Is there a workable solution here? (Teenager and car insurance) (1 Viewer)

[Captain Cranks]

My wife's daughter, who lives with us full-time, recently turned 16.  Her father wants to 'buy' her a car and have it put on our insurance policy.  OK..no problem.  However, now we find out he's actually going to put a down payment on the car and wants my wife to put her name on the loan.  I said, 'no dice'.  Is there even a way to legitimately accomplish the following things at the same time?:

1.  Daughter gets car.

2.  Insurance for car and associated address is on us.

3.  Name on loan and car title is on ex.  

Ultimately, I think my question is a) can my wife's name be on the title without also being on the loan or, if not, b) will the insurance company insure the car if her name isn't on the title?

 

[Angry Beavers]

Ask your insurance agent

My 17 year old has the insurance through his mom but the car is in my name.. not asking how they pulled that off.. 

 

[stbugs]

My wife's daughter, who lives with us full-time, recently turned 16.  Her father wants to 'buy' her a car and have it put on our insurance policy.  OK..no problem.  However, now we find out he's actually going to put a down payment on the car and wants my wife to put her name on the loan.  I said, 'no dice'.  Is there even a way to legitimately accomplish the following things at the same time?:

1.  Daughter gets car.

2.  Insurance for car and associated address is on us.

3.  Name on loan and car title is on ex.  

Ultimately, I think my question is a) can my wife's name be on the title without also being on the loan or, if not, b) will the insurance company insure the car if her name isn't on the title?

LOL, put a down payment on a car that you will pay for and cover the insurance as well? Her dad wants to be the hero and not pay anything. Most people don't even put anything down on car loans. It's not a house. I'd tell him to stuff it. Does your daughter even need the car or can you just put her on your policy as a third driver. I know my son was that way for a bit before he got a car from his grandfather before he passed away. It was a lot cheaper when he didn't have a car (two cars for me and my wife and three drivers).

 

[Johnny Rock]

Take the down payment from him in cash and buy her a used car.

 

[[scooter]]

My wife's daughter, who lives with us full-time, recently turned 16.  Her father wants to 'buy' her a car and have it put on our insurance policy.  OK..no problem.  However, now we find out he's actually going to put a down payment on the car and wants my wife to put her name on the loan.  I said, 'no dice'.  Is there even a way to legitimately accomplish the following things at the same time?:

1.  Daughter gets car.

2.  Insurance for car and associated address is on us.

3.  Name on loan and car title is on ex.  

Ultimately, I think my question is a) can my wife's name be on the title without also being on the loan or, if not, b) will the insurance company insure the car if her name isn't on the title?

This is such a terrible idea all the way around. You and your wife are risking your credit so that Weekend Dad can teach everyone a lesson about bad money management.

 

[Captain Cranks]

This is such a terrible idea all the way around. You and your wife are risking your credit so that Weekend Dad can teach everyone a lesson about bad money management.

Yeah...that's not happening.  He actually had the nerve to tell his daughter that it's not fair that he'd have to pay for the down payment, errrrrrr, car AND the liability of the car title would still be in his name.  Never mind the fact that the insurance is on us and it's not even our idea for her to get a car.  Dude is a toolbox.  

 

[belljr]

What we did - ymmv  This also depends on the relationship between the exes

My steps son Dad bought him a car.   He put it on his insurance.

We insured my son as a driver on one of our cars.

He just basically drove "his" car and parked at our house.   Not sure how legal it was but it worked out 

 

[Da Guru]

If he is going to but her a car then buy her a car.  Paying the down payment is just like paying 3-4 payments out of 48.

When my daughter got her first car I put it in my moms name who was in her late 60s at the time. Paid hardly anything for insurance.

 

[Juxtatarot]

Ultimately, I think my question is a) can my wife's name be on the title without also being on the loan 

Most lenders (and thus finance guys at dealerships) will require the names on the title and the loan to be the same.  Some lenders will allow exceptions to this with additional paperwork signed but that's not common.  This might vary a little by state/region, I'm not totally sure. I'd suggest calling a local bank or credit union and asking what they'd allow.

As a lender, I'd do the loan (assuming credit, income, etc. were OK) if it were set up this way:  Ex on loan only.  Title in name of ex and your wife.  Your wife would have to sign a form acknowledging collateral could be repossessed in the event of default.  With this arrangement, insurance shouldn't be an issue since your wife is an owner of the car.