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Car finance ›
What happens if your financed car is stolen?
Updated: Tuesday, 28 November 2023
Regardless of when and where it happens, being a victim of theft can be incredibly traumatic. So, if disaster strikes and someone steals your financed car, keeping a cool head can be difficult.
In this guide, we explain what happens if your car gets stolen on finance, and explain some of the steps you need to take.
If you’re an existing Moneybarn customer and you have been in an accident or your vehicle has been damaged or stolen, please call our Customer Services Team as soon as you can. Every incident is different, so once we know what’s happened, we can help guide you through the next steps.
What should you do if your car on finance is stolen?
If you are still within the repayment term of your finance agreement and your car is stolen, you may be unsure what actions to take.
In most types of car finance, you aren’t the vehicle’s legal owner until the end of your agreement (you are only the registered keeper), meaning you have certain responsibilities if it is stolen.
Below is a list of who you’ll need to contact and in what order if your financed car has been stolen.
1. Contact the police
The first thing to do is contact the police. The number you should call will depend on whether you have been a victim of violent or non-violent theft.
Violent car thefts involve the use of force and put you or the people around you in immediate physical danger. In this instance, you should contact the police on 999.
If you are the victim of a non-violent theft, such as keyless car theft or lock picking, and you don’t feel your safety is threatened, ring the police on 101.
When you speak to the police, give them as many details as possible. Essential information includes the stolen car’s registration number, make, model, colour, and any modifications.
These details will help them to identify the vehicle on any CCTV or ANPR (automatic numberplate recognition).
Once they have taken the relevant information, the police will give you a crime reference number. It’s important you make a note of this, as your finance and insurance companies will need this too.
The police will also inform the DVLA that the vehicle has been stolen and provide them with the crime reference number.
2. Contact your insurance company
Next, you must contact your insurance provider with the crime reference number to get the ball rolling with a stolen vehicle claim.
It’s important to note that if you have already received your insurance payout and your car is recovered, your car insurance company will take ownership of the car.
If your car is returned to you before you receive the insurance payout amount, you must tell your insurer immediately.
3. Contact the finance company
After contacting the police and your insurer, you must get in touch with the car finance provider and give them the crime reference number.
If the police cannot recover your financed car, the insurance company will typically pay the settlement figure to the finance company. If your finance agreement was in positive equity when your vehicle was stolen, your insurance company will also pay you the difference between the finance settlement figure and your car’s market value.
Everyone’s circumstances are different, so that’s why it’s important to speak to your insurance and finance companies as soon as you can.
Just because your car has been stolen, doesn’t mean you should stop paying your car finance. If you do, it may affect your ability to get credit in the future. For more information, read our blog that explains what happens if you don’t pay your car finance.
4. Contact the DVLA
If your insurer pays out for the stolen vehicle, you must inform the DVLA that the insurance company is now the legal owner.
You must do this by completing the ‘Selling, transferring or part exchanging this vehicle to a motor trader’ section of the vehicle registration (V5C) document (also known as a logbook) and sending it to the DVLA.
If you do this, you must give the remaining part of the logbook to the insurance company.
Alternatively, you can tell the DVLA online.
What is GAP insurance?
If you are concerned about losing money on your finance car, either through car theft or negative equity, you could take out Guaranteed Asset Protection (GAP) insurance.
GAP insurance covers the difference between what an insurer will pay you for your car and what you owe on the finance. It will also cover you if your car is stolen or written off in an accident.
GAP insurance is optional, so whether you take it out will depend on your circumstances. It’s important to note that you can’t take out a GAP insurance policy and apply it to an accident or theft retrospectively (after the event); you’ll need to have the cover before your car is stolen for it to be valid.
Will you get a road tax refund if your car is stolen?
If your stolen car is not returned within a week of being reported to the police, you can request a refund on your road tax (also known as vehicle excise duty or VED).
You claim a VED refund by filling in a V33 form. If you pay annually, you will get a cheque refunding any full months left on your vehicle tax.
Refunds are calculated from the date you contact the DVLA, and cheques are sent to the registered keeper listed on the vehicle log book.
It’s important to note that if you pay your road tax monthly, you cannot claim a refund, but you can inform the DVLA, and they will cancel the direct debit.
You will not receive a refund for:
- Credit card fees
- 5% surcharges on some direct debit payments
- 10% surcharges on single 6-month payments
For more information, see the DVLA’s full guidance on vehicle tax refunds if your car is stolen.
What happens if your car has a private registration?
If you want to keep your private registration, it’s best to apply to the DVLA as soon as possible after you report your vehicle stolen. You must apply within 2 years and 6 months from the date of the theft.
Applying to keep your personalised registration means it will stay in your name and ensures you can apply it to another vehicle later.
You can only get your private registration back if the following applies:
- You have told the police about the theft
- The vehicle had a valid MOT certificate and up-to-date tax when it was stolen
Applying to keep your registration number costs £80. You will also need to provide the following information to the DVLA:
- A completed V317 ‘transfer or retain a vehicle registration number‘ form
- The vehicle’s V5C log book or the green ‘new keeper slip’ with a completed V62 ‘application for a vehicle registration certificate V5C‘
For more information, see the DVLA’s full guidance on what to do if your car with a personalised plate has been stolen.
How can I help to prevent my car from being stolen?
Taking the following safety precautions can help to reduce the chances of your car being stolen:
- Ensure your car is locked whenever it’s not in use.
- Park in well-lit, busy areas or car parks with CCTV.
- Don’t leave your valuables on show – lock them away in the glove compartment or boot, or preferably keep them out of your car.
- If you have a car with keyless entry, keep the key in a signal-blocking pouch.
- Consider fitting Thatcham-approved alarm systems and trackers.
- If you’re selling your car, go with potential buyers on any test drives.
- Use deterrents, like steering wheel locks and alarms.
- Don’t leave your car running unattended.
Regardless of when and where it happens, being a victim of theft can be incredibly traumatic. So, if disaster strikes and someone steals your financed car, keeping a cool head can be difficult.
In this guide, we explain what happens if your car gets stolen on finance, and explain some of the steps you need to take.
If you’re an existing Moneybarn customer and you have been in an accident or your vehicle has been damaged or stolen, please call our Customer Services Team as soon as you can. Every incident is different, so once we know what’s happened, we can help guide you through the next steps.
What should you do if your car on finance is stolen?
If you are still within the repayment term of your finance agreement and your car is stolen, you may be unsure what actions to take.
In most types of car finance, you aren’t the vehicle’s legal owner until the end of your agreement (you are only the registered keeper), meaning you have certain responsibilities if it is stolen.
Below is a list of who you’ll need to contact and in what order if your financed car has been stolen.
1. Contact the police
The first thing to do is contact the police. The number you should call will depend on whether you have been a victim of violent or non-violent theft.
Violent car thefts involve the use of force and put you or the people around you in immediate physical danger. In this instance, you should contact the police on 999.
If you are the victim of a non-violent theft, such as keyless car theft or lock picking, and you don’t feel your safety is threatened, ring the police on 101.
When you speak to the police, give them as many details as possible. Essential information includes the stolen car’s registration number, make, model, colour, and any modifications.
These details will help them to identify the vehicle on any CCTV or ANPR (automatic numberplate recognition).
Once they have taken the relevant information, the police will give you a crime reference number. It’s important you make a note of this, as your finance and insurance companies will need this too.
The police will also inform the DVLA that the vehicle has been stolen and provide them with the crime reference number.
2. Contact your insurance company
Next, you must contact your insurance provider with the crime reference number to get the ball rolling with a stolen vehicle claim.
It’s important to note that if you have already received your insurance payout and your car is recovered, your car insurance company will take ownership of the car.
If your car is returned to you before you receive the insurance payout amount, you must tell your insurer immediately.
3. Contact the finance company
After contacting the police and your insurer, you must get in touch with the car finance provider and give them the crime reference number.
If the police cannot recover your financed car, the insurance company will typically pay the settlement figure to the finance company. If your finance agreement was in positive equity when your vehicle was stolen, your insurance company will also pay you the difference between the finance settlement figure and your car’s market value.
Everyone’s circumstances are different, so that’s why it’s important to speak to your insurance and finance companies as soon as you can.
Just because your car has been stolen, doesn’t mean you should stop paying your car finance. If you do, it may affect your ability to get credit in the future. For more information, read our blog that explains what happens if you don’t pay your car finance.
4. Contact the DVLA
If your insurer pays out for the stolen vehicle, you must inform the DVLA that the insurance company is now the legal owner.
You must do this by completing the ‘Selling, transferring or part exchanging this vehicle to a motor trader’ section of the vehicle registration (V5C) document (also known as a logbook) and sending it to the DVLA.
If you do this, you must give the remaining part of the logbook to the insurance company.
Alternatively, you can tell the DVLA online.
What is GAP insurance?
If you are concerned about losing money on your finance car, either through car theft or negative equity, you could take out Guaranteed Asset Protection (GAP) insurance.
GAP insurance covers the difference between what an insurer will pay you for your car and what you owe on the finance. It will also cover you if your car is stolen or written off in an accident.
GAP insurance is optional, so whether you take it out will depend on your circumstances. It’s important to note that you can’t take out a GAP insurance policy and apply it to an accident or theft retrospectively (after the event); you’ll need to have the cover before your car is stolen for it to be valid.
Will you get a road tax refund if your car is stolen?
If your stolen car is not returned within a week of being reported to the police, you can request a refund on your road tax (also known as vehicle excise duty or VED).
You claim a VED refund by filling in a V33 form. If you pay annually, you will get a cheque refunding any full months left on your vehicle tax.
Refunds are calculated from the date you contact the DVLA, and cheques are sent to the registered keeper listed on the vehicle log book.
It’s important to note that if you pay your road tax monthly, you cannot claim a refund, but you can inform the DVLA, and they will cancel the direct debit.
You will not receive a refund for:
- Credit card fees
- 5% surcharges on some direct debit payments
- 10% surcharges on single 6-month payments
For more information, see the DVLA’s full guidance on vehicle tax refunds if your car is stolen.
What happens if your car has a private registration?
If you want to keep your private registration, it’s best to apply to the DVLA as soon as possible after you report your vehicle stolen. You must apply within 2 years and 6 months from the date of the theft.
Applying to keep your personalised registration means it will stay in your name and ensures you can apply it to another vehicle later.
You can only get your private registration back if the following applies:
- You have told the police about the theft
- The vehicle had a valid MOT certificate and up-to-date tax when it was stolen
Applying to keep your registration number costs £80. You will also need to provide the following information to the DVLA:
- A completed V317 ‘transfer or retain a vehicle registration number‘ form
- The vehicle’s V5C log book or the green ‘new keeper slip’ with a completed V62 ‘application for a vehicle registration certificate V5C‘
For more information, see the DVLA’s full guidance on what to do if your car with a personalised plate has been stolen.
How can I help to prevent my car from being stolen?
Taking the following safety precautions can help to reduce the chances of your car being stolen:
- Ensure your car is locked whenever it’s not in use.
- Park in well-lit, busy areas or car parks with CCTV.
- Don’t leave your valuables on show – lock them away in the glove compartment or boot, or preferably keep them out of your car.
- If you have a car with keyless entry, keep the key in a signal-blocking pouch.
- Consider fitting Thatcham-approved alarm systems and trackers.
- If you’re selling your car, go with potential buyers on any test drives.
- Use deterrents, like steering wheel locks and alarms.
- Don’t leave your car running unattended.
For a better road ahead
Moneybarn is a member of the Finance and Leasing Association, the official trade organisation of the motor finance industry. The FLA promotes best practice in the motor finance industry for lending and leasing to consumers and businesses.
Moneybarn is the trading style of Moneybarn No. 1 Limited, a company registered in England and Wales with company number 04496573, and Moneybarn Limited, a company registered in England and Wales with company number 02766324. The registered address for these companies is: Athena House, Bedford Road, Petersfield, Hampshire, GU32 3LJ.
Moneybarn’s VAT registration number is 180 5559 52.
Moneybarn Limited is authorised and regulated by the Financial Conduct Authority (Financial Services reference No. 702781)
Moneybarn No. 1 Limited is authorised and regulated by the Financial Conduct Authority (Financial Services reference No. 702780)
