The never ever

A colleague has just purchased a FIAT Punto that was a 'new vehicle'. The vehicle was purchased using her old FIAT in part ex. As her old car was not quite the right age it was not done under the scrappage scheme but a 'discount' of £2,000 was given. Everything with the new car is fine. However, she has made an enquiry with the garage regarding the vehicle registration document that has not arrived from DVLA to be told by the garage that she will not have this document for at least 6 months as the 'deal' was done using a leasing scheme? They will copy the document etc. but say that she will not be shown as the keeper for the first six months? Is this right/legal? Will it affect the future value of the vehicle? Your help and advice will be very much appreciated,

Asked on 13 February 2010 by D.P., via e-mail

Answered by Honest John

I think this is becoming very dangerous and now advise against it. Firstly, she will need to get the approval of her insurer because she will not be the registered keeper of the car for 6 months. Secondly, speeding, parking and congestion tax tickets will not reach here quickly enough, possibly causing an increased penalty. But thirdly, unless you actually paid the fleet itself for the car, and that was documented, the fleet that remains the registered keeper could re-sell, mortgage, or take a loan out using the car as security in the meantime, and, if they default, the car could be snatched back from you by the finance house. I think the only way to make a deferred keepership purchase is as a proper lease contract, either with all payments upfront, or one down payment as deposit then the first 6 months lease payments then a balloon payment after 6 months.

Tags: buying new cars legal issues

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