Financing a car as a present. Owner/Keeper

gRoberts · 28 February 2015 at 11:26AM

Hi all,

For ages now, my OH has had utter bangers whilst I've had nice, fairly new cars.

As a 30th birthday present, I am going to be financing a brand new car for my OH, however I'm a little confuddled as to the legalities of it all.

Has anyone seen any cases where finance companies have allowed HP/PCP/Financed vehicles to be registered to a different name than the financer?

I'd be applying and paying for the vehicle but after that, for all intents and purposes, the car is hers to insure, tax and maintain afterwards (although i'll be a named driver on the insurance.)

Cheers

Gav

stator · 28 February 2015 at 11:35AM

Sorry to stick my nose in and not be useful but this sounds like an absolutely awful idea. Taking out credit for someone else's benefit is a disaster waiting to happen.

Read this thread:
http://forums.moneysavingexpert.com/showthread.php?t=5148234

Pablosammy · 28 February 2015 at 11:48AM

What we did was reduce the OH's contribution to the rent, and increase mine, to offset part of the payments. The finance is in her name, but I'm helping her pay for it effectively. It's not a lot - it's only a cheapish car - but it means if the worst came to the worst it would all be in her name.

dealer_wins · 28 February 2015 at 12:40PM

I would reject a present that my partner had to take out finance for, and be EXTREMELY offended to boot!!

Apples2 · 28 February 2015 at 12:59PM

Me too, I would be horrified if my OH buried herself in debt to get me a present.

If you are that mad, why not just take out a £10K loan and give her the wad of cash?
If you do that, make sure you sign a document stating that is is a GIFT, a whole GIFT, and nothing but a GIFT.
You will not make any claim for any repayment of the above GIFT and the money given as a GIFT is a GIFT and belongs to her and her alone.

Get it all signed by both of you with a third independent party present, who also signs as witness to the above transfer of the GIFT and is prepared to stand in Court and tell the beak it was a GIFT.

Or just tell her now of this crazy idea, hopefully take a slap and buy flowers and a theatre ticket & hotel room in the West End.

ripplyuk · 28 February 2015 at 1:06PM

The finance company will likely want it registered in your name. They did in my situation where the finance was in my mums name. Mine is a PCP taken out last March. They didn't mind us changing the registered keeper to me, later, as long as my mum was still a named driver on the insurance. We waited until recently to actually change it over but we could have (and should have) done it sooner. My mum and I don't share the same address so it was even more important to change the V5.

I know each finance company has their own rules on this so its best to check with them first.

If you're mainly worried about having two registered keepers on the V5 and reducing the car's value, you could just keep it registered to you, assuming you both live at the same address. I know other couples who have the wife's car registered in the husbands name.

I think it's lovely that you want to get her a new car for her birthday. I'm sure she'll be delighted.

Financing a car as a present. Owner/Keeper

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