Can't seem to get approved for car finance, but you desperately need a new set of wheels? Don't worry; you don't have to go without a car. Give up your bus pass - joint car finance could be the solution you never knew you needed!
Get someone else to coborrow with you and drive away in the car of your dreams sooner than you'd think. Here's what you need to know about joint car finance.
What is Joint Car Finance?
Applying for joint car finance is extremely similar to getting personal finance; you borrow some money to buy a car, and pay the loan back over time. The critical difference is that two people are responsible for the debt and, therefore, the repayments. The second borrower is usually a family member or close friend of the first person. Most often, it is a spouse, but you can also borrow with a parent, sibling, or friend.
Joint finance is a term that also applies to a loan with more than two people responsible for it. All coborrowers take equal responsibility for the entire loan. Therefore, if one of the borrowers can't contribute their share of repayments, the other borrowers are responsible for those repayments.
The most common example of joint finance is when a couple has a mortgage together, and both pay off the loan. Many people don't realise that you can also get a joint car loan that functions in the same way. However, getting joint finance for vehicles and other expenses is becoming more and more common as people realise what a great option this is. After all, if a couple shares a car, why should only one be responsible for the debt?
Why Apply for Joint Car Finance
With two incomes considered in the application, applying for car finance with someone else can mean you'll be able to borrow more money. Income is one consideration for finance companies when deciding how much we can loan to you, as we want to make sure that it's feasible for you to pay back the loan.
As two people usually earn more than just one, this can help those with low income get approved. If your income isn't high enough to get approved on your own, you may be able to gain approval by applying alongside someone else.
Have a Back-Up
If unforeseen circumstances affect your income or partner's income, having a joint loan means that the other person will need to cover repayments for you. This offers additional security as you know you won't lose your vehicle if your situation changes, as long as the coborrower can cover the full repayments.
Choosing who you might apply for finance with is an important decision. If this person defaults on their payments, you will be responsible for repaying the total amount of the loan. If you and your partner already have joint bank accounts, then it could make sense to take out a loan together.
Consider who of your friends or family you'd trust enough to take out a loan with. If you're not sure that a person's financial situation is stable enough, maybe consider choosing someone else.
How to Apply for Joint Car Finance
1. Apply Online
Applying for joint car finance is easy - simply apply online at the Stadium Finance website. The process is easy and only takes a few minutes of your time. Be ready to answer questions about you and your coborrower's finances and the amount you wish to borrow.
Once you hit submit, you can both sit back and relax. If we need any further details from you or your coborrower, we'll get in touch. You should receive the decision within one working day.
3. Buy Your Car
After your joint car finance has been approved, we'll send you the funds within 1 day. You could be driving away in your new car by as early as tomorrow!
Why Choose Stadium Finance?
Many kiwis choose Stadium Finance for their joint car loans. We offer fast decisions so you can get on the road as soon as possible. Plus, if you and your coborrower have good credit, we offer competitive interest rates from as low as 7.95%.
With loan terms lasting 12 - 60 months, you can select a duration that suits you and choose a payment option that aligns with your pay cycle.
Haven't decided which car you'd like to buy yet? Apply for preapproval, and we'll let you know how much we're willing to lend you in advance. Then you can start checking out vehicles that meet your budget.
Got questions about joint car finance? Get in touch with us today. Or simply apply online for your loan now.