New car on dealer finance - registered keeper on V5

[clockworks]

We ordered a new car for 'er indoors last month.
We explained the situation - car will be hers, but the finance will be in my name because her credit rating is bad.

Finance was approved, no deposit, at a favourable rate.
We actually had to leave a £1k deposit, but that will be refunded to my credit card when we collect the car.

The car is now built, and on the boat. Collection for first week in March.

I got a letter today, asking me to check all the details, sign and return.

Letter has me down as the registered keeper, so I phoned up to query it.
It's her car, she's paying for it, so it should be in her name. Dealer knew this when we ordered.

I've phoned them, and they say it has to be registered in my name, as the finance is in my name.

We've done this twice before on secondhand cars - me paying, but registered in her name.

Is the dealer correct?

[Dimebars]

Every car we've had for the wife has been financed in my name and registered to me. The dealers have always maintained that "he who finances will be he who is registered keeper"

Its to try and prevent fronting (which is effectively what you're doing because your Mrs credit is ropey)

In the big picture, does it really matter? Registered keeper does not prove ownership in any event

[Danm1les]

Who the registered keeper is doesn't overly matter?

[clockworks]

Trying to insure a car that is registered to someone else can be tricky. Maybe it's different for a married couple? We aren't married or civil partners.

This is why the first car she got with my help was put in her name - proved impossible to get insurance in her name if the V5 was in my name.

If I'm the registered keeper, I'll also be on the hook legally for parking tickets and driving offences.

Dealer did say that we could just transfer it into her name as soon as the V5 arrives in the post. I pointed out that it would then be a 2 owner car when it's sold. If the manufacturer's finance partner is happy for that to be done, then why wouldn't they just do it in the first place?

[Danm1les]

My partners golf was in my name and she insured it and drove it everyday, was no issue to insure etc. In the same way a leased car, V5 not in your name, is not in your name.

I really would not worry about it.

[clockworks]

I'll discuss it with her when she gets home from work.

[Ezra]

I know it's not ideal but could you accept the V5 in your name, if dealership insists to match finance, then transfer V5 to your wife a week later.

[Mandat]

clockworks said:

Trying to insure a car that is registered to someone else can be tricky. Maybe it's different for a married couple? We aren't married or civil partners.

This is why the first car she got with my help was put in her name - proved impossible to get insurance in her name if the V5 was in my name.

If I'm the registered keeper, I'll also be on the hook legally for parking tickets and driving offences.

Dealer did say that we could just transfer it into her name as soon as the V5 arrives in the post. I pointed out that it would then be a 2 owner car when it's sold. If the manufacturer's finance partner is happy for that to be done, then why wouldn't they just do it in the first place?

Insurers usually want the policyholder to be the owner & registered keeper.

If the finance is in your name, you are the de facto owner, and will be in the same position with regard to insurance

[cuprabob]

Ezra said:

I know it's not ideal but could you accept the V5 in your name, if dealership insists to match finance, then transfer V5 to your wife a week later.

OP said:

Dealer did say that we could just transfer it into her name as soon as the V5 arrives in the post. I pointed out that it would then be a 2 owner car when it's sold.

[anonymous-user]

Ezra said:

I know it's not ideal but could you accept the V5 in your name, if dealership insists to match finance, then transfer V5 to your wife a week later.

If they are insisting registered keeper and finance match then it will be a condition that the finance company must be informed of any change to the former.

[Ezra]

cuprabob said:

Of course, but how much is that an issue? It wouldn't be to me.

[Mandat]

cuprabob said:

I know it's not ideal but could you accept the V5 in your name, if dealership insists to match finance, then transfer V5 to your wife a week later.

OP said:

Dealer did say that we could just transfer it into her name as soon as the V5 arrives in the post. I pointed out that it would then be a 2 owner car when it's sold.

Technically, it will still be a 1 owner car but with 2 registered keepers on file, although I know what the OP is trying to say about 2 owners when selling in the future.

[Stupot123]

I don't want you to think this is judgmental, you have asked the question, so quite happy to answer it.

As someone else has mentioned, taking credit and buying a car for someone else who has bad credit is called Finance Fronting and could be viewed as fraudulent, I don't know whether is is actually illegal hence my vagueness.

Dealer will be wanting all their ducks in a row so that if the st hits the fan they aren't seen as being complicit in it. Plus, quite often when its an actual manufacturer that's the finance house too, they will do a double check behind the scenes that everything is matching.

If you want to test this theory that what you are doing is wrong, phone the finance company that has accepted you at the favorable rate, explain what you are trying to do, and see what happens next!

Edit.
From a quick Google, it would appear so.

Is fronting car finance illegal?
This practice of fronting is illegal and can lead to severe consequences for all parties involved if discovered. It is important to be transparent and honest in car finance applications to avoid legal and financial complications.

Edited by Stupot123 on Wednesday 8th January 16:54

[clockworks]

She isn't my wife.

We were perfectly up-front with the dealer when we placed the order, explaining that it would be her car, I would be paying, and she would be paying me each month.

I've heard of insurance fronting before, never heard of finance fronting. How is that even a thing? If I sign the paperwork and set up a direct debit to pay it, then I'm legally liable for the repayments.
Since the name on the V5 doesn't prove legal ownership anyway, why does it matter to the finance company if it's in my name or hers?

Does being married mean it's not finance fronting, and not bring married mean it is?
What if I bought a car on finance, then gave it away to her?

[charltjr]

The only impact will be that a small number of insurers will decline to quote and any fines etc will go to the RK initially.

The RK not being the driver is very common with the growth of personal leasing, it's nowhere near as big a deal as it used to be for getting insurance.

[BenS94]

clockworks said:

She isn't my wife.

We were perfectly up-front with the dealer when we placed the order, explaining that it would be her car, I would be paying, and she would be paying me each month.

I've heard of insurance fronting before, never heard of finance fronting. How is that even a thing? If I sign the paperwork and set up a direct debit to pay it, then I'm legally liable for the repayments.
Since the name on the V5 doesn't prove legal ownership anyway, why does it matter to the finance company if it's in my name or hers?

Does being married mean it's not finance fronting, and not bring married mean it is?
What if I bought a car on finance, then gave it away to her?

Can I just help you here with the following:-

- it doesn't matter who it is for, if it's not you then, it's fronting, it's illegal

- it doesn't matter who pays, it's fronting, it's illegal

TL;DR - what ever your excuse (say it with me folks), it's fronting, it's illegal.

[Stupot123]

clockworks said:

She isn't my wife.

We were perfectly up-front with the dealer when we placed the order, explaining that it would be her car, I would be paying, and she would be paying me each month.

I've heard of insurance fronting before, never heard of finance fronting. How is that even a thing? If I sign the paperwork and set up a direct debit to pay it, then I'm legally liable for the repayments.
Since the name on the V5 doesn't prove legal ownership anyway, why does it matter to the finance company if it's in my name or hers?

Does being married mean it's not finance fronting, and not bring married mean it is?
What if I bought a car on finance, then gave it away to her?

The dealer isn’t the person you are defrauding, it’s the finance company, the dealer just wants to sell you a car and say goodbye, so is helping you as they get a sale.

They know it’s wrong, but by having everything matching in your name they can deny all know if it all goes Pete Tong. The verbal part wouldn’t be provable and all the paperwork would all look fine, so they are clean. Again, if you want to prove this, ask them to confirm to you in writing that what you are doing isn’t illegal.

I don’t want to get into a V5 vs ownership debate, but from the finance companies viewpoint it defacto is. Part of the terms and conditions of the finance is you remain the owner and registered keeper for the duration.

The married/ non married, it would still technically be fronting and just as wrong, but if married much harder for the finance company to suspect/prove, as there is much more in common, such as use, where it’s kept overnight, insurance etc.

I said earlier I wasn’t being judgmental, and I’ll still stay impartial as I don’t know the facts, but it’s likely someone has stiffed previous lenders to be in the situation with bad credit. Companies who have lent money in good faith, and not had it paid back. The consequences to someone who is happy to do that, is new lenders won’t take the chance, so no shiny new trinkets for a while until it’s all resolved.

Could what you are trying too do be looked upon as trying to short circuit and game the system to get round that?

[clockworks]

So a man buying a car on finance for his wife would be fronting, and fraudulent - unless he was the legal owner/keeper?

Only for cars, or does it apply for anything bought with a "secured" loan?


Maybe I should just pay cash, and be done with it? Or could that be seen as dodgy too?

[ADJimbo]

clockworks said:

She isn't my wife.

We were perfectly up-front with the dealer when we placed the order, explaining that it would be her car, I would be paying, and she would be paying me each month.

All of the finance fronting advice correctly provided by others, your proposed arrangement of you paying for the vehicle, and then she reimburses you will also breach the T&C’s of any loan agreement or leasing agreement as it’ll be classed as you sub-letting the vehicle to a third party which will be a big no-no from the funders perspective.

[Stupot123]

clockworks said:

So a man buying a car on finance for his wife would be fronting, and fraudulent - unless he was the legal owner/keeper?

Only for cars, or does it apply for anything bought with a "secured" loan?


Maybe I should just pay cash, and be done with it? Or could that be seen as dodgy too?

Yep, correct.

Couldn't say for other things. Although I would think a similar principle would apply, stinky on finance should result in no further finance until sorted, self policing if you like!

Cash is fine, you can do what you want with the goods then, there is no third party stipulating what you then do with it.