Susan in TN Posted June 17, 2016 Share Posted June 17, 2016 Dh and I are considering selling our car to our oldest, who will be 21 in a couple weeks. I am wondering what issues we should consider regarding selling it to him outright (bill of sale, transfer of title) or keeping the title in our name and letting him use it on a permanent basis. He would be taking it with him to the university in the fall, though it is in our state of residence and only an hour away. Quote Link to comment Share on other sites More sharing options...
gardenmom5 Posted June 17, 2016 Share Posted June 17, 2016 dh kept the kids cars in our name because it lowered the insurance. 4 Quote Link to comment Share on other sites More sharing options...
lllll Posted June 17, 2016 Share Posted June 17, 2016 (edited) nm Edited November 30, 2016 by cathey 1 Quote Link to comment Share on other sites More sharing options...
midori Posted June 17, 2016 Share Posted June 17, 2016 21? Is this his senior year? Congratulations. Whose insurance will it be under, and who will be responsible for the annual registration/inspection/whatever government paperwork is required in your area? If it's under your insurance, I'd let him use it, and then sell or gift to him, complete with a title transfer, after he graduates and is moving out and is properly responsible for everything. Is he able to afford gas? Will y'all be subsidizing gas? I didn't get a car until the spring semester of my senior year. Even then, I had no clue for how expensive a vehicle was, and it was way too much, even with the little bit of money I earned through work-study. I remember scraping coins out of the glove box, because the pump wouldn't take my debit card, because I was down to my last $15, even though I only wanted to put $5 in... It was an eye-opener. I was jealous of the friends who had cars their freshman year, but once I had the car, I realized that there was a lot of expense. I think I'll take a similar approach with my kids when the time comes. 1 Quote Link to comment Share on other sites More sharing options...
TechWife Posted June 17, 2016 Share Posted June 17, 2016 The owner of the car must be a policyholder on the auto insurance, so he will need to get his own insurance. 1 Quote Link to comment Share on other sites More sharing options...
zoobie Posted June 17, 2016 Share Posted June 17, 2016 Liability for expenses (tags, registration, any kind of parking tickets or automated driving violations, insurance, etc.) and accidents. If he owns it, it's all on him. If you own it, it's all on you. Legally speaking. Practically speaking, you can help him pay or he could reimburse you. 1 Quote Link to comment Share on other sites More sharing options...
Lawana Posted June 17, 2016 Share Posted June 17, 2016 The owner of the car must be a policyholder on the auto insurance, so he will need to get his own insurance.This may not be true everywhere? Dd drives a car that is currently in my name, though we do intend to transfer title soon, but she is the policy holder on the insurance. Shopping for insurance, we were clear about the situation. 1 Quote Link to comment Share on other sites More sharing options...
Amy in NH Posted June 17, 2016 Share Posted June 17, 2016 My 19yo has a car she owns which is registered in her name, and we are the policyholders since she lives in our home. The car was added to our policy. Every licensed driver living in the house must be insured on all three vehicles. 2 Quote Link to comment Share on other sites More sharing options...
AK_Mom4 Posted June 17, 2016 Share Posted June 17, 2016 DS24 and DD22 both own cars. DS24 bought his when he graduated from college. DD22 bought hers before her senior year in college as she needed a car to do student teaching - we helped her with the purchase, but only her name is on the title. In both cases, they own the cars and buy their own insurance. DS20 drives a car we own and he is listed as a driver on our insurance policy. This makes sense because he is living here at home and occasionally the car is driven by one of us or he takes my car. If he purchased the car from us, I would expect him to also be buying his own insurance, but we have not needed to do that yet. 1 Quote Link to comment Share on other sites More sharing options...
Susan in TN Posted June 17, 2016 Author Share Posted June 17, 2016 What's the goal in selling it to him? . Well, Dh thinks it would be a good baby step into "adult independence/responsibility" for ds. He is a fairly responsible person in general. This fall (he'll be a junior in college) he is renting an apartment instead of living on campus, and we are fine with that and feel good about his roommates. After reading these posts, I wonder if the overall expense (insurance especially) would be worth it. He does not work a "regular" job during the school year (he works part time for one of his professors) and we may pitch in a little money for gas if he needs it. Dh said he will talk to our insurance agent and get his recommendations. 1 Quote Link to comment Share on other sites More sharing options...
kroe1 Posted June 17, 2016 Share Posted June 17, 2016 This may not be true everywhere? Dd drives a car that is currently in my name, though we do intend to transfer title soon, but she is the policy holder on the insurance. Shopping for insurance, we were clear about the situation. If the actual owner of the car is not named on the policy, the owner may find he is liable for an accident and uninsured. 1 Quote Link to comment Share on other sites More sharing options...
4arrows Posted June 19, 2016 Share Posted June 19, 2016 Our almost 21 yo dd bought a car last year. The title is in her name, but she is on our insurance since she still lives with us. We will be selling our old van to the 19 yo this summer. I think that as along as the car being titled to your ds does not mean he has to get his own insurance policy ($$$), then I would go that route. I'd definitely talk to my insurance agent, as that requirement may vary by company. Quote Link to comment Share on other sites More sharing options...
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