Are you thinking about financing a car, but find the terms like "legal owner" and "registered keeper" a bit confusing? Don't worry; we are here to clear up the confusion about who legally owns a car on finance, and who is responsible for it.

Simplifying the Terms

What is Legal Ownership?

When you finance a car with Hire Purchase, Personal Contract Purchase or Conditional Sale car finance options, the car is technically owned by the finance company until all payments are made. The finance company is the legal owner of the vehicle. You have the car and can use it, but it's not your possession from a legal point of view.

What is a Registered Keeper?

The registered keeper is listed on the car's V5C registration document (DVLA official document) and takes care of the day-to-day aspects of the car, such as making sure it's roadworthy with MOTs, and that it is taxed and insured. It is important to note that the registered keeper is who DVLA will contact about any specific vehicle-related topics or issues. 

If you take out a car finance agreement, you will be the registered keeper of the car.

Car Finance Options and Ownership

The good news is, that with Ozoomi’s three options of car finance, the lender is always the legal owner, and you are the registered keeper during the finance repayment period. 

Once the final payment of the loan has been made, you’ll have different options regarding ownership and we have detailed these below.

• Hire Purchase (HP) : After all payments and a minimal 'option to purchase' fee, you become the legal owner.
• Personal Contract Purchase (PCP) : You have the option to make the final balloon payment to own the car, or you can return it or enter a new agreement.
• Conditional Sale (CS) : Regular payments are made until the total cost is covered, no final balloon payment is necessary. The legal ownership is automatically transferred to you.

Ownership vs. Keeper in Simple Terms

Documentation and Responsibility

As a keeper, you'll receive all legal documents and need to ensure the car meets legal standards like MOT, tax, and servicing.

Changing the Agreement Name

The finance agreement can't change names until it's settled; you can't sell the car or change the keeper officially while in the agreement.

DVLA Notifications

The finance company must inform the DVLA about the keeper at the start and end of the agreement, or they could be liable for your traffic offences.

Make sure that you ask the questions when entering a finance agreement. Ask about the specifics of how your ownership transfer timeline looks like (if applicable), and specifics of your keeper responsibilities.