Can You Put a Private Plate on a Financed Car?

Many individuals personalize their vehicles with a private registration plate. This often leads to questions about placing such a plate on a vehicle under a finance agreement. Understanding vehicle ownership and registration when a car is financed is essential before changing plates.

Vehicle Registration and Finance Arrangements

When a vehicle is purchased through a finance agreement, a distinction arises between the “registered keeper” and the “legal owner.” The registered keeper is the individual responsible for the car’s daily use, including its registration, insurance, and road tax. The borrower is listed on the vehicle’s registration documents as the party responsible for its operation.

Conversely, the finance company retains legal ownership of the vehicle. Until the loan is fully repaid, the lender holds the vehicle’s title. This arrangement means the finance company has a legal claim to the vehicle as collateral for the loan. While a private plate personalizes the car, it remains tied to the vehicle’s identity, which is legally owned by the finance provider.

Securing Permission from the Finance Provider

Due to the finance company’s legal ownership, obtaining their explicit permission is a necessary step before assigning a private registration plate to a financed vehicle. The private plate becomes an integral part of the vehicle’s identity, an asset belonging to the lender until the finance agreement is satisfied. Failing to secure this permission could be considered a breach of the finance contract.

Initiating this process involves contacting the specific finance company directly. Borrowers should be prepared to provide their account number, vehicle information, and the specifics of the desired private plate. Finance providers may have specific clauses in their agreements regarding vehicle modifications or registration changes. They might also levy an administrative fee for processing these changes. It is advisable to obtain written confirmation of their consent to avoid future complications.

Assigning and Managing the Private Registration

Once permission has been secured from the finance provider, the procedural steps for officially assigning the private registration plate can commence. This involves interacting with the relevant state Department of Motor Vehicles (DMV). The process requires submitting specific forms, including the vehicle’s registration certificate and documentation proving the finance company’s consent.

Managing the private plate throughout the finance term and beyond requires attention. If the finance agreement ends and the vehicle is purchased outright, the private plate can remain with the car. However, if the vehicle is sold, traded in, or returned to the finance company, steps must be taken to retain the private plate. This involves applying to the DMV to “retain” the private plate, which can incur a fee and may require the original standard plates to be re-assigned to the vehicle. This retention process should be initiated several weeks before the vehicle is returned, as processing times can vary.