We know that car leasing itself can seem a bit scary and a bit of an unknown at the best of times, let alone working out who the legal owner and registered keeper of a lease car is. If you've never contemplated leasing a car, you might not even know what 'registered keeper' means. It's actually a separate (but still related) thing from being the legal owner.
Short answer: you won't be the registered keeper of a lease car, but that's not entirely a bad thing. In fact, in a couple of ways, it can even be a very good thing.
In this handy guide, we'll explain to you what those advantages and disadvantages are, hopefully helping you on your leasing journey!
Sit tight, amigos.
Who is the Legal Owner of a Leased Car?
Because car leasing is essentially like a long-term rent, you don't own the car. The leasing company does.
That's opposed to buying a car outright. In this case, you've paid for the car and have proof of purchase and are therefore the legal owner. Similar to a PCP deal although you have the chance to own the car at the end of the PCP contract by making what's known as the final 'balloon payment'. Neither of those is an option with a leased car.
Who is the Registered Keeper of a Lease Car?
The leasing company.
In the majority of cases, owning a car will automatically make you the registered keeper, and because the leasing company owns the car, that means they are also the registered keeper.
There are some exceptions to this, like if you have a finance lease on a van rather than a car, but in the vast majority of cases, the leasing company is the registered keeper.
But what does being the registered keeper entail?
Basically, it means being responsible for taxing the vehicle and making sure that it's on the relevant official DVLA and police records. The bill for road tax will be invoiced to the registered keeper directly. On top of that, they'll also receive any parking or speeding fines and other driving-related offences that are committed, but that doesn't mean you won't pay for them.
Is Not Being the Registered Keeper a Bad Thing?
So, bottom line: when leasing a car, you're usually not going to be either the legal owner or the registered keeper of the car.
However, this has less everyday consequences than you might think. Or at least, less everyday consequences that will drastically affect your driving experience on a regular basis.
Plus, there are pros as well as cons to not being the registered keeper of your lease car.
Let's take a look at them.
Why Not Being the Registered Keeper Could be a Good Thing
You don't need to worry about road tax
Road tax applies to all vehicle types, and lease cars are no exception. Although the price is usually factored into your lease payments, you won't have to worry about the admin side of things when it comes to tax.
Happy days!
You don't need to worry about selling the car on
Yep, with a lease deal, you simply hand the car back when the contract ends. No hassle, no fuss, and no need to worry about haggling or determining what the vehicle is now worth (often less than half of its original price after the first 3 years). That doesn't of course mean you don't have to return the car in good condition.
Why Not Being the Registered Keeper Could be a Bad Thing
Your customisation options will be limited
Whilst it's possible to add additional 'extras' to your car when first negotiating the leasing contract with your finance provider, you won't be able to make any modifications to the car after you've received it. An exception is for personalised registration plates, which we'll get to.
How Does Not Being the Registered Keeper Affect Insurance?
You won't get car insurance included with a lease deal, so you'll have to sort this out yourself, and you're generally advised to go for a fully comprehensive policy. Not being the registered keeper won't affect your premiums, but you will still have to cover the difference between the cost of the car and the insurance pay-out (unless you get gap insurance) in the event that your car is stolen or your lease is written off.
Oh, and you'll need to tell your insurance provider who the owner and registered keeper of the vehicle is before you can get a quote.
What Happens If I Get a Parking Fine or Speeding Ticket?
Because you aren't the registered keeper of your lease car, in the event that you land yourself in some trouble via a parking fine or a speeding ticket, the fine will normally be sent directly to your finance provider.
But don't think that lets you off the hook! You'll still end up paying for the fine eventually. The finance company may choose to pass over your details to the authority issuing the fine and the charge will then be sent to you directly. Alternatively, they may pay for it themselves and the cost will be passed over to you at the end of your lease agreement, or the cost will be included with your next monthly payment. In both scenarios, you may also be charged an additional admin fee (usually in the region of around £25) to cover the hassle of them having to deal with the whole process.
Can I Take My Lease Vehicle Abroad if I'm Not the Registered Keeper?
Yes, but you're going to have to get permission to do so. What you need to do is contact your finance company and they'll provide you with the documentation to show that you have this permission.
You'll need a VE103B form. This contains the vehicle details and the name and address of the driver. It counts as authorisation from the finance provider for you to use the car abroad. It's a legal document and serves as an alternative to a standard V5C log book (which stays with the finance provider and not you).
Can I Add a Private Registration Plate to the Vehicle?
Seeing as you're not the registered keeper of your lease car, if you want to become part of the 4% of British drivers who have their own personalised registration plate, you're going to have to go through a more lengthy process to do so than for someone who owns their car outright.
Most importantly, you need to make sure that the plate is properly registered. You'll need to get your finance provider to agree to the process. As they're the legal owners and registered keepers of your lease car, they'll also have to become owners of the personalised plate, so just make sure that they're happy with that.
Also, if you want to keep your number plate at the end of your lease contract, you'll need written acknowledgment that they're happy to release it to you.
What about Business Leasing?
We have whole posts on business leasing and how it works, and it's more or less the same as personal leasing when it comes to who the registered keeper is. In other words, it's still the leasing company, not you.
The only difference with business leasing is that it could make certain processes a little more complicated. For example, if you receive a parking fine, it might go to your leasing company, then your employer, and finally to you. Personal leasing cuts out the employer stage.
Summing Up
Remember, you’re essentially only renting a car when you lease it, so you have no ownership over it and therefore no registered keeper status. But at the end of the day, even though not being the registered keeper of the vehicle is part and parcel of driving a leased car, it doesn't drastically change how you go about your daily driving needs.
Unless you feel the need to own the car for bragging rights, there's no major real world limitations when it comes to leasing a car. So long as you fulfil the terms and conditions of your lease and don't go driving off into a ditch, you'll find that it's mostly plain sailing.
Besides, leasing usually works out a lot cheaper anyway!
Leasing With LeaseLoco
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Plus, all of our available deals include . . . * FREE delivery to your door (mainland UK) * Manufacturer's warranty * Breakdown cover * Road tax
If you’ve read the benefits of car leasing here in this guide and think that leasing a car is the best option for you then why not check out the hottest deals available to find one that suits you best?
FAQs
Who is the legal owner of a leased car?
The finance provider (i.e. the leasing company) is the legal owner of a leased car.
Who holds the V5 of a leased car?
The finance provider/leasing company does. The registered keeper will be named on the V5C (or ‘log book’) document which comes with every new car.