Who is the registered keeper of a financed car?

The registered keep of a car bought with a finance agreement is usually the person who drives the car and looks after it and the legal owner of the car might be someone else, usually a finance company.

Key takeaways:

• The registered keeper of a car is the person named on the car’s registration document (the V5C or logbook)

• If there is a finance agreement in place, the legal owner of the car is usually the finance company

• You only become the legal owner of a car if you buy the car outright or your finance agreement has ended

Who is the legal owner of a car on finance for insurance purposes? 

If you bought a new car with a finance agreement, such as Personal Contract Purchase (PCP) or Hire Purchase (HP), the finance company is the legal owner of the car until the balance has been fully paid on the contract.

When you buy car insurance, you will need to tell the insurance company who the legal owner is.

After the final payment has been made on the agreement, and you have full ownership of it, you become the legal owner of it.

Who is the registered keeper of a car on finance?

The registered keeper of a car bought with a finance company is the person who looks after and drives the car.

This person will be named on the car’s registration document - the V5C or the logbook.

This only changes when the car finance agreement ends, such as when you’ve made all outstanding repayments or you’ve made a balloon payment.

If a driver is caught by the police driving a car that doesn’t have car insurance or road tax, the registered keeper of the car can be asked to pay a fine, or the car can be seized. If a driving offence happens - such as a speeding fine or parking ticket - the registered keeper of the car will receive the notification about this.

How does the registered keeper work with different types of car finance?

The two most common car finance agreements are PCP and HP. They work in similar ways but also have some key differences.

Here’s what happens with both when it comes to the registered keeper and the legal owner:

Hire Purchase

If you buy a car with a Hire Purchase (HP) agreement, you usually pay a deposit and then make monthly repayments to a car finance company. When the contract ends, and there is no money outstanding, you then become the legal owner of the car.

During the contract, when there is still money outstanding to the car finance company, you will be the registered keeper of the car and the legal owner of the car will be the finance company.

When there is no more money outstanding and the contract ends, this changes and you become the legal owner of the car.

Personal Contract Purchase

Buying a car with Personal Contract Purchase (PCP) means you pay a deposit and then monthly repayments, in a similar way to HP.

However, at the end of the contract, you are given a few different options. You can make a balloon payment to keep the car and become its registered owner, you can give the car back so you are no longer the registered keeper of the vehicle, or you can start a new finance agreement with a different car.

If you take on a new finance deal, you become the registered keeper of the new car until the finance agreement comes to an end.

Who is the registered keeper of a leased car?

The registered keeper of a leased car is the finance company which owns the car. This is the case with most leased car contracts, such as Personal Contract Hire (PCH).

With these finance agreements, you usually pay an upfront deposit and then monthly payments while you lease the car.

If you drive a leased car, you are the person driving the car and you are responsible for things like paying for petrol, car insurance, and parking tickets. You also need to keep the car in a good condition and make sure it has a valid MOT.

But you usually won’t have to pay for the road tax on a car, which will automatically be included in the monthly payments.

Can you insure a car if you don’t have proof of ownership?

Yes, you can insure a car even if you are not the legal owner and you are not named on the proof of ownership.

If you are the person driving the car, it’s a legal requirement for you to buy car insurance, even if someone else - such as a finance provider - is the legal owner of the car.

Without car insurance, not only are you not protected if you have an accident or your car is damaged or stolen, you will also be breaking the law.

Do you get a V5 with a financed car? 

When you buy a new car, either outright or with a car finance agreement, you will be given a V5C logbook (also shortened to a V5).

It states who the registered keeper of the vehicle is, and it also includes details such as the make, model, and registration number of the car. It will also tell you when the car was first registered, its emission standards, and the car’s Vehicle Identification Number (VIN).

This is an official UK vehicle registration certificate, which is issued by the Driver and Vehicle Licensing Agency (DVLA).

You are the registered keeper of the car while the finance agreement is in place because you are the person responsible for things like paying the road tax and insurance but also any penalties such as parking tickets.

How can you change the registered keeper of a car?

You will need to contact the DVLA to change the details of a registered keeper of a car. It’s important to do this as these records need to be correct.

This can be done online, via the Gov.uk website, or you can do it by post. When you tell the DVLA, it will then adjust the vehicle tax on the car. If you are not longer the registered keeper you will receive a refund for any full months of remaining tax.

If you buy a car without a logbook, you will need to apply for a vehicle registration certificate, known as a V62. If you sell or transfer a car without a log book, you will need to contact the DVLA with the following details:

• Your personal details including your name and address

• Vehicle registration number

• Make and model of the car

• Date of sale

• The name and address of the new keeper or motor trader

How can I check who the registered keeper of a car is?

You can ask the DVLA who the registered keeper of a car is or who the registered owner of a vehicle is.

If it’s not your vehicle, you will need what’s called a ‘reasonable cause’ to ask for these details. The DVLA says the following may be used:

• If you need to find out who was responsible for an accident

• If you are tracing the registered keeper of an abandoned vehicle or a vehicle parked on private land

• If you are giving out parking tickets or trespass charge notices

• For tracing people responsible for driving off without paying for goods and services or a person suspected of insurance fraud

Individuals will need to complete the form V888 (either online or by printing and posting) and companies will need to use the form V888/3.

If I buy a car on finance can someone else be the registered keeper? 

It is possible to buy a new car from a finance provider but for another person to be the registered keeper of the car in some circumstances.

This may be a parent, who is paying a finance company, while a child drives the car and is the registered keeper of the car, for example.

Lenders may have their own rules about this so always check with your car finance company first.