In most cases, the registered keeper of a financed car will remain with the lender until all payments have been made and ownership has been transferred to you.
It is important to remember that even though you may be making all of the payments on a financed car, legally, you do not own it until ownership has been transferred back to you. You are also solely responsible for ensuring that road tax, insurance and servicing requirements are met throughout this period.
Ultimately, being aware of who is technically registered as the keeper of your car is important for you as a driver. It can help you to understand any legal implications and responsibilities, should anything happen during the term of your finance agreement. Additionally, it means that you can ensure that ownership is transferred back to you when all payments have been made.
What Happens If The Registered Keeper Of A Car On Finance Changes?
If the registered keeper of a car on finance changes, it is important to inform the finance company. The finance company may need to update their records, and failure to do so might result in legal action since you are legally bound by the terms and conditions of your agreement.
It is also likely that there will be extra costs associated with changing the registered keeper. Depending on the finance agreement, these costs could include an administration fee as well as possible changes in interest rates or monthly payments if applicable. Additionally, some insurance policies may need to be changed too. Therefore, it is important to check the exact details of your finance agreement before making any decisions.
What Are The Consequences Of Not Updating The Registered Keeper Of A Car On Finance?
When a car is bought with finance, the registered keeper’s details must be kept updated. Failure to do so can have serious consequences and may result in a breach of contract. This could mean legal action being taken against the person or persons responsible for not updating the information, as well as any other individuals involved in the agreement.
In addition, it could mean that the finance company has full rights to repossess the vehicle without warning.
How To Update The Registered Keeper Of A Car On Finance
Updating the registered keeper of a car on finance can be a complicated process, as it involves making changes to existing contracts and agreements between both parties. Generally, here are the steps needed to update the registered keeper of a car on finance.
1. The transferrer (the person wanting to transfer their rights) must contact their lending company or bank that is financing the vehicle. They will need to provide information such as their name, address and registration number in order for them to authorise the transfer.
2. The new keeper will also need to complete an application with the lender or bank stating their details and agreeing to take on responsibility for all payments associated with the car loan agreement. They may also need to provide proof of address and possibly a copy of their driving licence.
3. The lender or bank will then review the information provided and decide if they are willing to accept the name change on the car loan agreement.
4. If accepted, an updated registration certificate (V5C) with the new keeper’s details will be sent to them within 6 weeks from when DVLA receives notification. This document must be kept safe and should always accompany the vehicle.
5. Finally, the transferrer will need to contact the Driver & Vehicle Licensing Agency (DVLA) in order for them to officially record the change in registered keeper of the vehicle. They can do this online using GOV.UK’s website or by post using the V5C form.
Once all of these steps have been completed, the new keeper will be officially recognised as the registered keeper of the car on finance by DVLA and the lender or bank that is financing it. It is important to remember however, that even though ownership has changed, any outstanding payments are still valid and should be made as agreed in the original car loan agreement.
