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Message
Possibly MoneyTalk related - temp assuming a car note/ins from a relative, thoughts?
Posted on 8/5/21 at 6:59 pm
Posted on 8/5/21 at 6:59 pm
We have a relative who will be living way out of the area for about a year and won't need her vehicle. We've been considering a new car for my wife (pics on hotlatinasifyoucanhandlethecray.com) who will be going back in the office daily in September.
Relative approached us about taking over her car note for the duration and using it rather than buying new now. She knows it's gonna be used for commute and recreational use, so it's gonna get a decent amount of mileage on it. When the relative returns, she'll take it back and take over the payments again.
I'm leary of getting in transactions like this with family... but it seems it may help her and I don't have to car shop in a sellers market.
Tell me how bad of an idea this is... :0
Relative approached us about taking over her car note for the duration and using it rather than buying new now. She knows it's gonna be used for commute and recreational use, so it's gonna get a decent amount of mileage on it. When the relative returns, she'll take it back and take over the payments again.
I'm leary of getting in transactions like this with family... but it seems it may help her and I don't have to car shop in a sellers market.
Tell me how bad of an idea this is... :0
15
Posted on 8/5/21 at 7:02 pm to Meauxjeaux
Just wreck it and let us know how it turns out
Posted on 8/5/21 at 7:02 pm to Meauxjeaux
you are basically leasing the car for a year, is that something you are interested in?
Posted on 8/5/21 at 7:02 pm to Meauxjeaux
I should add, relative doesn't want to sell the car and then buy another when she's back home.
She can't afford to pay the note and her new expenses for the next year, so for her it's A) sell it or B) 'rent' it to us.
She can't afford to pay the note and her new expenses for the next year, so for her it's A) sell it or B) 'rent' it to us.
Posted on 8/5/21 at 7:04 pm to TigerintheNO
quote:
you are basically leasing the car for a year, is that something you are interested in?
Would be perfectly fine if there's not any other downsides. It's a nice car especially for a commute. Nothing special, but is only 2-3 years old, low mileage and a good ride.
Posted on 8/5/21 at 7:06 pm to Meauxjeaux
Add the wife as an additional insured on the policy. It will probably end badly but on a positive note it will be one less relative in your life 
Posted on 8/5/21 at 7:07 pm to Meauxjeaux
Your relative will help you spread some third party risk. That's nice of her.
Posted on 8/5/21 at 7:08 pm to Meauxjeaux
quote:
When the relative returns, she'll take it back and take over the payments again.
That’s gonna be your issue.
Posted on 8/5/21 at 7:14 pm to Meauxjeaux
You can't get insurance on it, because you don't own it. Can you drive it with her permission, yes. If there is an accident, they will ask her if your wife had permission. That's it. If you did/do this, pay her the note and insurance on the side and let her continue to make payments from her account.
This post was edited on 8/5/21 at 7:16 pm
Posted on 8/5/21 at 7:18 pm to Meauxjeaux
I say go for it just because I wanna see how this bites you in the arse: there are just so many ways.
Posted on 8/5/21 at 7:21 pm to Lynyrd
quote:
You can't get insurance on it, because you don't own it. Can you drive it with her permission, yes. If there is an accident, they will ask her if your wife had permission. That's it. If you did/do this, pay her the note and insurance on the side and let her continue to make payments from her account.
Keep in mind that your auto policies on your other vehicles likely won’t cover a non-owned vehicle if it’s been in your possession after a certain amount of days. If you or your wife cause an accident, the only liability coverage you’ll have is your relative’s policy unless you call your own insurer and see if they can cover the vehicle since you’ll be using it for a year.
Posted on 8/5/21 at 7:21 pm to Lynyrd
quote:
You can't get insurance on it, because you don't own it. Can you drive it with her permission, yes. If there is an accident, they will ask her if your wife had permission. That's it. If you did/do this, pay her the note and insurance on the side and let her continue to make payments from her account.
She would add us as additional insured.
For the downsides I figure:
Downside ----------- Mitigation/Remedy
Wreck ----------- Insurance repairs/totals
No-pay note/ins ---------------- We can pay from her acct online
Major mechanical ---------------- exposed here, we'd pay it
Regular maintenance --------------- we will pay as if it was ours
Tires/common parts ---------------- we would pay
Doesn't take it back on return --------------- we quit paying, nothing hurt?
Posted on 8/5/21 at 7:30 pm to Meauxjeaux
Absolutely not
This post was edited on 8/5/21 at 7:31 pm
Posted on 8/5/21 at 7:38 pm to Meauxjeaux
It's up to you. It's a risk I wouldn't take on. Insurance follows the vehicle in Louisiana, not the driver. She will be on the hook, well her insurance, if y'all damage the car. Like the poster above you stated, your insurance likely won't help. To be honest, they can't. They have no vested interest in that car.
Eta: If you do it, know you are subject to the deductibles she has. They could be higher than yours. Also her limits of liability. If someone is injured and she has minimum coverage, it could get unpleasant.
Eta: If you do it, know you are subject to the deductibles she has. They could be higher than yours. Also her limits of liability. If someone is injured and she has minimum coverage, it could get unpleasant.
This post was edited on 8/5/21 at 7:42 pm
Posted on 8/5/21 at 7:44 pm to Meauxjeaux
Why doesn't she just sell the car. Probably not a better time if you don't need to get into another. Or just sell it to OP for the payoff.
Posted on 8/5/21 at 7:45 pm to Meauxjeaux
frick paying her interest for her. “Rent” it from her for less than the note; that way she still has to pay something every month to keep her “invested”. Are you also paying her insurance premiums for the year? Inspection? Taxes?
You already know this is a bad deal. Why else would you come here and ask?
You already know this is a bad deal. Why else would you come here and ask?
Posted on 8/5/21 at 7:57 pm to Meauxjeaux
quote:
We have a relative who will be living way out of the area for about a year and won't need her vehicle.
What’s she going to jail for?
Posted on 8/5/21 at 8:03 pm to Lynyrd
quote:
Eta: If you do it, know you are subject to the deductibles she has. They could be higher than yours. Also her limits of liability. If someone is injured and she has minimum coverage, it could get unpleasant.
Good info...
I think we're just gonna tell her we'll buy it and sell it back to her on return.
It's not a 'normal' transaction by any means - she's family and there's a part of helping her out in this.
Figure we'll buy it for the notes left on it and sell it back to her when she returns for the notes left on it.
The unknowns of the insurance and liability issues makes the 'renting' idea bad. Thanks all for the advice.
Posted on 8/5/21 at 8:04 pm to CaptainsWafer
quote:
What’s she going to jail for?
Jail, rehab, new job, military, sex change operation, witness protection, hell who knows.
ETA: for the curious, she has a daughter with a new baby coming in a few months. Wants to take a year +/- to help out (new mom and dad both work, it's their first kid). I think the COVID unemployment makes these scenarios really attractive... just my opinion.
This post was edited on 8/5/21 at 8:07 pm
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