Tesla Financial Services PCP and Insurance

[bioshox]

Hello

I have just taken out a PCP with Tesla via Tesla Financial Services as the creditors (not BlackHorse).

The Pre Contract Agreement clearly states Tesla Financial Services remain legal owners of the vehicle until all payments are made, and I am the registered user (presume they actually mean keeper here - I.E person stated on V5C).

With this in mind, is it correct that I have told the insurance company that I am the registered keeper yet Tesla Financial Services are the legal owners?

I know this seems obvious, but I’ve heard conflicting things from people insuring a PCP car. A lot of people seem to put themselves as both the legal owner and registered keeper.

I think people are confused or misunderstand that a V5C with your name on it is not proof of ownership in any way, simply having a V5C doesn’t make you a legal owner of the car.

Am I right with the above? What have other people done regarding this when insuring a PCP car?

 

[nkajkmuk]

Hello

I have just taken out a PCP with Tesla via Tesla Financial Services as the creditors (not BlackHorse).

The Pre Contract Agreement clearly states Tesla Financial Services remain legal owners of the vehicle until all payments are made, and I am the registered user (presume they actually mean keeper here - I.E person stated on V5C).

With this in mind, is it correct that I have told the insurance company that I am the registered keeper yet Tesla Financial Services are the legal owners?

I know this seems obvious, but I’ve heard conflicting things from people insuring a PCP car. A lot of people seem to put themselves as both the legal owner and registered keeper.

I think people are confused or misunderstand that a V5C with your name on it is not proof of ownership in any way, simply having a V5C doesn’t make you a legal owner of the car.

Am I right with the above? What have other people done regarding this when insuring a PCP car?

That is black and white to me. A car on finance is usually owned by the financing firm. Unless in a rare circumstance where the car is hypothecated i.e. used as collateral for the loan and the borrower retains full ownership (not the usual HP/PCP) arrangement.

If one were pedantic, the V5 is where this falls apart. A car on PCP would in theory have two owners when the car is brought either at the end or pet way through the finance agreement. Nevertheless the v5 will state zero previous owners at the end of a transaction.


Edit: Have been pointed out that v5 only ever had previous registered keepers and not owners.

 

[SpareHeadOne]

That's correct, the insurance company should register the car on their system as "privately leased" (or whatever term they use) to indicate that you are the registered keeper, but not the legal owner.

Years ago they would increase your premium, but these days most cars are bought on finance so I don't think they change the premium any more - In fact one rep I was talking to said they assumed all cars were bought on finance these days and they only asked who was the registered keeper.

 

[bioshox]

That is black and white to me. A car on finance is usually owned by the financing firm. Unless in a rare circumstance where the car is hypothecated i.e. used as collateral for the loan and the borrower retains full ownership (not the usual HP/PCP) arrangement.

If one were pedantic, the V5 is where this falls apart. A car on PCP would in theory have two owners when the car is brought either at the end or pet way through the finance agreement. Nevertheless the v5 will state zero previous owners at the end of a transaction.


Edit: Have been pointed out that v5 only ever had previous registered keepers and not owners.

Yeah this is the thing. V5C in no way indicates who owns the vehicle. Just who is responsible for it, fines, etc. A lot of people seem to misunderstand this, bit odd really as the V5C says in big letters “not proof of ownership”.

Ownership is a totally separate matter.

In any case I’m fairly positive I’ve done the right thing. Informing the insurance that I am the registered keeper and the finance company are the legal owner.

 

[Tony Hoyle]

I've never had an insurance company ask me although I bet they do an HPI check anyway which will give them that information.