Leasing own car to friend.

Shovey

Hi guys I'm going travelling for 7 months on 5 feb and thinking of leading my 54 plate golf to a mate. It's just I'm not entirely sure what I have to do if I have to do anything to make this legal and cover my back? Obviously he'll get fully comp insurance.

Any advice much appreciated

vikingaero

Is the friendship expendable? Because I can only see difficulties.

If he is young a lot of companies won't insure him where he is not the registered owner.

If he does insure it and crashes is then realistically most minor accidents will write off a 11year old car. If he insures it and gets the payout, will he pass it on.

McKneff

I think I would just be inclined to sell it to him, if you value your friendship

motorguy

vikingaero wrote: »

Is the friendship expendable? Because I can only see difficulties.

If he is young a lot of companies won't insure him where he is not the registered owner.

If he does insure it and crashes is then realistically most minor accidents will write off a 11year old car. If he insures it and gets the payout, will he pass it on.

+1

Car breaks down, he damages it, he neglects it, he abuses it, he stops paying, he writes it off.

Far too many potential issues.

agrinnall

When I was travelling for four months I got my sister added to my insurance and she just drove the car occasionally to keep it in running order. If you're thinking of the leasing idea to make some money the I'd have to agree with McKneff that selling it (not necessarily to your friend) is the best option.

AdrianC

If he's that good a mate, why "lease" it to him? Why not just lend it to him?

"You bend it, you bought it" has to apply, of course.

forgotmyname

What if he doesnt insure it fully comp? Who will be opening your post to see if there are any speeding tickets or parking fines? Because they will still come to you.

Ive known someone do this and their car had an extra 20k miles in 8 months. Not serviced, Low oil level and a slipping clutch and gearbox whine, Shot brakes.
So called friend stopped speaking to him and refused to offer anything towards the repairs.

colino

Never sell a car or a house or car to family or friends, just don't do it. Home made lease sounds even worse, sell it now and add to your travel pot. You never know, you might never come back.

Hintza

Just give him the car for the duration if he writes it off (or trashes it) you need to be able to shrug and go oh well.

If you can't do that then don't even think of leasing it to him.

Shovey

Thanks for the replies guys, quite a united stance on not going through with it here. He's my accountant. He's a genuine lad but I get all your points and had my own reservations. I was gonna get a copy of his insurance and was gonna get an agreement in writing for him to sign.

forgotmyname

A copy of his insurance wont stop him cancelling it after youve given him the keys.

His insurance wont want to speak to you if they need to payout on the car and claim its worth half its true value.

What about repairs? He can claim the car was faulty and that he didnt create the fault. Who pays?

Why would an accountant want your car? Does he not earn enough and know howto get his own with potential tax savings?