Car Leasing and PCP I am leasing but son is main driver away from home

Bolt1234

Hello,  just checking a few things here please.   Hopefully the bullet points make things easier to read

1.  We would like to help fund a car lease or PCP for our 23 year old son who lives away from home. We do not want to look at second hand cars.  

2. It would be in my name but son would pay half the monthly fee to me.  Looking at a car lease under £200 per month.  

3.  I believe with a car lease that there could be issues with car insurance as the leasing company would expect me to be the main driver and have the car at my house when in fact my son would be the main driver. I have my own car anyway!

i personally have had both PCP and a car lease so know how they work when I am doing it for myself but could anyone advise in the case above.  Anything I should look out for please?

Mildly_Miffed

Surely the easy solution is for the contract to be in his name? You can still provide the funding.

Side benefit - you won't be on the hook if things go pear-shaped.

Bolt1234

I doubt he would pass the credit check due to his age and his salary. He has saved hugely to get a very small studio rental away from the home. It’s important he funds some of the car though.  I am not worried about things going wrong but of course recognise that it can.  

DullGreyGuy

Bolt1234 said:

Hello,  just checking a few things here please.   Hopefully the bullet points make things easier to read

1.  We would like to help fund a car lease or PCP for our 23 year old son who lives away from home. We do not want to look at second hand cars.  

2. It would be in my name but son would pay half the monthly fee to me.  Looking at a car lease under £200 per month.  

3.  I believe with a car lease that there could be issues with car insurance as the leasing company would expect me to be the main driver and have the car at my house when in fact my son would be the main driver. I have my own car anyway!

i personally have had both PCP and a car lease so know how they work when I am doing it for myself but could anyone advise in the case above.  Anything I should look out for please?

PCP/Leases will consider it "fronting" and most dont allow one person to be responsible for the vehicle and then give it to someone else. Some do allow joint leasing though which would then be fine, may limit you in providers and therefore cost a bit more but probably better than breaching the finance agreement. 

Herzlos

Most lease companies won't allow the contract to be with someone other than the main driver.

You could take out a bank loan (your name) for the car (his name) and have him help you pay it back. That way the money is unrelated to the car and it's not fraud.

Though why the insistence on a new car? You'll be able to buy a 3+ year old car for half the money and it'll be fine to use, and won't be as heartbreaking the first time he reverses into a lamppost.

Bolt1234

Quick update - going to buy the car we currently have on PCP which is ending June 25 - it was on a four year lease.  Son will share the cost and manage all the costs bar the first year insurance which is our birthday present to him.