Purchasing a car that you have had on PCH

Herzlos

BOWFER said:

I'm not convinced anyone really cares about the number of owners, within reason.
Obviously if a car has multiple owners in a short space of time it screams "Lemon".
But the OP being the third owner in quick succession after the second owner is easily explained in this scenario and shouldn't bother anyone.

Given you mentioned having bought multiple lease cars before, how did you go about it?

BOWFER

Herzlos said:

Given you mentioned having bought multiple lease cars before, how did you go about it?

Not had this issue before, just a straightforward purchase.
But I've never leased from Lex.

Sandtree

DrEskimo said:

As I understand, the legal owner and the registered keeper are two different things.

Could your friend/family buy the car, but you become the registered keeper? Then simply purchase from your friend the next day.

You could even transfer the money to them and in effect they are just buying the car for you, and you remain the next registered keeper and the named driver on the insurance policy. Not unlike a parent buying a car for their son/daughter?

That would negate the need for multiple names on the V5.

The finance company would need to confirm that they are comfortable from a VAT perspective that this doesnt cause them issues. Given registered keeper is the only one of public record you'd imagine that they'd be even more concerned about that being the same as the person that's been the lesee 

DrEskimo

Sandtree said:

DrEskimo said:

As I understand, the legal owner and the registered keeper are two different things.

Could your friend/family buy the car, but you become the registered keeper? Then simply purchase from your friend the next day.

You could even transfer the money to them and in effect they are just buying the car for you, and you remain the next registered keeper and the named driver on the insurance policy. Not unlike a parent buying a car for their son/daughter?

That would negate the need for multiple names on the V5.

The finance company would need to confirm that they are comfortable from a VAT perspective that this doesnt cause them issues. Given registered keeper is the only one of public record you'd imagine that they'd be even more concerned about that being the same as the person that's been the lesee 

Yea fair point.

I guess it was just clarifying exactly what aspect the lease company are uncomfortable with, is it with issuing a purchase order/receipt to the leasee, or is it in putting them down as a register owner, or indeed both.

I agree though, not exactly a big deal, but just seeing if there was an option to avoid it.

Sandtree

DrEskimo said:
I guess it was just clarifying exactly what aspect the lease company are uncomfortable with, is it with issuing a purchase order/receipt to the leasee, or is it in putting them down as a register owner, or indeed both.

I agree though, not exactly a big deal, but just seeing if there was an option to avoid it.

The lease of a vehicle is considered under law "the supply of a service" where as HP for example is "the supply of goods" and this makes a big difference on how VAT is paid. For goods VAT is paid up front for the full value of the goods whereas for services VAT is paid on the value of the service as each service charge is made. There is also a difference on the VAT payable on the vehicle at the end.

There has been much legal consideration in recent years over the point that service becomes goods (which normally has a negative impact) and whilst legal cases have been brought on some aspects (Mercedes Agility PCP went under legal review on if it was a service or goods) other parts remain open to question (eg if the lessee sells the car on behalf of the finance company - obviously talking commercial fleet clients here)

This is an ok article on the issue https://www.shlegal.com/docs/default-source/news-insights-documents/download-pdf300e7b85045b6c60befcff000023f0be.pdf?sfvrsn=cb55175b_0 but there are better ones out there.

The finance company just want to ensure HMRC cannot think that the agreement was actually the supply of goods faked into looking like a service.

Grumpy_chap

Is an option to find out when the car is going to auction and bid for it then in the open market?
I don't know whether this is possible, but it might work and might even secure the car cheaper.

BOWFER

Grumpy_chap said:

Is an option to find out when the car is going to auction and bid for it then in the open market?
I don't know whether this is possible, but it might work and might even secure the car cheaper.

This is why it's well worth haggling with the lease company.
They have to pay for someone to collect the car and then take their chances at an auction.
You're saving them a fair bit of expense and risk.

Penelopa.Pitstop

Grumpy_chap said:

Is an option to find out when the car is going to auction and bid for it then in the open market?
I don't know whether this is possible, but it might work and might even secure the car cheaper.

Or find a trader who will buy car from lease company and sell to the OP, for some small fee. This way, number of keepers will be minimal.

Sandtree

Penelopa.Pitstop said:

Grumpy_chap said:

Is an option to find out when the car is going to auction and bid for it then in the open market?
I don't know whether this is possible, but it might work and might even secure the car cheaper.

Or find a trader who will buy car from lease company and sell to the OP, for some small fee. This way, number of keepers will be minimal.

Given the trader takes on the liability of having sold the car to the OP I suspect the fee wouldnt be that small if they stop and think about it.