If I Finance a Car, can Someone Else be the Registered Keeper?

If you are looking to finance a car but don’t want to be the Registered keeper, you’re most likely buying the vehicle for use by someone else.

Parent – Can I buy a car for my Child?

Perhaps you are a parent, and your son or daughter needs a vehicle to travel to work or for further education. Suppose their income is insufficient to finance a car, with a  credit history which is less than perfect. It’s unlikely they get a loan, but if they do, it’ll be for bad credit car finance with a high APR and large deposit the lender needs.

With help from another person with a good credit history and a decent income, the repayments could be considerably lower, and a deposit may not be necessary. As a bonus, it’ll help them improve their credit history.

Partner – Can I buy a car for my Partner?

Alternatively, you might buy a car for your Partner, with them taking on the registered keeper role – which often happens when one Partner has a higher income than the other.

Share – Can I buy a car with Someone Else?

You might buy a car jointly to share all the running costs. Only one of you could be the registered keeper, but of course, that doesn’t prevent you from both driving the car. One note of caution many car finance lenders will only do a joint finance agreement between two people living at the same address.

First, we’ll explain why you can unlikely finance a car in your name only and make someone else the Registered keeper.

Although taking out finance for another person (known as accommodation finance) is legal in the UK, It doesn’t work well for car finance. Car finance companies rarely provide this type of finance as they consider it too risky.

Why! If the person you were to buy the car for cannot get car finance in their name but is the registered keeper, that will ring alarm bells with most lenders.

Suppose it’s your name on the agreement, and you, cannot make the payments. The lender may have difficulty getting the car back from you. You likely don’t have the vehicle, as someone else is the registered keeper.

It is breaking the law and committing fraud to misrepresent yourself to the finance company as the main driver when you apply for car finance for someone else.

So how can I buy a car on finance and let someone else be the registered keeper?

Car finance lenders are used to helping parents or partners who wish to help to buy a car for their child or partner to use and name them as the registered keeper on the V5C.

Joint car finance

Joint car finance means both of your names are on the agreement, and either can be a registered keeper. You are both equally responsible for the repayments. Of course, that doesn’t prevent you from being the sole finance contributor. When the contract ends, you jointly own the vehicle. You’ll most likely need to live at the same address.

Guarantor car finance

Guarantor car finance is when the person to be the registered keeper takes out the agreement, and the guarantor agrees to pay the monthly repayments if they cannot do so. The contract is with the registered keeper, and at the end of the agreement, they own the car, not the guarantor.

Buying a car for someone else or helping them with the finance is typical among many parents and partners.

Although you may not use the car and make the other person the registered keeper, it’s your money to finance the vehicle. You may be wise to ensure servicing and insurance are in order.

The registered keeper is responsible for daily looking after the vehicle, but have you decided who will pay for the maintenance and perhaps the insurance? Whether it’s you or the other person, are you aware of the likely cost depending on the chosen vehicle?

Even with a joint finance agreement, you must notify the lender if you want to swap the registered keeper.

Suppose you apply for car finance as a parent. Changing the name of the registered keeper on the V5C to your young adult after receiving the car will compromise the financial agreement.

Likewise, when buying a vehicle for your partner, the car gets transferred to them. Again failing to inform the finance company before signing could impact the contract.
You must tell the finance company which of you is to be the registered keeper. Failing to be upfront with the lender will likely affect the finance application.

No. Take this scenario. As a parent applying for car finance in your name, only the lender will deem you are the registered keeper. If you were to change the name on the V5C, you could compromise the finance agreement. If you want to buy a car for your child with their name on the V5C, you need to apply for joint car finance.