PCP car but brother wants it...

scottomus0

scottomus0

scottomus0

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Right, a few questions which id appreciate!

At the moment i have a VW Polo on a pcp deal which i took out last November.

As of May i got a new job with a company car, leaving the polo sat on the drive at home.

My brother has now said that he will carry on paying for the car and use it himself. Now i know i cant transfer the finance or the V5 to him due to the finance contract.

But what are my options, if any?

Is it possible for him to call his insurers to put himself as the main driver to the polo, letting them know im the registered keeper? also having me as a named driver on his insurance?

Or, do i stay as the main driver, find an insurer who will let named drivers build no claims on the policy? Or is this one fronting?

Any info is appreciated as it would certainly help my bank balance each month!

Thanks guys.
 
Sirrel Squirrel said:
He should take out a loan and give you the money to settle it with the finance company. No way would I let someone else make payments on finance that was in my name.
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Why not? His brother's basically getting him a better credit rating for free.

I do the same thing with my mum, albeit not with car finance.
 
scottomus0 said:
Is it possible for him to call his insurers to put himself as the main driver to the polo, letting them know im the registered keeper? also having me as a named driver on his insurance?
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I don't see why this should be a problem; also makes the most sense. Sort out the insurance as him as the main driver. You still 'own' the car during the PCP agreement but he pays you each month and you pay the finance company until the contract ends?
 
Tesla said:
How long have you had the car and how long is the term?
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only 9 months. its a 4 year lease. Im aware i can 'give' it back half way through the term, and be hated forever by them. is that correct?

DodgeeRascal said:
I don't see why this should be a problem; also makes the most sense. Sort out the insurance as him as the main driver. You still 'own' the car during the PCP agreement but he pays you each month and you pay the finance company until the contract ends?
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Yeah this seems the most reasonable. Its just, will his insurers do it...

the only other thing of course, is i will lose my no claims after 2 years wont i? Unless we find a insurer who allows named drivers to build too?
 
Is it a PCP or lease?

If it is a lease you can probably transfer it over. I don't see why they'd kick up a fuss.

A PCP is more like a loan and so that I can understand if there are issues.
 
scottomus0 said:
only 9 months. its a 4 year lease. Im aware i can 'give' it back half way through the term, and be hated forever by them. is that correct?



Yeah this seems the most reasonable. Its just, will his insurers do it...

the only other thing of course, is i will lose my no claims after 2 years wont i? Unless we find a insurer who allows named drivers to build too?
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If it's a pcp then I believe it will be once half the total outstanding finance is paid off which is not necessarily 2 years into a 4 year term. Usually around the 3 year mark I think.
 
asim18 said:
Why not? His brother's basically getting him a better credit rating for free.

I do the same thing with my mum, albeit not with car finance.
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It's fine until a payment is missed or something goes wrong...

I'm not saying his brother is the sort of person to do that, but situations come out of the blue from time to time.
 
Personally I would not get into this. You would be stuck paying the bill if your brother cannot pay you.

Simple thing to do here is to hand the car back to VW and tell your brother to go and get his own PCP in his name. He could get a loan but it will be more expensive.

Might be a bit late but would it not be possible to exchange the company car for a car allowance?
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Not a bad shout but depends how many miles he will be doing for work...
 
You cant just "hand back" a car on a PCP - the PCP has to be settled and the car sold back. So the dealer could buy it and settle the finance on his behalf, but only if the value is greater than the settlement.

If it was a new car then there's not a hope in hell that the value is higher - so he'd have to make up the shortfall, likely to be a few grand and obviously the deposit is gone too.
 
matthab said:
Personally I would not get into this. You would be stuck paying the bill if your brother cannot pay you.

Simple thing to do here is to hand the car back to VW and tell your brother to go and get his own PCP in his name. He could get a loan but it will be more expensive.



Not a bad shout but depends how many miles he will be doing for work...
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Not necessarily. Obviously without knowing the cost to settle the remaining finance, it is difficult to work it out, but loans are cheap just now. 3.6% on compare the market. A £10k loan comes in at £182 per month over 5 years, so may or may not be more expensive really. I often find it isn't really worth PCP-ing a 9 month old car because you don't get the better "new car" interest rate, or the new car discounts from the dealer. So he may well be cheaper with an actual loan.

That being said, I'm kinda with you here. I would personally put the car back, and take whatever financial hit you have to take. I certainly wouldn't trust MY brother to make payments in full and on time. I could see a situation like this causing more problems than it's worth. I would suggest he either takes a loan to cover the outstanding finance, or goes looking for his own deal.
 
Surely you just need to sort the insurance and you're fine. Your brother doesn't own the car, you still take ultimate responsibility for the finance and ownership. Can't see how it's any different to having a family car that more than one person uses as long as you're happy shouldering the responsibility of the finance.
 
Keep paying it yourself and have your brother pay you for it. That way if he does miss a payment it just affects you, rather than your credit history.

Also, sort out the insurance and all is fine. Also make sure your brother completely understands the GRV at the end of the contract and the options you will have available.
 
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