Joint Application is Providing an Avenue Towards Higher Car Loans

When it comes to getting a dream car, a joint application for a car loan can be the answer to a frustrating quandary. While many people can qualify singularly for a loan, they cannot always qualify for the car they really want.Applying jointly with a partner for the car loan is a logical, manageable and effective solution. This is especially true when the duo making the joint application will be jointly using the vehicle anyway.Surprisingly, the ability to make an application for joint ownership of a car is not a commonly known fact, meaning that tens of thousands of people across the nation lose out every year. But by combining the income totals of both applicants, the loan figure increases dramatically and previously unaffordable vehicles come within financial reach.But, as is the case with every loan application, obligations must be met and lenders may have extra conditions. For example, it is not strange for a lender to seek proof of a larger income than for single car loan applicants. This is because of the risks should one of the applicants suffer a change in situation, thereby affecting the ability of the other to pay.Amongst the other concerns for those making a joint application are the issues of ownership, insurance consequences and whether a co signer is a better choice.OwnershipThere can be legal complications with applying jointly. Both applicants own the car and are therefore entitled to all of the benefits and subject to all the responsibilities that joint ownership brings.By making a joint application it may seem more likely that the car loan repayments will be made, even in the case that one dies. This can be different to a situation with a co signer, where they have no ownership entitlements and so no real interest in the car. A co owner, on the other hand, will have a vested interest.InsuranceWith regards insurance, a joint application will have a very real effect on the insurance policy and premium to be paid. While the terms of the car loan itself may be clear cut, insurance companies see some complications. For example, in the case of a traffic accident, since all joint applicants are considered the vehicle owners, each of them could be considered liable.To counter this, insurance companies themselves are careful to cover the possibility of larger law suits than if the vehicle had just one owner. So, they will usually consider those who apply jointly for the policy as separate applicants, and then focus on the bigger risk. So, even if the main driver has a 10 year accident free driving history, a co owner with an accident on their record provides the terms of the policy.Co Signer May Be BetterWith these issues, the question is whether a joint application is actually the wisest choice. After all, the list of potential complications is long, such as if one owner wants to sell or if a married couple in joint ownership decide to divorce.A co signer is at considerably less risk, since they only come into the picture if there is a problem with the owner making repayments. However, if they two parties jointly apply for a car loan then the co owner is entitled to sell the car if the other fails to make a payment.If a person is considering making a joint application for a car loan then trust is a major issue too. But this is a personal matter between the parties, and as many friends and advisers are sure to point out, no financial arrangement should be agreed with anyone that is not fully trusted.