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Old 06-27-2012, 05:12 AM
 
706 posts, read 1,720,792 times
Reputation: 873

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Quote:
Originally Posted by southernnaturelover View Post
If the car is in your name and your son or DIL wrecks it, your going to have to lie and say you let them "borrow" it. Your son cannot get insurance on a car thats in someone elses name (at least not where I live).

I think your better off co-signing and letting your son build his credit, so next time he can buy one on his own without you.
I believe any car owner/driver/insurer can name any alternate drivers they want, on the insurance, and that driver has unrestricted authority to drive the vehicle. But the insurance rates will be affected by the rating of that driver, and the insurance company has the right to refuse any driver according to record. So any person can be insured in any car in any person's name, subject to insurance company's approval, which is denied only in unusual circumstances.

For example, if my wife and I have a car, we can put her 25-year old daughter or my 70 year old mother on the insurance as a covered driver.

The liability policy (I think) stipulates (by state law) that any driver is covered, as long as that driver had permission to be driving the vehicle. This can even be a complete stranger, such as a prospective buyer. The reason for that is to preserve the theory that the general public is protected against the actions of motorists, even if negligent. That may not apply to collision, but only to liability. However, the insurer can charge you with fraudulent use if you routinely, by design, "loan" the car to an unlisted driver with the intent of avoiding premium uprating. (Fraud is a crime of intent.)

The owner of a car does not need to be a principal driver, or even a listed driver. A blind person who never drives can own a car, for his household use and his own transportation by other drivers including an employed chauffeur or use by a housekeeper. Said blind person can even finance the purchase of such a car, according to his own credit rating. A blind non-driver can even rent a car, provided that he show up at the rental desk with the intended driver. Anything else would be a violation of the Americans with Disabilities Act.

Last edited by CowanStern; 06-27-2012 at 05:32 AM..
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Old 06-27-2012, 06:15 AM
 
Location: NW San Antonio
2,896 posts, read 8,348,763 times
Reputation: 3089
You can buy the car in your name, title means nothing. As long as your son and any other regular driver are on the insurance policy thats on the car, then no problem. Also, GAP insurance, on a USED Car? I don't know the dealership you're dealing with, but these people sound like cons. I'd go shopping elsewhere. Its none of their business as to who what when or where. As long as they get paid for the car, they are out of the picture. You are pre approved for 4%, go to a reputable dealer and get a car without all the con man scenarios. I've bought several cars, in my name, and let my children drive them until they pay me for them. My requirement, and the insurance company, their name is on the policy as a driver.
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Old 06-27-2012, 06:50 AM
 
4,911 posts, read 5,520,426 times
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If you're buying the vehicle and putting all the paperwork in your name, all you would have to do is add your son to the insurance policy in case he gets into an accident. The dealer or bank doesnt have to know that you're doing it for your son.
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Old 06-27-2012, 07:58 AM
 
Location: Dallas, TX
4,464 posts, read 9,630,498 times
Reputation: 2819
Quote:
Originally Posted by sinsativ View Post
You can buy the car in your name, title means nothing. As long as your son and any other regular driver are on the insurance policy thats on the car, then no problem. Also, GAP insurance, on a USED Car? I don't know the dealership you're dealing with, but these people sound like cons. I'd go shopping elsewhere. Its none of their business as to who what when or where. As long as they get paid for the car, they are out of the picture. You are pre approved for 4%, go to a reputable dealer and get a car without all the con man scenarios. I've bought several cars, in my name, and let my children drive them until they pay me for them. My requirement, and the insurance company, their name is on the policy as a driver.
Actually it is, considering the bank owns the majority of the car, not you, the buyer. One of the things that nearly every bank will stipulate is that the primary driver on the vehicle has to be on the application.

And why is GAP insurance crazy on a used car? You can just as easily be upside down on a used car as a new one.

As an FYI, Carmax has the exact same policy and they will not sell you a car is you've told them it's not for you, unless it's for a child under the age of 18, if they're over 18, and will be the primary driver, they have to be on the paperwork.

Quote:
Originally Posted by deevel79 View Post
If you're buying the vehicle and putting all the paperwork in your name, all you would have to do is add your son to the insurance policy in case he gets into an accident. The dealer or bank doesnt have to know that you're doing it for your son.
Which is obviously what a lot of people do, knowing how the rules are, be aware though, that one would be running some risks doing that, as you sign paperwork stating you're not taking part in a straw purchase.
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Old 06-27-2012, 08:31 AM
 
4,911 posts, read 5,520,426 times
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Quote:
Originally Posted by TheViking85 View Post
Actually it is, considering the bank owns the majority of the car, not you, the buyer. One of the things that nearly every bank will stipulate is that the primary driver on the vehicle has to be on the application.

And why is GAP insurance crazy on a used car? You can just as easily be upside down on a used car as a new one.

As an FYI, Carmax has the exact same policy and they will not sell you a car is you've told them it's not for you, unless it's for a child under the age of 18, if they're over 18, and will be the primary driver, they have to be on the paperwork.



Which is obviously what a lot of people do, knowing how the rules are, be aware though, that one would be running some risks doing that, as you sign paperwork stating you're not taking part in a straw purchase.
There's no way of proving this though. As long as the son is listed as a driver on the insurance policy, what's to say that he's not just "borrowing" the vehicle from his father?
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Old 06-27-2012, 08:45 AM
 
Location: NW San Antonio
2,896 posts, read 8,348,763 times
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Quote:
Originally Posted by TheViking85 View Post
Actually it is, considering the bank owns the majority of the car, not you, the buyer. One of the things that nearly every bank will stipulate is that the primary driver on the vehicle has to be on the application.

And why is GAP insurance crazy on a used car? You can just as easily be upside down on a used car as a new one.

As an FYI, Carmax has the exact same policy and they will not sell you a car is you've told them it's not for you, unless it's for a child under the age of 18, if they're over 18, and will be the primary driver, they have to be on the paperwork.



Which is obviously what a lot of people do, knowing how the rules are, be aware though, that one would be running some risks doing that, as you sign paperwork stating you're not taking part in a straw purchase.
Just bought two cars, brand new 2011 in Jan. 12, actually traded in my friends Escape as downpayment, as long as no marriage, no need to be on app, or title, only insurance policy. Straw Purchase is a term for housing, mortgage. Since most cars are no more than 5 or 6 years, you take responsibility for the car. The second car, I bought, no questions either. I even had someone else drive me to the lot, same lot, I bought the brand new car from, they didn't qquestion whether it was for someone else.
And as far as GAP, yes, you can be upside down in a used car, but if you are, you have made a poor deal, depreciation after being brand new and titled once normally drops the value below what the insurance will pay in the need for total replacement. Just BS that dealerships want you to buy.
Anybody that buys GAP insurance is getting screwed. If you are going to pay for regular insurance to cover your car, why would you go out and buy a second policy to cover the difference that your first policy doesn't cover? Wouldn't it seem more feasible to buy enough insurance to cover the car in the first place? Poor negotiating and lack of knowledge about scams. Say all you want to defend secondary insurance, but its a scam, and anyone that falls for it is a sucker.
The bank wants to get payment, the only one concerned is the insurance company. I've bought 7 cars in the last 12 months, all in Texas, and explained to the people I was buying from, never once did I get questioned as to who the main driver would be by the finance company.
Oh, and I shopped around with 10 different lenders for the best rates, filled out 10 apps. Never once did they ask anything about anything except my finances.
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Old 06-27-2012, 08:54 AM
 
7,099 posts, read 23,885,607 times
Reputation: 7248
A lot of this might depend on the source of the financing. What a BANK wants, and what a Auto Financing company may want, might be a lot different.

Here is the thing...If the son wrecks the car, and the loan and insurance is in your name, it could mess up your credit rating if the accident included things like property damage or medical costs.


Buy the car. Pay cash and then give it to your son. Transfer the title to him. That's a private transation. He should be able to get insurance in his own name. If you want him to reimburse you for the cost of the car afterwards, that is between just the two of you. The rules of the bank or the finance company have no say so in the matter.
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Old 06-27-2012, 09:01 AM
 
Location: NW San Antonio
2,896 posts, read 8,348,763 times
Reputation: 3089
Quote:
Originally Posted by Padgett2 View Post
A
Here is the thing...If the son wrecks the car, and the loan and insurance is in your name, it could mess up your credit rating if the accident included things like property damage or medical costs.
Nobody suggested he not be put on the insurance policy. The question was about the dealership putting his son's name on the other info. As far as financial responsibility, yes, if the son goes out, wrecks the car, causes a lot of damage, it may exceed the insurance policy and if Daddy has money, the victim could go to the legal owner of the vehicle and seek recompence. Thats the downfall but, even if both names were on the title, they could sue both of them, having the son's name on title or application doesn't change anything, except if they want to run the credit record and since the son has worse credit than Dad, they charge higher rates, than if it were Dad alone.
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Old 06-27-2012, 09:06 AM
 
Location: On The Road Full Time RVing
2,342 posts, read 2,785,721 times
Reputation: 2214
Quote:
Originally Posted by southernnaturelover View Post
I think your better off co-signing and letting your son build his credit, so next time he can buy one on his own without you.
That will not work ! ! !

If you co-sign on a note ( loan ) you are the only one who will get the credit
when it is paid off, NOT the Son and If he is late on any payments,
it will hurt the co-signers credit, because the co-signer is
the only one responsible of paying it off ! ! !
.
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Old 06-27-2012, 09:12 AM
 
Location: On The Road Full Time RVing
2,342 posts, read 2,785,721 times
Reputation: 2214
Quote:
Originally Posted by Rathagos View Post
Recently, his radiator blew on his very old Nissan and he was going to a local dealership to try to buy a previously-owned vehicle.
It would be a lot cheaper and easier to put another radiator in the car.
.
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