PCP and change of Registered Owner

[SimonYD]

Hi,

My Grandaughter has recently purchased an Audi on a PCP agreement and has gone abroad for six months. As she does not want to stand the considerable loss caused by handing the car back to the dealer after such a short time, she has left it with me. Meanwhile she is continuing to make the monthly payments to the PCP agreement. the car has been SORN and the insurance has been cancelled which is the part I’m concerned about. I would like to insure this car myself, unfortunately I have discovered that generally insurance companies do not want to insure a car that is not registered in the name of the insurer and neither do they want to insure it in the name of someone who is not even in the country.

I would be most obliged if you could tell me if there is likely to be a problem if the car’s registration is transferred into my name, if only temporally?

Many thanks

[Stuart Masson]

Hi Simon. The PCP agreement will almost certainly have a clause in it stating that the car must remain insured by the keeper at all times. It may also have a clause saying that it must be registered, so you’ll need to check that as well.

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