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Can I have more than one guarantor for my car finance?

This informative blog explores the feasibility and implications of having multiple guarantors in car financing. We discuss the legalities, advantages, and potential complexities of this arrangement, offering valuable insights for those considering this option.


When it comes to financing your new car, having a guarantor can sometimes be an essential part of the application process, particularly if you have a poor credit history or no credit at all. 

A guarantor acts as an added layer of security for the lender, promising to meet the repayments if you fail to do so. But what if you’re considering having more than one guarantor? Let’s delve into the details.

What is a guarantor?

A guarantor is a person who agrees to repay your loan if you’re unable to meet the repayments. This offers added assurance to lenders that the loan will be repaid. Car guarantors are often close friends or family members who have a good credit history and trust the borrower.

Can I have multiple guarantors?

While it’s common to have a single guarantor for car finance, some lenders might allow multiple guarantors. However, it’s relatively rare and there are some points to consider:

1. Lender’s Policy: Not all lenders will accept multiple guarantors. It’s essential to check the specific lender’s terms and conditions or speak directly with them to understand their policy.

2. Complication: Having multiple guarantors can complicate the lending process. Lenders will need to run credit checks and gather information for each guarantor, which might slow down the application process.

3. Shared Responsibility: If multiple guarantors are accepted, they typically share the responsibility equally. This means if one guarantor can’t cover a missed payment, the other would be expected to step in.

Why consider having multiple guarantors?

1. Increased Assurance: Multiple guarantors can offer greater assurance to the lender, potentially increasing the chances of your finance application being approved.

2. Shared Burden: If, for any reason, you fail to make a payment, the responsibility doesn’t fall on a single individual. Instead, the obligation is spread amongst multiple people, potentially making it more manageable.

3. Larger Loan Amounts: Some lenders may be willing to offer a larger loan amount if there are multiple guarantors, as the risk is spread across more than one person.

Risks associated with having multiple guarantors

1. Strained Relationships: Money matters can strain relationships. If multiple friends or family members are involved as guarantors, there’s potential for more significant fallout if something goes wrong.

2. Legal Implications: All guarantors are legally bound to the agreement. If one guarantor fails to cover a missed payment, the others are legally obliged to step in.

🚗 Read more in this guide: What risks come with guarantor car finance?

How to apply with multiple guarantors

1. Discuss with the Lender: Before applying, have a direct conversation with the lender about their policies and any potential benefits or drawbacks of having multiple guarantors.

2. Complete Documentation: Ensure that all guarantors have their documentation in order, such as proof of income, identity, and credit history.

3. Understand the Agreement: Every party involved should fully understand their responsibilities under the agreement. It’s crucial to discuss the terms and ensure everyone is comfortable with the commitment.

While it’s possible to have more than one guarantor for car finance in some cases, it’s essential to weigh the benefits against the potential complications. Always engage in open communication with your potential guarantors and the lender to ensure a smooth and beneficial arrangement for everyone involved.

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