If I Buy a Car on Finance, Can Someone Else Be the Registered Keeper?

 

Yes, someone else can be the registered keeper of a car you finance. The registered keeper is the person responsible for the car’s day-to-day use. Their name will be on the V5C logbook, and they’ll handle things like insurance, road tax, and servicing.

For example, a parent might take out car finance for their child. The parent is the legal owner because they’re paying for the car, but the child is the registered keeper because they’re the one driving it. However, not all finance companies allow this, so it’s best to check before applying.

If the lender requires the registered keeper to be the same as the borrower, a joint finance application could be a good option. That way, both names appear on the finance agreement, and either person can be the registered keeper.

What’s the Difference Between the Owner and the Registered Keeper?

A car’s owner and registered keeper aren’t always the same person. Here’s how they differ:

If you finance a car, you’re usually the registered keeper, but the finance company remains the legal owner until you’ve repaid the full amount. This means you can’t sell the car while it’s still under finance.

Who Owns a Car on Finance?

When you get a car on finance in the UK, you don’t actually own it straight away. The finance company or lender is the legal owner until you’ve made all the payments. They keep ownership as security, meaning the car isn’t fully yours until the final instalment is paid.

Even though you don’t legally own the car, you still have to take care of it. That includes insurance, road tax, and making sure it’s properly maintained. Once you’ve paid off the loan, the car is officially yours.

Who Owns the Car in a Hire Purchase (HP) Agreement?

With a Hire Purchase (HP) agreement, you don’t own the car until you’ve made the final payment. The finance company stays the legal owner throughout the contract.

HP spreads the cost of the car over a set period, making it easier to budget. At the end of the agreement, you’ll usually need to pay a small “option to purchase” fee to take full ownership.

Who Owns the Car in a Personal Contract Purchase (PCP) Agreement?

A Personal Contract Purchase (PCP) agreement works a bit differently. The finance company owns the car throughout the agreement, and you have three options when the contract ends:

• Return the car with no further payments (as long as it’s in good condition and within the agreed mileage limits).
• Make a final “balloon payment” to own the car outright.
• Part-exchange it for a new car on a fresh finance deal.

Until you make that final payment, the finance company keeps ownership. That means you can’t sell the car unless you pay off the outstanding finance first.

Can You Change the Registered Keeper of a Financed Car?

Most finance companies don’t allow you to change the registered keeper mid-contract. They approve finance based on the original applicant’s details, and changing the registered keeper could break the agreement.

If you need to change it, your options are:

• Pay off the finance early to take full ownership and then transfer the registered keeper.
• End the agreement and take out a new one in the new keeper’s name.
• Ask the lender if they allow a registered keeper switch (some might, but it’s rare).

If you’re struggling with payments, it’s best to speak to your lender as soon as possible. They may be able to help with alternative solutions.

Need Car Finance with Bad Credit?

If you have a poor credit history and need car finance, options are still available with bad credit car finance broker like Carboom. Many lenders offer finance tailored for people with bad credit. It’s important to compare different lenders and understand the terms before applying.