How Can I Get an Auto Loan for My Daughter
by Pan
(Seattle, WA)
Answer: Hi Pan. The most difficult aspect of this process will be getting an approval with your daughter on the loan.
Since she does not have a job and the car is for her the lender is going to want to know how she is going to pay for it.
If your monthly income is enough to not only cover your monthly expenses, but her car loan payments as well, then you could probably get a credit union to say yes with both of you on the loan.
This is assuming that your credit is above average and her credit is not poor. If she is a college student this is easier to do, because the whole deal makes more sense to the lender.
If she is not a college student and let's say in her mid 30's with no job, then adding her to the loan becomes much more challenging (this would also apply if her credit was poor).
In fact, she may not be able to go on the loan at all, because that scenario doesn't make as much sense to a lender.
In this case you'd probably have to buy the car for her. Another problem you run into here though is that this is consider a "straw purchase", which many lenders will not allow (someone buys and finances a car when the car is not for them).
All in all, I'd say that a local credit union would be your best to get an auto loan for your daughter as they will be most likely to work with you and tend to be a bit easier to work with in the "straw purchase" area.
Don't be discouraged if one tells you no, as each one will have different guidelines, so it may be worth it to contact a few in your local area.
Hope this helps,
Justin
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