Do I have to become the registered keeper of a vehicle to finance it?

You don't always have to become the registered owner and keeper of a car - some lenders will consider allowing you to take out car finance in your name, but have a different person named on the V5 certificate. 

For example, we have lenders who are willing to consider parents who wish to take out finance on behalf of their child. So, it's always worth contacting us to explain your situation to see if we can help. 

Check the registered keeper of a car before applying for finance

If you apply for finance and don’t tell us that you won’t be the registered owner and keeper, this may affect your application with the lender. More seriously, trying to take out car finance for someone else is considered fraud. Examples include:

• Having a parent as the registered keeper

If you’re a parent applying for car finance on behalf of your child, be aware that your finance application might be compromised if you change the keeper name on a V5 to  your child’s after receiving the vehicle.

• Having a partner as the registered keeper

A similar scenario is when one partner earns more than the other. The partner who earns more might apply for the finance and put their name on the V5. Once the finance application is fully approved, they transfer the car to their partner, as they’re the ones who are really keeping and driving the car. If you fail to notify your lender, your application might be impacted.

In each of these situations, the best way forward is to do a joint car finance application or find a guarantor who’ll agree to pay your monthly amount should be unable to do so.

Can you change the registered keeper of a car on finance?

Unfortunately, it’s not possible to change the vehicle keeper on car finance; you can't change the name on the contract until you make all the payments, so the car belongs to the finance company until then.

Do you get a V5 with a financed car?

So, do you get a logbook with a finance car? Yes! Importantly, though, the registered keeper of a vehicle should be its regular driver. So you may, therefore, find that when you take out a finance agreement, the V5 document is registered in your name.

However, this doesn't mean that you are necessarily the legal owner. For example,  often, company cars are registered to an employee but legally belong to the business. All traffic violations and fines are accrued to the registered keeper, as well as tax and insurance.

How to change the registered keeper of a car

The V5 must be replaced with the new keeper's details when selling, or even when transferring the vehicle to someone else, so that it officially becomes theirs.

It’s not possible to do this if the vehicle you’re trying to transfer the ownership of is still being paid for, though, and it’s a legal requirement for anyone selling a vehicle to notify the DVLA of the transfer. Importantly, failure to do so may result in a fine.

If you’re unsure about how to go about getting a car on finance, why not check out our car finance calculator to find out how much you might be able to borrow – even if you’re looking for bad credit car finance. Our team are experts and able to offer help and advice around any questions you have.

Ryan has worked at Zuto for a number of years and uses his experience within the industry to help customers understand the ins and outs of car finance.