VW PCP - owner / keeper

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Andy Beats
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VW PCP - owner / keeper

Post by Andy Beats »

Has anyone on here ever PCP'd a car from VW on behalf of someone else?
We'd like to PCP a new Polo for our daughter, she can't get the credit as she's got zero history.
So I'd take the car on in my name, but we'd like her to be the main driver.
This seems to be a big no-no with some finance companies, they want the same person to pay for the car and be the main driver.
Insuring the car as me with her as a named driver is possible, but it's technically fronting as I wouldn't be the main driver at all.
We'd also like to put her private plate on, which would be another clue it's not me driving it!
Kinda stumped as to how we can get around this, but there must be a way as the dealer says they sell a lot of cars this way - they can't all be 'fronting' and just hoping the finance company doesn't find out - can they? :?:
Live chat with VW finance was clueless and the phone is a waste of time with them.
We could buy, which relieves the issue, but that means going for an older car and we want one with a warranty.
VW have some stonking PCP deals, just this conundrum to solve. :(
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Noonoo632
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Re: VW PCP - owner / keeper

Post by Noonoo632 »

Andy Beats wrote: Fri Jul 23, 2021 5:34 pm Has anyone on here ever PCP'd a car from VW on behalf of someone else?
We'd like to PCP a new Polo for our daughter, she can't get the credit as she's got zero history.
So I'd take the car on in my name, but we'd like her to be the main driver.
This seems to be a big no-no with some finance companies, they want the same person to pay for the car and be the main driver.
Insuring the car as me with her as a named driver is possible, but it's technically fronting as I wouldn't be the main driver at all.
We'd also like to put her private plate on, which would be another clue it's not me driving it!
Kinda stumped as to how we can get around this, but there must be a way as the dealer says they sell a lot of cars this way - they can't all be 'fronting' and just hoping the finance company doesn't find out - can they? :?:
Live chat with VW finance was clueless and the phone is a waste of time with them.
We could buy, which relieves the issue, but that means going for an older car and we want one with a warranty.
VW have some stonking PCP deals, just this conundrum to solve. :(

Is putting the pcp in her name with yourself as gaurantor an option? I have done this with my daughter's house which is considerably more than a car !!
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Re: VW PCP - owner / keeper

Post by Stuart_Rendall »

Andy Beats wrote: Fri Jul 23, 2021 5:34 pm Has anyone on here ever PCP'd a car from VW on behalf of someone else?
We'd like to PCP a new Polo for our daughter, she can't get the credit as she's got zero history.
So I'd take the car on in my name, but we'd like her to be the main driver.
This seems to be a big no-no with some finance companies, they want the same person to pay for the car and be the main driver.
Insuring the car as me with her as a named driver is possible, but it's technically fronting as I wouldn't be the main driver at all.
We'd also like to put her private plate on, which would be another clue it's not me driving it!
Kinda stumped as to how we can get around this, but there must be a way as the dealer says they sell a lot of cars this way - they can't all be 'fronting' and just hoping the finance company doesn't find out - can they? :?:
Live chat with VW finance was clueless and the phone is a waste of time with them.
We could buy, which relieves the issue, but that means going for an older car and we want one with a warranty.
VW have some stonking PCP deals, just this conundrum to solve. :(
My gran did this a while back for my sister, but she financed the car herself, took out insurance as a named driver, and put my sister as a named driver. The dealer knew about it and so did the insurance but nobody seemed to care.
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Re: VW PCP - owner / keeper

Post by monkeyhanger »

The dealership/VWFS shouldn't care who drives it, as long as she's adequately insured.

Finance the car in your name, state yourself as main driver for the free 5 days insurance (which really exists for ease of car taxation and give VW insurance a chance to snare you as a proper customer).

Then get your daughter to insure the car with an insurer of her choosing, and stipulate correctly who is the owner /registered keeper.

I've bought the wife a car in my name which is essentially hers. When she got a olicy of her own she stated spouse as registered keeper and it cost about a tenner more than (incorrectly) stating she was the keeper. Presumably there's an insurance stat which says there's marginally more risk in someone driving a car that isn't strictly theirs.
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Re: VW PCP - owner / keeper

Post by Bepis »

Just gone through this but with a HP agreement. Being 19 had basically no credit history (all the major credit score sites were putting me bang in the middle of their ratings) but I put about a third of the vehicle value as a deposit and was initially rejected but they requested a guarantor and or bank statements. With 3 months worth of bank statements I was accepted without a guarantor.

This was through a different car financing company (another large german car manufacturer) and they were of the opinion of putting the finance in someone else's name being against their T&Cs so a very big no no in their eyes.

However, I imagine it could be quite hard to prove.

I'd suggest asking about providing bank statements to prove income or if you could sign as a guarantor before going down that route as with all contracts nowadays the provider likes to reserve the right to cancel or withdraw from the contract at their discretion.
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Re: VW PCP - owner / keeper

Post by lancslad1985 »

Surely you can just act as a guarantor? When I got my first brand new car in my early 20s (didn’t learn to drive until I was 22) my dad was my guarantor but everything was in my name - the ownership document, the finance documents, etc.
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Re: VW PCP - owner / keeper

Post by monkeyhanger »

All this guarantor stuff is irrelevant if you're prepared to buy it in your name (taking the finance out in your name) and be the registered keeper.

The finance company needs to be concerned about 2 things :-

1. Someone's paying for it and that person passes all their credit checks.

2. It's correctly and adequately insured.

For point 1, You will be fully responsible for payments made, whether your daughter pays you or not.

For point 2, the main driver (your daughter) on the insurance policy does not have to be the registered keeper.

For the purposes of starting off hercredit history, I'd suggest she pays for her insurance in installments, takes out a credit card with a very small line of credit, buys a few small things every month with it and then pays it off every month, in full and on time.

Fronting is an insurance term and is illegal in insurance terms as you're misrepresenting risk to the insurer. Its not a thing in finance. Whoever takes the finance out is the person responsible for the loan and as such there is no misrepresentation. The risk is yours to bear.

Do you trust your daughter, or is she feckless with money?

I ask because a sister of mine "borrowed" £12k from my dad to "consolidate debts" and engineered a falling out with my mam and dad. Shortly afterwards her husband bought a newish Hyundai with the cash.

4 years later she got back in with the parents and never paid a penny back.
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Re: VW PCP - owner / keeper

Post by lancslad1985 »

I agree monkeyhanger, only reason I suggested guarantor route is then she gets the credit rating from paying the car off. That’s why my old man made me go that route when I was younger, to help get my credit rating rolling with a regular car payment, plus I had to pay insurance per month at the time.
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Re: VW PCP - owner / keeper

Post by Noonoo632 »

lancslad1985 wrote: Sun Jul 25, 2021 9:31 am I agree monkeyhanger, only reason I suggested guarantor route is then she gets the credit rating from paying the car off. That’s why my old man made me go that route when I was younger, to help get my credit rating rolling with a regular car payment, plus I had to pay insurance per month at the time.
This was why I said in my reply earlier to try the gaurantor route as then this then builds up her credit worthiness.
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Re: VW PCP - owner / keeper

Post by monkeyhanger »

The guarantor route will probably attract a hefty PCP APR rate.
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Re: VW PCP - owner / keeper

Post by Andy Beats »

monkeyhanger wrote: Sun Jul 25, 2021 6:51 am The finance company needs to be concerned about 2 things :-

1. Someone's paying for it and that person passes all their credit checks.

2. It's correctly and adequately insured.


The person taking out the PCP agreement has to be the main driver.
There are posts in other forums where VW finance have 'found out' the person taking out the finance isn't the main driver and they've asked for full settlement or the car back.
There's no way around it without committing fraud, so we've applied for credit in her name and awaiting a response.
Even if I were of the type to just 'hide' the fact I'm not the main driver, putting her private plate on which clearly has a girl's name would be a giveaway. :D
Last edited by Andy Beats on Mon Jul 26, 2021 2:42 pm, edited 3 times in total.
Andy Beats
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Re: VW PCP - owner / keeper

Post by Andy Beats »

Stuart_Rendall wrote: Fri Jul 23, 2021 6:39 pm My gran did this a while back for my sister, but she financed the car herself, took out insurance as a named driver, and put my sister as a named driver. The dealer knew about it and so did the insurance but nobody seemed to care.
If she financed the car herself, she can do what she likes with the car.
This is very specifically a PCP issue, the person taking the PCP out has to be the main driver - which I will not be, lucky if I drive it at all.
Doing anything else is fraud.
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Re: VW PCP - owner / keeper

Post by Stuart_Rendall »

Andy Beats wrote: Mon Jul 26, 2021 11:44 am If she financed the car herself, she can do what she likes with the car.
This is very specifically a PCP issue, the person taking the PCP out has to be the main driver - which I will not be, lucky if I drive it at all.
Doing anything else is fraud.
My gran went through a Kia dealer and took the finance out, spoke to the dealer about my sister using the car and the fact my nan had no license but the dealer was still happy to approve the finance with full acknowledgement that the car will be driven by a separate person to the registered keeper. Since the finance was approved my sister settled the finance via my nan and has built up enough credit to finance her own car. Suppose it all depends on situation and who you speak with.
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Re: VW PCP - owner / keeper

Post by Andy Beats »

Stuart_Rendall wrote: Mon Jul 26, 2021 3:58 pm My gran went through a Kia dealer and took the finance out, spoke to the dealer about my sister using the car and the fact my nan had no license but the dealer was still happy to approve the finance with full acknowledgement that the car will be driven by a separate person to the registered keeper. Since the finance was approved my sister settled the finance via my nan and has built up enough credit to finance her own car. Suppose it all depends on situation and who you speak with.
This is my point though.
The dealer told your Gran it was fine when it may not have been - although you're not clear on what type of finance it was, maybe HP is different from PCP.
Two VW dealers told me the same thing about me PCP,ing a car for our daughter - "yeah yeah it's fine, we do it all the time"
It's not fine - they're either unaware or simply don't care to get a sale.
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Re: VW PCP - owner / keeper

Post by Stuart_Rendall »

Andy Beats wrote: Mon Jul 26, 2021 4:01 pm This is my point though.
The dealer told your Gran it was fine when it may not have been - although you're not clear on what type of finance it was, maybe HP is different from PCP.
Two VW dealers told me the same thing about me PCP,ing a car for our daughter - "yeah yeah it's fine, we do it all the time"
It's not fine - they're either unaware or simply don't care to get a sale.
It was PCP, and if the dealer doesn't care then why should you? Even with a plate on it that may state a females name is no basis for a finance company to get suspicious. At the end of the day it's up to you which route you take. I could see how people may frown at it though.
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