INSIGHTS & GUIDES
Who is the registered keeper of a personal lease car?
Who is the registered keeper of a personal lease car?
The registered keeper of a vehicle is the person that holds the V5 document for the vehicle and responsible for road tax. A vehicle on lease (Contract Hire / Personal Contract Hire) is owned by and registered to the finance provider (Funder) and not the individual leaser. This means that the funder is responsible for road tax, this is why all contract hire vehicles come with road tax included for the duration of contract.
A contract purchase (PCP), Finance Lease (FL), Hire Purchase (HP) or any other purchase agreement is registered to the individual making them liable to road tax.
Who owns the car I'm leasing?
It can be confusing to understand who is the owner of a leased vehicle. In short the funder or finance provider are both the owner and registered keeper of a leased vehicle (Contract Hire / Personal Contract Hire). If you are on a contract purchase agreement then you are the registered keeper but it is the funder who is the owner of a leased vehicle still.
Who is responsible for a leased vehicle?
A comprehensive maintenance package can be added to your lease contract for an additional fixed monthly cost. This will cover servicing, replacement tyres and other consumable parts. This cover is in addition to the standard full UK Manufacturer's warranty and at least 12 months' roadside assistance and recovery that comes with all new vehicles. A maintenance package takes away the risk of paying for expensive and unplanned maintenance costs, offering a fixed monthly fee. It is the finance company who is the registered keeper of a personal lease car but if you are wondering as a customer 'am I responsible for repairs on a lease car / what am I responsible for when leasing a car?'
In simple terms if you don't take out a maintenance package which covers servicing, replacement tyres and other consumable parts then you the customer are responsible for carrying out any maintenance that is required for the lease vehicle during the duration of your lease. You are also responsible for any repairs needed should you damage the vehicle whereby the damage is not deemed to be fair wear and tear. Please visit our Fair Wear & Tear Guide for further information.
Is it worth buying out my lease?
With a Contract Hire / Personal Contract Hire lease only a small number of finance companies allow you to purchase your lease vehicle at the end of contract so you need to take this into account if you are looking to buy out car lease. The finance companies that allow you to buy your lease at the end of the contract don't give you any discount, they will sell to the customer at market price. For this reason we look to put our customers into the next best lease deal. If you are looking to lease or buy a car the 3 main benefits of leasing a vehicle over buying are as follows:
- Lower up-front cost - brand new cars can be expensive if you pay a deposit or buy it outright and you may need to take out a loan or use savings. With leasing you can set your initial payment and monthly budget so you always know what you are paying.
- Brand new car - you get to drive a brand new car every few years depending on the length of your lease contract.
- Avoid the hassle of selling a car - at the end of your lease contract you return the car and walk away and have no worries of selling the vehicle at the end of the lease.
We don't actually deal with the sale of used lease vehicles if you want to know should I buy a previously leased car? All our leased cars are owned by the finance company who collect the vehicle at the end of the lease and send them to auction, we don't have any control or dealings with this.
