Car finance and registered keeper

j0rd4n500

Hey guys, just a quick question that i need help on.

My parents are looking in to buying me a new car for my 21st birthday as it will come with free insurance etc. but obviously they would want to get it on finance. When i contacted the companies free insurance they said only the owner of the car can be the main policy holder. So i would have to be a named driver which means i would only be 3rd party covered.

Is it possible for my parents to put me down as the owner of the car? I know the insurance company said my parents could give it as a gift to me or something but i didnt know if the car needed to be fully paid off or not?

Any help would be great.

Mr_F_Dorsetty

j0rd4n500 wrote: »

When i contacted the companies free insurance they said only the owner of the car can be the main policy holder. So i would have to be a named driver which means i would only be 3rd party covered.

The Registered Keeper of a car on the DVLA paperwork/log book is not necessarily the owner of the vehicle.

So, as with this car you speak of, it would be obtained via a form of HP therefore the vehicle is wholly owned by the Finance Company until the last payment is made, even though the purchaser is shown as the registered keeper.

Having dealt with is on a professional basis I can assure you that the purchaser of the vehicle must be the named insurer as the vehicle is literally being rented and the HP company quite rightly want to know that their asset is fully/properly covered.

I have no idea if the insurance is linked to the HP deal, it may well be as the HP commission may well pay for the insurance offer, so you would have to check with the dealer.

If the insurance deal is not dependant on the HP being used to obtain the vehicle, then surely the answer would be for your parents to raise a bank loan or similar and pay cash? With a non-specific bank loan then the bank have no call on the car or holiday or whatever it is used for.

In which case they would own the car outright and the insurance could then be in any name they chose.

You need to talk to the dealer and understand the 'deal' better.

j0rd4n500

Okay thanks for the info, I just found it weird the insurance company mentioned if my parents gave me the car as a gift and had my name put onit. I was not sure if they meant my name put on the finance or my name on the log book. Cheers for the information I will give them both a call again today see what the best work around is. Obviously they wont want my mum to buy the car then me to drive it most the time but only be 3rd party. I guess its just finding a compromise. For the record its with volkswagen and its a polo if that helps.

fevlo

j0rd4n500 wrote: »

. but obviously they would want to get it on finance.

Any particular reason why it has to be on finance ?
A cheaper car baught for cash would solve the problem, you would need to sort your own insurance out but you would atleast be free to choose who you wanted

Have you checked with the insurance company that they will insure you at 21 ?

DCFC79

fevlo wrote: »

Any particular reason why it has to be on finance ?
A cheaper car baught for cash would solve the problem, you would need to sort your own insurance out but you would atleast be free to choose who you wanted

Have you checked with the insurance company that they will insure you at 21 ?

Was just about to mention these points, from experience the free insurance has an age restriction eg older than say 25.

j0rd4n500

Yep the insurance company said as long as your 21 with less than 3 points and no driving convitctions etc. I matched the criteria. The reason for going with a dealer is because my parents have a friend who works there. He practically said in roughly 2 years I would be able to trade it in for a new car and then take ownership for the new finance (Credit Score depending). so mainly because they wanted the baloon payment at the end as it brings down monthly costs. Also the family friend has given us a good deal etc.

Mr_F_Dorsetty

j0rd4n500 wrote: »

Okay thanks for the info, I just found it weird the insurance company mentioned if my parents gave me the car as a gift and had my name put onit. I was not sure if they meant my name put on the finance or my name on the log book. Cheers for the information I will give them both a call again today see what the best work around is. Obviously they wont want my mum to buy the car then me to drive it most the time but only be 3rd party. I guess its just finding a compromise. For the record its with volkswagen and its a polo if that helps.

The marque makes little odds, it is the finance deal that matters.

Do be aware as well that in truth, as a named driver you are not supposed to be the main driver of a vehicle with most insurers, so again you need to check that out.

For instance if your parents lived say in mid Wales, owned the car and had you as a named driver but you went to university in Leeds and kept the car there - if you had a crash in Leeds you could have a real insurance issue.

Insurance companies do not pay out on circumstances they have not been informed of and rightly so.

A quick life lesson for you and you'd do well to remember this - just because someone at some company or insurers says something, that does not make it so until that is in writing.

Most of these people are young people just like you, reading off a screen, they know nothing about anything so take anything you're told with a huge pinch of salt.

Really, go to the dealer, sit down and talk them through it all with 100% honesty - they not only want to sell you a car they NEED to sell you a car, so will do anything legal they can to make it happen for you!

Gaz83

I was given a year's free insurance on purchase of a brand new Vauxhall Corsa in March 2005, when I had just turned 22. I appreciate that this was a good few years ago now. And mine wasn't finance, I bought it outright.

oldhand

Do check how much it will cost to continue to insure the same car for yourself after the years "free insurance" it may come as a shock..

j0rd4n500

Hey guys just to let you know I have called up and sorted this all out, My parents are allowed to finance it but the car be registered to me. I am allowed to be the policy holder and the main driver meaning i gain no claims and break no laws. Regards to future prices its only a 1.2 polo and i already have 3 years no claims

chanz4

friend at dealer does not mean good deals, the insurance isnt free. If you crash it pcp will cost you a lot, if you damage or even go over milleage it will heavly cost you.

VW are very poor cars, not like they used to be