When dealing with a financed vehicle, especially one on a hire purchase or similar agreement, the lender retains ownership until the finance is fully paid off. The registered keeper, noted on the vehicle’s logbook (V5C), is not necessarily the legal owner but is responsible for tax and other obligations. To transfer the registered keeper from an individual to a company, several considerations need to be addressed:
Finance Agreement Terms: Your finance agreement may specify restrictions or require lender approval for any changes in the registered keeper. It’s crucial to review your contract and contact your finance provider for consent.
Insurance Implications: Transferring the registered keeper status could affect vehicle insurance. The insurance must cover the company once it becomes the registered keeper, potentially affecting premiums and policy terms.
DVLA Notification: To change the registered keeper, you must notify the DVLA using the V5C. Given the vehicle is financed, you would also typically need the lender’s consent, as some agreements prevent changes without this.
Company Responsibilities: If the transfer is approved, the company would assume responsibilities for vehicle-related duties, such as road tax and ensuring compliance with motoring laws.
Accounting and Tax Implications: Consider the accounting and tax ramifications of the transfer. As a company asset, the vehicle might be liable for different tax treatments, affecting both company accounts and tax liabilities.
It is advisable to consult with financial and legal advisors to ensure compliance with all legal requirements and to understand the full implications of transferring the registered keeper to a company where you are a director.