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ill take the car without any presentation and make it a convertible....
Got a friend back in town after graduating from college. I've agreed to buy them a car with eventual repayment down the line. Few questions:
1. Anyone have a used car dealership suggestion? I know that's bordering on an oxymoron but I don't really feel like dealing with buying a car off of an individual. Better deals available but too much hassle. I'm looking for something 2006 or newer, 40K miles or less and ~$8K or less. Any recommended dealerships for that range of car? I'd be paying in cash so the financing aspect doesn't apply. I would consider new but I'm not 100% confident that I'll get repaid so I don't want to be out much more than $8K.
2. Any brand/make/model/year recommendations? The main focus would be something that is somewhat reliable since if it dies, the chances of repayment probably die with it.
3. Does it make more sense to keep the le in my name until repayment or would there be extra liability involved in that scenario? If there is any extra liability that could arise from owning the le on a car I don't have in my possession, I'd rather just sign over the le from the beginning.
Oh and if anyone has been car shopping in this economy, how desperate are the dealerships? Can I expect to be able to play extreme hardball?
Thanks in advance.
ill take the car without any presentation and make it a convertible....
Yes, you can be held liable for things that happen in "your" car. I was in a car accident, not my fault, the police said it wasn't my fault, the other 2 guys' (yes 2 trucks hit me at 80 MPH) insurance said it wasn't my fault, and paid me. Then 1 day before the statute of limitations (2 years) they served myself and my father. I was served for reckless driving, and he was served for allowing a reckless driver to drive his car. Needless to say it was laughed out of court, but the point remains, he was served too. Also, if you are going to put it in his name, don't sign it over. Purchase it in his name, otherwise he will have to pay the full tax to have it changed into his name. Sale price doesn't matter (like if you "sold" it to him for $1), they look only at fair market value, so unless you want to pay taxes on it twice, you have got to purchase it in his name. Lastly you can get a brand new Kia Rio for 7888 right now at world car, so that really fits all of your criteria and its new. Just a thought.
Never tell the salesperson you're paying cash.
I would leave the le in your name until you're paid in full.
Make sure that the person you are gifting it to has and keeps current insurance under their name.
I'm seeing good prices on single cab v-6 Dodge trucks but that might fall just above your price range.
I've dealt with 2 used car dealerships since my daughter started driving. I was very happy with Northpark Subaru Used car lot. We got a great deal on a 2008 Fusion w/10K miles. We offered cash and ended up saving a lot. I detailed it in another thread where I gave B2B props for his negotiating help. They had it listed for 16,500 + TTL & I got it for 15,000 walk out the door total price. They pulled all the"we can't do that" then when we started to walk, they caved.
Good luck.
Oh Yeah, we bought it right after Thanksgiving shortly after the auto companies went public.
However if there is some kind of falling out and he never gets paid in full their is no proof that the vehicle is his unless he has it led in his name.
You're right about the taxes but a vehicle thats sold for 8k now might not be worth much 2-3 years down the road when its re- led.
The couple of hundred dollar it would cost to re- le is well worth the peace of mind that what you just purchased won't be taken from you before full payment is received.
I realize that he needs to protect himself from not getting paid, but it seems like he is not that concerned about that (wish I had 8k to throw around). Also, you are right about the "a couple hundred dollars is worth the peace of mind," but say he goes out and gets drunk and crashes into some family on their way home from dinner. That 8k is going to look very small when compared to the liability that he will have in that accident. If this is all a problem, purchase the car in the guy's name and write some kind of contract that states what happened and what is expected of both parties, that way TIMVP's liability is 0 and he still has some kind of claim to the car.
That's funny!!
Definitely lead them to believe they'll need to secure financing for you and 0 down at that. The banks aren't advancing right now so any salesperson with an ounce of common sense would be working lean deals to get it through financing and avoid a big money down scenario. Then drop cash on them once you get to the application part.
I understand what you're saying but the if the guy has his own policy in his own name it generally doesn't matter who owns the vehicle so long as the primary driver has full coverage. I understand there is potential risk there so he'd have to weigh the risk of the guy not paying him back vs. the risk of the guy being sued and the insurance company failing to fulfill their end of the contract.
You also musn't forget that if some illegal activity goes down that would suck too.
Timvp, I am an insurance agent in town and I can answer questions you might have about liability issues along with trying contact some of the people I know at dealerships if you want. You can just give me a call. I will call my friend at the dealership and see what he has available within your range if anything at all.
There is massive liability issues here. Whom ever has the le to the car has to be listed on the policy as a named insured (edit: not in all cases which I can explain if you would like). If this friend is not living in your home and is not related to you, he does not have to be on the policy technically. It is called permissive use. He will be fully covered driving the car in your name, that is insured in your name. But, you are still liable for any lawsuits. He really should be listed if he is the only one driving, but it is a loop hole of sorts.
For example: A man that we insure, listed his daughter on his policy because he owns the car, although she is the only one who drives it. She got into an accident, killed someone and they sued him for all of his savings, investments and ...
The only way to free yourself of liability issues is to have everything in his name. On the flip side of this, now the car is legally his. So there might be some repayment issues. However, I am no lawyer, but if there was a "verbal agreement" I believe that can be upheld in court. But it would be smart to have him sign something in the form of a contract and do ent the purchase.
Last edited by DPG21920; 04-02-2009 at 04:24 PM.
You can avoid ownership liability issues and still maintain some control over the vehicle by listing yourself as lienholder...require his insurance to notify you of cancellation or non-payment. If he wrecks the car the insurance company pays you instead of him. If he tries to sell the car he has to get a release of lien from you first. The dealership you buy the car from can do all the paperwork for you.
You assume he'd be liable when he really wouldn't be. The insurance company or the legal system would have to completely fail to find the car owner guilty of anything.
I'd rather have a contract with an insurance company that a piece of paper between two buddies.
If you kill someone in my home and you're found guilty then its on you not the home owner. I understand that weirder has happened but the likelihood of someone who didn't commit the crime being held liable is rare and lot more rare than a buddy skipping out on paying.
Like you mentioned above its a reach and it got tossed. That kind of has nothing to stand on. Just like 90% of hand written paper contracts between pals.
Having the vehicle in his name and regularly checking to insure that the vehicle is covered by said driver offers way more protection.
just make sure when you give them the car this cd is in the car
http://mandyarts.com/wedding/music/r...s.500miles.mp3
This is a much better solution. I completely forgot to think of this.
....and its only one box on the application for le that would need to be filled out not something complicated.
Great idea.
Depending on the company, this could be problematic. When I bought my car, for various tax/write-off reasons my grandmother purchased it as a business expense. She wanted to hold le until the car was paid off, but had to also add me and the car to the business insurance policy since several insurance companies turned me down for attempting to insure a car that wasn't in my name.
On the other hand, however, the beater first car that my dad gave me was never in my name, but I was able to easily switch the existing insurance policy into my name with no problems whatsoever.
1. Don't be shy about buying from an individual; an '06 or newer might very well have warranty left, which affords protection to you. That said, dealers should be "dealing" right now; business is slow. I bought several vehicles while I lived in SA; no dealer impressed me more than any other. Twice I've bought off of individuals; got better cars & paid less.
2. Hyundai is a good value; especially those model years onward. They have a reputation that is sub-Japanese; but as of late their quality is right up there = good value. Kia same thing.
3. My wife and I have bought two cars for her parents; both we've kept led in our name. Ultimately, you are liable for what that car does; make dang sure your friend keeps it insured. I pay the insurance on both the vehicles my in-laws drive. Downside of ling it in his name? He trades it off the next day for something nicer, picks up a payment that he can't make; and your good-will was for naught.
2.
CC's plan eliminates these problems.
Plus I can insure it for you!
Good Idea.
Very true. Didn't read that until after I'd posted.
v bookie on when this friendship ends?
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