Our article covers the key questions you might have when it comes to the V5 on a lease car. We’ve covered everything you need to know about the logbook (V5) and the registered keeper of your lease vehicle, as well as what this means for you as the driver.
What is the Difference Between the V5 and the Logbook?
A V5, (correctly termed as a V5C despite the term V5 commonly being used), is the same thing as the logbook of a vehicle. The V5 is a vehicle registration certificate issued upon registration of a vehicle in the UK, by the DVLA, providing the details of a vehicle’s registered keeper.
Do You Get a V5 with a Lease Car?
You will not receive a V5 (logbook) document from the DVLA since you won’t be the registered keeper. The registered keeper of a vehicle is the person or company who appears on the V5 (logbook) issued by the DVLA and they keep the logbook.
Who is the Registered Keeper of a Lease Car?
One of the main differences between owning a car outright and leasing one, is the registered keeper. While a driver who owns their own vehicle will quite often also be the registered keeper, the finance company is the registered keeper of a lease car in almost all cases, not the driver.
What is a Registered Keeper?
The registered keeper is the person who is responsible for the vehicle, including its insurance, road tax and maintenance. This would normally, but not always, be the owner of a vehicle, and indeed it is in the case of most car lease scenarios, where the finance provider is both owner and registered keeper.
However, a registered keeper can be different to the person who bought it. For example, a parent may buy their child a car but their child will be the registered keeper of the vehicle.
The registered keeper is the person who looks after the car and is responsible for:
- Speeding tickets, traffic violations or parking fines.
- Making sure the vehicle is taxed and has a valid MOT.
- Keeping the vehicle in a safe, roadworthy condition.
Who is the Owner of a Lease Vehicle?
The funder or finance provider are almost always both the owner and the registered keeper of a leased vehicle.
What is the Difference Between a Registered Keeper and Owner of a Lease Vehicle?
In almost all cases of lease vehicles, the owner and registered keeper are both the finance company.
So Don’t Lease Drivers Have Responsibility for the Vehicle?
Although it is registered keepers who normally have responsibilities for a vehicle, under the terms of the lease agreement, certain responsibilities are handed over to the driver. These include the responsibility to pay driving fines, insure and maintain the vehicle etc. However, a lease car driver may choose to take out a maintenance package with the lease provider. The finance company will arrange the road tax.
Can a Lease Car Driver Ever Become the Owner?
Leasing a vehicle is essentially renting it on a long-term basis and the total cost of the rentals does not equate to the value of the entire car. Therefore a lease driver will not automatically become the owner of the car at the end of the agreement. However some leases offer a buy out option at the end of the lease. Find out about this and more regarding what happens at the end of a car lease here.
Will the Finance Company as the Registered Keeper Pay my Speeding Tickets?
No. As outlined in your lease agreement, Penalty Notices and parking or speeding fines will be passed on to you as the known driver of the vehicle. Your funder may pay your penalty upfront and notify you of the fine then add it to your monthly payments. Alternatively, they may forward you the fine documentation to deal with yourself. In either instance an admin charge may apply. You will be able to see how speeding fines and parking tickets are dealt with in your leasing contract. You can also find out more in our driving fines article.
Will I Encounter Issues Without a V5 Such as Driving Abroad?
Not holding the V5 just means you will normally need to get permission from your leasing company to do certain things, however they’re common scenarios and most don’t pose a challenge. If you want to travel abroad with your car, for example, you’ll need to speak to your funder first in order for them to provide the correct documentation before you travel (if your car is leased through Xcite and you don’t know who the funder is, we can direct you to them). To find out more about travelling abroad in a lease vehicle see our dedicated guide.
Another common scenario is requiring a parking permit. Applying for one without a V5 document will require the V5 summary for your vehicle and letter of authority from your funder which can also be easily obtained. There will be small admin charges in such instances.
Does the Registered Keeper Affect my Insurance?
When leasing, you just need to remember that you do not own the vehicle. Since it remains the property of the car leasing company, they will tend to insist you obtain fully comprehensive insurance for the vehicle. However, this would normally be the insurance many drivers would choose regardless of whether they were leasing or owning a vehicle. Just make sure you tell your insurance company that your vehicle is leased.
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