PCP car but brother wants it...

[scottomus0]

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.

 

[scottomus0]

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.

He/I wont be keeping the car at the end of the term. it will be going back to them.

 

[scottomus0]

How long have you had the car and how long is the term?

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?

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?

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?

 

[scottomus0]

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...

I'm paying the bill now anyway, it's just dead money as its sat there.

Unfortunately due to miles I do they don't offer cash alternative.

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.

Problem is, he won't want the car for 5 years or whatever it will take to pay in full. He's quite happy with it for a couple years though to prevent him buying something outrageous.

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.

That's the plan, just set up a standing order.

I'd be very cautious going into this , he maybe your bro but where finances are concerned even family can burn you

I certainly can understand people's concerns, I've witnesses it myself but my bros good for money and not an immoral person!

So it seems get him to insure himself as the main driver, me as a named?

Can you actually have 2 main drivers on different policy's? I only ask as I would obviously lose my NCB if not insured in 2 years correct?

 

[scottomus0]

Can you do that? How does that work? I thought taking it in your name means your the main driver?

 

[scottomus0]

That is something i need to ask. As i dont deal with any of that. Just have my car to use and dont worry about anything else!

 

[scottomus0]

I appreciate the input. So it seems the way forward is to get call his insurers, or find a new one to quote as a main driver with me as a named.

As my insurance runs until November. Will he have to wait until my year is up, or can he get insured at the same time whilst I am?

 

[scottomus0]

Cancel yours when he takes his own policy out.

Or call the existing insurer and ask to add him, but tellvthen he will be the main driver - not sure if they will do that mid term or not but no harm asking

I'd lose my NCB then so surely not best option since the year is only 2 months away.