Can I lease a car for someone else?

Wondering if you can lease a car for someone else? This guide breaks down what’s allowed, the key considerations, and the alternatives worth weighing up.

You may ask yourself, “Can I lease a car for someone else?” This Carwow guide will help you understand whether you can lease a car for another person and will also talk you through some alternatives.

Remember, you can lease a brand new or used car right here on Carwow. We’re here to help you through every step of your car-changing journey.

Can I lease a car for someone else?

Yes, you can lease a car for someone else. You may wish to lease a car for a family member, for example. Not every leasing company will allow it, but many do.

So long as the leasing company is happy, arranging a lease for someone else is quite straightforward. However, there are legal and financial implications that need to be well understood before leasing a car on behalf of a friend, colleague or family member.

There are also a number of alternatives to leasing a car on someone else’s behalf which may better suit your needs.

What should I consider when leasing a car for someone else?

It’s important to think through the implications of leasing a car for someone else. These are the things to consider:

Legal responsibilities

When leasing a car on behalf of someone else, legal responsibilities lie with the person named in the leasing agreement. This person, the leaseholder, is responsible for the legal and financial obligations outlined in the agreement.

As the leaseholder, you will be responsible for making sure the lease payments are made. Keeping to the terms of the agreement, such as any mileage limitation and the condition of the vehicle, will also be on your shoulders.

Insurance and named drivers

If you are leasing the car on behalf of another, you will be responsible for making sure the vehicle is insured. The person on whose behalf you arrange the lease needs to be the named driver if they are the main driver of the vehicle. Other drivers (including yourself) can be named drivers on the insurance policy.

Maintenance

If you are the leaseholder, then the responsibility for routine maintenance is yours. So, you will have to make sure the car is serviced on time. You may expect the main driver to do this, but from the leasing company’s perspective it is down to you to make sure this happens.

Alternatives to leasing a car for someone else

If you want someone else to have a lease car, there are several ways you can go about it.

Co-signing a lease

Co-signing a car lease with another person means you are both responsible for the car. That means all financial, legal and insurance obligations are shared.

This isn’t a very common arrangement, but it can be useful if you want to avoid being solely responsible for a car that someone else is driving.

Providing financial help

You don’t have to enter a formal arrangement to help someone. If you would like to help a family member to lease a car you could provide assistance with payments without your name appearing on any documentation. If you do go down this road, be sure to make it clear up front who is responsible for what and how much you are happy to help.

The person to whom you provide help will need to pass any credit checks required by the leasing company.

Gifting

Alternatively, you could transfer a lease from your name to the name of the person you wish to run the car as a gift. You would need to do this with the agreement and assistance of the leasing company.

Adding the other person as a named driver

You could take out the lease yourself and add the friend or family member as a named driver. This only works well if you will genuinely be the main driver of the car. If the named driver is really the person using the car, they need to be the main driver on the insurance policy.

Leasing a car for someone else FAQs

Can other people drive my leased car?

Yes, other people can drive your leased car. Check exactly what requirements or restrictions the leasing company may have first, and make sure the other driver is insured to drive the vehicle.

Can I insure a leased car not in my name?

You can insure the leased car with the permission of the leasing company and leaseholder. But it’s far more common for the main leaseholder to arrange insurance, adding any additional people as named drivers.

Car change? Carwow!

Looking for a new set of wheels? With Carwow you can sell your car quickly and for a fair price – as well as find great offers on your next one. Whether you’re looking to buy a car brand new, are after something used or you want to explore car leasing options, Carwow is your one stop shop for new car deals.

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