Buying a car for a daughter on pcp.

dave5416

We are thinking about purchasing a brand new car for my daughter who turns 18 soon. We will purchase the car on a pcp in our name but she will be the main driver and will hold the correct insurance.
My questions are. Can this be done? (Finance agreement in my name but she will be registered keeper). Can I choose to change the agreement when she is 21 so that the pcp moves into her name?
I'm asking this as gap insurance only covers the registered keeper.

motorguy

dave5416 wrote: »

We are thinking about purchasing a brand new car for my daughter who turns 18 soon. We will purchase the car on a pcp in our name but she will be the main driver and will hold the correct insurance.
My questions are. Can this be done? (Finance agreement in my name but she will be registered keeper). Can I choose to change the agreement when she is 21 so that the pcp moves into her name?
I'm asking this as gap insurance only covers the registered keeper.

It can be done - no great issue i think - but you wont be able to later move the PCP deal into her name. The finance will be in your name.

easy

but how long is the pcp deal for? if 3 years (which is the most usual term for PCP) then not a problem surely, as it will be ending as she turns 21.
If you are thinking of 48 months, could you not leave it in your name for the remaining year - even if she actually makes the payment to you.

neilmcl

Is this her first car? Wouldn't it be better getting a cheaper, second-hand car that you could live with getting the odd, inevitable knock or two, then when she's finally got some experience under her belt you could look at getting something newer?

k12479

I agree with neilmcl, new drivers and new cars are a waste, it will most likely get some damage at some point. Plus if your daughter's 18, will she be in the same place for the next 3 years? If she goes off to university or e.g. gets a job/moves to central London, she may not be able to take it with her.

londonTiger

wow brand new car for an 18 year old.

OddballJamie

londonTiger wrote: »

wow brand new car for an 18 year old.

Seems a bit out of place on a money saving forum.

Chimpofdoom

neilmcl wrote: »

Is this her first car? Wouldn't it be better getting a cheaper, second-hand car that you could live with getting the odd, inevitable knock or two, then when she's finally got some experience under her belt you could look at getting something newer?

Quite agree with this, guy at my work bought his 18 year old daughter a new Toyota Aygo a couple of years ago... it was written off 2 months after she bought it. I did try to tell him, but he used the saying "that's what she wanted", she now drives an old Corsa.

Dukesy

Have to add to what others have said - the number of people I knew when I was in sixth form who managed to damage or write off their cars (some in quite spectacular fashion) was quite ridiculous. There is no point buying a brand new car for someone who has just passed their test - let them build up a bit more experience first, and then buy them the new car if you really have to.

motorguy

Just to add to that - My son took up gardening during his first summer after he passed his test.

Well thats what i think he was doing anyway - landed his Renault right into someones front garden after taking out their gate, gatepost, four posts of fencing and a shrub bed to get there.

sk240

As others have already said, its s pretty silly thing to do when theres a good chance of damaging it.

I would suggest on old (pre 2000) corsa or fiesta etc