PCP car but brother wants it...

I have done this with my wife with the older Fiesta on a simple straight repayment finance. Unsure about PCP though so you will need to check.

Put the car in her name (sold it her for £1) and she insured it as owner. I pay the finance as usual and she gives me a contribution. As long as the finance is paid and she is insured it works unless I am missing something ? No need for the finance company to concern as the finance is a straight finance for a money loan and this is still the same with me.

For a brother ? Well do you trust him enough ?
 
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Catanonia said:
I have done this with my wife with the older Fiesta on a simple straight repayment finance. Unsure about PCP though so you will need to check.

Put the car in her name (sold it her for £1) and she insured it as owner. I pay the finance as usual and she gives me a contribution. As long as the finance is paid and she is insured it works unless I am missing something ? No need for the finance company to concern as the finance is a straight finance for a money loan and this is still the same with me.

For a brother ? Well do you trust him enough ?
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Until the finance is repaid the car is not yours to sell though, it's property of the finance company.
That's my understanding at least.
 
Catanonia said:
I have done this with my wife with the older Fiesta on a simple straight repayment finance. Unsure about PCP though so you will need to check.

Put the car in her name (sold it her for £1) and she insured it as owner. I pay the finance as usual and she gives me a contribution. As long as the finance is paid and she is insured it works unless I am missing something ? No need for the finance company to concern as the finance is a straight finance for a money loan and this is still the same with me.

For a brother ? Well do you trust him enough ?
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Why even bother selling her the car? Surely you're just making it less valuable by having 1 more owner :confused:

Why not just change the insurance so she is the policy holder for that vehicle?
 
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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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.

xs2man said:
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.
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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.

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

JBuk said:
I'd be very cautious going into this , he maybe your bro but where finances are concerned even family can burn you
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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?
 
You can't(/shouldn't) insure the same car under different names, no

What you can do is take a policy in your name, so you earn the ncb but with him as the main driver - or at least you can do this in a husband/wife scenario

Obviously anything happens and its your ncb up the swanny
 
What you can do is alternate years. So one year it's in your name with your bro as named driver, then next year you swap around. That way no-one loses their ncd, but then you don't build it as fast either.

But you can keep everything else in your name, and have your brother pay you for it as far as I know.
 
xs2man said:
What you can do is alternate years. So one year it's in your name with your bro as named driver, then next year you swap around. That way no-one loses their ncd, but then you don't build it as fast either.

But you can keep everything else in your name, and have your brother pay you for it as far as I know.
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But if his brother is the main driver, then for half of those years he'd be fronting.
 
Marvt74 said:
I did it for my dad, I was the registered owner but put him as the main driver for a year as I wasn't using the car.
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That's not the same as:

xs2man said:
What you can do is alternate years. So one year it's in your name with your bro as named driver, then next year you swap around. That way no-one loses their ncd, but then you don't build it as fast either.

But you can keep everything else in your name, and have your brother pay you for it as far as I know.
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This would be fronting. Don't do it.

Aren't you using your NCD on your company car?
 
Catanonia said:
I have done this with my wife with the older Fiesta on a simple straight repayment finance. Unsure about PCP though so you will need to check.

Put the car in her name (sold it her for £1) and she insured it as owner. I pay the finance as usual and she gives me a contribution. As long as the finance is paid and she is insured it works unless I am missing something ? No need for the finance company to concern as the finance is a straight finance for a money loan and this is still the same with me.
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This sounds bizarre.
If you are allowed to sell the car with outstanding finance (and not settling the finance) then presumably the finance must be an unsecured loan (or at least not secured against the vehicle in question) in which case it is surely irrelevant to the whole transaction. If that is the case, I don't understand why you needed to sell her the car which as someone else pointed out presumably increases the number of keepers.
Perhaps there is some advantage in terms of cheaper insurance quotes(?)
 
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?
 
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
 
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