HP Finance - Who is the legal owner?

ahillsy

Apologies if this is a stupid question - I've never bought a car on finance before so hold my hands up, I just don't have a clue...and am confused by what I've read when I tried finding a definitive answer.

When I buy car on HP finance, assuming the finance is for < 50% the value of the car....
1) Is it correct that the finance company are the legal owners (and hence must be declared as so on the insurance), until it's all been repaid, and I am the registered keeper?

Assuming that is correct:
2) how does this affect the cost of insurance in general, if at all? e.g. confused.com comes back with far fewer results when I specify the owner is a "company" so I can't see without ringing round
3) once the finance is cleared, I then become the legal owner. So when I come to sell the car in future, it is then sold as having 2 previous owners?

Thanks all

motorguy

You hold the taxbook and its your name on it.

the finance company have a financial hold over the car though, ie, if you default then they can, under certain circumstances repossess the car.

ahillsy

But that is the name of the registered keeper.
I get they have a financial hold over the car, but does that mean they are the legal owner?

e.g. confused.com specifically asks you to declare who the registered keeper is, and who the legal owner is.

Sorry if I'm being dense, but I'm trying to find a definitive answer and I'm not sure from your reply if you're saying the finance company are classed as the legal owner.

harveybobbles

The reg'd keeper is you. So you put you down on the insurance. Insurance websites are a bit cluless when it comes to that question.

Yes the legal owner is the finance company - be it 10, 20 or 80% of the car, they own it until their poercentage is settled.

Also the car will be reg'd in your name. If you read the small print on the V5 it will say "The reg'd keeper isnt always the legal owner"

ahillsy

Thanks.

It's just because they ask for both registered keeper and who the legal owner is that made me think.