Buying a Car for your college graduate
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Anonymous
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I've been mulling the idea of buying my son a car when he graduates college, but I'd have to finance it for 3 years at least. Nothing huge, but I'd like to buy new, like a Civic or Corolla. Can the insurance be solely in his name if I'm the one financing the car?
In the alternative, has anyone else bought their adult kid a car? And if so, how did you set it all up? |
Anonymous
| Generally, insurance companies don't care who is paying for the car. He may be able to be a driver on your policy (even if he doesn't live with you) or he can get his own insurance. |
Anonymous
| Make him buy it in his name - any you make the payments. It will help set up his credit record. |
Anonymous
Good idea. |
Anonymous
Right, and make she he gets his own insurance so if he does something stupid you won't get sued and lose your house. |
Anonymous
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OP here. Yes, he's got his own insurance policy and our extra 3rd car (old) is titled in his name. He has since he turned 18.
He's a good driver, but when I was 18 I hit someone else, and they sued my parents. I was devastated. It was solely my fault and I wanted to take the responsibility. But the courts didn't see it that way. |
Anonymous
| YOu put him thru college, let him buy his own. Put that money into some sort of investment account instead so he can use it when he's old. |
Anonymous
| Did you pay (or are you paying) his way to college? If so, enough is enough. You don't need to buy him a car. I'd maybe think differently if you could do it without financing, but at this point it's time to think about your own future. |
Anonymous
+1 If you don't have the money to pay for it without financing, you are not wealthy enough to buy him a car as a gift. Your gift to your son will be your ability to support yourself in retirement. If you become well to do in the future, you can help out any grandchildren or you can insure your son's retirement security (which is looking like it could be an issue for the millennials). A car is not the kind of asset you should be thinking about for your son's long term well being. Does he need a car to get to work/does he have a job yet? He might get a job where he can use public transit and the car would just sit there anyway. Wait to see how you can best support him with his future plans after college. |
Anonymous
| OP here. My future is fine. Retirement money, emergency savings, and real estate assets are not being touched. This would be a gift out of short-term savings. I don't want to pull out $20,000. I feel more comfortable with $10,000 and financing the rest. |
Anonymous
| Do the car shopping together. You'll want input but he'll have preferences too. |
Anonymous
| Mistake . . . |
Anonymous
Not for my family it isn't. |
Anonymous
| Let him buy the car with you providing the money. If doesnt have a job, be a cosigner for him. New college grads get incentives that you would not be eligible for if you plan to finance part of the amount. |
Anonymous
Wow, how sad for you that your relationship with your kids ( if you have them) isn't strong enough for you to trust them. |