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Ask Clare Your Own Question
Clare
Clare, Solicitor
Category: Property Law
Satisfied Customers: 34581
Experience:  I have been a solicitor in High Street Practise since 1985 with a wide general experience.
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I would like to buy a car, a family member is willing to lend

Resolved Question:

I would like to buy a car, a family member is willing to lend me the money but I have other debts that this family member is aware of that may mean someone else may try and take the car aware to pay those debts. Is there a way I can own the car for insurance purposes as I don't live with that person so need to insure it at my own property. I've looked at logbook loans and bill's of sale but I'm confused as to the best way to go about it so as if the bailiff's come around to take the car from me I can pull out a document saying actually this car has a loan of X secured against it so it's not worth taking. The family member is not bothered about me paying the loan back and would gift me the money but obviously I don't want that as if the car is taken it's my loss.
Submitted: 2 years ago.
Category: Property Law
Expert:  Clare replied 2 years ago.
Hi
Thank you for your question
My name is Clare
I shall do my best to help you but I need some further information forst.
Would you be willing for the Car to be Registered to the Family member?
Clare
Customer: replied 2 years ago.

Yes that's no problem but I thought it would not be possible or way more expensive to insure as the car would be kept at my own house not theirs.

Expert:  Clare replied 2 years ago.
Hi
There should be no problem at all - the ownership of the car (who holds the V5) is often different from the question of who insures the car (as many parents will tell you) but the fact that the Registered keeper is not you will protect it from the Bailiffs
I hope that this is of assistance - please ask if you need further details
Clare
Customer: replied 2 years ago.

It seems there is a difference between being the "owner" and the "registered keeper" I've been through various comparison website's and it doesn't seem to make much difference to the cost of insurance if these are two separate people.

How do we legally go about stating that another person is the owner ?

Do I just fill out the V5 and state that I am the registered keeper ?

I would like to do the same with the car I currently own so in the short term there are no issues, how do I "sell" my current car to another person so as they become the legal owner ?

Expert:  Clare replied 2 years ago.
Hi
No the other person needs to be the Registered keeper - that is the whole point
It would not be sensible to do this with a car that you own as it could put both cars at risk- unless you can prove that you received full value for the car you sold
Clare
Customer: replied 2 years ago.

Ok I will leave the current car as is.

On the new car the family member will actually purchase the car directly from whoever is selling it by doing this and the money transfer not hitting my account do they automatically become the vehicle "owner".

When that's done why can't I fill out the V5 in my name and become the registered keeper as it seems that's how you get the normal insurance rates and they are way more expensive if you try to insure a car that you are not the registered keeper of. On the price comparison website for car insurance there are two separate questions, "are you the owner" and "are you the registered keeper".

Expert:  Clare replied 2 years ago.
Hi
In fact my children have never paid more despite the fact that I was the Registered keeper.
If you wish to protect the car then the relative's name needs to be on the V5
Clare
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