud.

Not worth the risk to you and not a good life lesson to give your daughter.

 

[moonloops]

He said they have accepted me and could I call them. I did so and they specifically asked if "I was the sole owner and main driver".
The honest answer is no to both, but when put on the spot I said yes.

As Sp!ke has said it's basic insurance fraud, in the event of a serious claim the insurers will take all your assets including your home..

 

[Spin_bowler]

Don't go there. It's known as fronting and illegal.

 

[Deleted member 55947]

I think you've hit the nail on the head about the salesman saying anything for a sale. I thought these sort of free insurance deals only applied to over 21s, he may have spun you a line from the start

 

[markjay]

From your question, it sounds as if you already know the answer...

As others said above.

Perhaps it is possible to somehow arrange for you to be a guarantor for your daughter's loan?

If the salesperson is so eager to sell, he might make the effort and enquire with the finance provider on your behalf.

 

[Wheelsnuts]

There is no doubt that lying would be fraudulent and therefore illegal. The guarantor suggestion sounds like a good way forward if possible. Good luck.

 

[ioweddie]

Why don't you get a loan, buy the car cash with large negotiated discount and get your daughter to pay you back, the discount will go towards the insurance. She will probably not pay you but that's what dads are for. My daughter is 42 and has always been the hole in my bucket

 

[Giantvanman]

Should I tell my daughter that we can't do this?

Yes.

You could ask if they would give the finance if you signed as guarantor. But, I would point out to her, the insurance is free for one year only. Year two, it's not just the car that needs paying for.

 

[IanA2]

Hmmm...crazy:

 

[Primo]

Try different dealers because they may have different deals with different finance houses.

 

[markjay]

Hmmm...crazy:

I think you will find that on balance he is very likely to get away with it.... unless the car is involved in a serious accident, no one would know.

But (a) the question he asked was if it is OK, so no, it is not OK.... and (b) it is not worth the risk.

 

[Rory]

I said that I would act as guarantor.
The saleman called me today with a tale of woe that they won't give her finance - presumably as she has no credit history and only low earnings.

I must admit I don't know much about how this works, but surely if you're the guarantor there should be no problem?

Or perhaps the finance company doesn't routinely want to go down that route?


I suppose it could simply be that they really don't want to do these deals for high insurance cost youngsters so will look for any reason to reject.

 

[automaniaman]

OP... Tell your daughter, we can't do this.

 

[Sp!ke]

These deals don't have free insurance for 18 year olds anyway so I would have a rethink on the whole idea.

The likelihood is that she will have a few mishaps anyway in her first couple of years driving so you're better off getting her a cheap, low grouping runabout and insure daughter as primary insured with her mother as a named driver (which often lowers the costs considerably).

Why a Corsa anyway? There are better options out there.

 

[Rory]

These deals don't have free insurance for 18 year olds anyway...

Well, it's not quite free, but it's only £99.

 

[IanA2]

@br0ke: You've asked the question, and had pretty consistent responses.

Have you decided what to do yet?

 

[br0ke]

I had decided that I wasn't prepared to front for her, and had told her that.

The only reason for the Corsa was the £99 insurance and given that she wanted the finance and that I had no issue with guaranteeing it for her, I didn't see the problem - except VX finance wouldn't give it to her.

Vauxhall answered it for me anyway. She won't be driving for 1 year until early November and they have removed the insurance on the car she had picked, so no deal.

I have told her to get a credit card and mobile phone contact to build up a credit history and then when the next deal comes along (hopefully on a better car, although the Corsa was OK) she will be in a stronger position.

Another introduction to the real world for her I'm afraid.

 

[kingdave]

My kids are all under 5 so I didn't take too much notice, but a cab driver who drove me home from heathrow at the weekend told me that they recently found insurance for a new female driver for just £700. Sorry I didn't get he model of the car or the insurance company, but it was definitely under 1litre and a small small car, smaller than the girl's friends corsas etc.