Buying A Car For Someone Else To Drive <Mobile>
If you keep the title, you remain the legal owner. You will be responsible for registration renewals and may be liable for certain traffic violations or accidents involving the vehicle. 2. Financing Hurdles
Gifting a car can trigger tax obligations depending on your location: buying a car for someone else to drive
Most lenders require the person taking out the loan to be the registered owner and the primary driver. If you keep the title, you remain the legal owner
Instead of buying it for them, consider acting as a guarantor. This allows the car and loan to stay in the driver's name while you provide the financial backing. 3. Insurance and "Fronting" Insurance is the area where most people make mistakes. Financing Hurdles Gifting a car can trigger tax
Taking out a loan in your name for a car someone else primarily uses is often flagged as an "accommodation deal," which many lenders prohibit.