Car Title in my name but driven by parents?
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Anonymous
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My parents want a 'run-around' car and I'm moving to a new place where I can walk to work in under 20 minutes (or bus it in far less). I was planning to sell the car to CarMax for 15K cash. I got that offer from parents who also say I can drive it 'whenever' and they'll keep the title in my name.
Are there any cons in this scenario?? I know they'll probably put 20,000 miles on it but I don't need the car anymore... |
Anonymous
| Why does the title need to be kept in your name?? |
Anonymous
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Just transfer the title to them. In most states a transfer to a family member is free and no inspection needed.
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Anonymous
| OP here - please explain it to me like you would to your teens. Does having the paid off car title stay in my name - work to my advantage in any scenario? Does it look good on a credit report? Will it help as far as mortgage financing? Or do I just need to completely rid myself of this? |
Anonymous
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Car transfers can be confusing. There's no reason to have the title in your name for credit or anything else. Just transfer it to them, turn in the plates, cancel the insurance, and that's that. You may even be able to avoid the sales tax because of the family relationship-check your dmv.
Btw title is what confers ownership of the car, registration is your state's grant of permission to drive the car on its roads. At least that's how it works in my state, NY. |
Anonymous
Insurance. It will have to be changed to where it is garaged. Do you live in the same metropolitan area? If you live in MD or DC and they are in VA I guess they are trying to NOT pay car tax. That is fraud. Garaged in VA with MD or DC plates. They will be primary drivers and you and occasional driver - all listed on policy. Title in your name means you are responsible for insurance, inspection, etc. The title is our decision not their decision. |
Anonymous
| If what they are trying to pull is not paying car tax, they should know that the nova jurisdictions are super aggressive about going after people for this. |
Anonymous
| If your name is on the title your also exposed to getting in lawsuits in case of an accident. Doesn't matter if they already have insurance or not, EVERYONE gets dragged into it. |
Anonymous
This. This is the most important and only factor you need to worry about. Transferring a title will not effect your credit in any way. Your loan has already been paid and that is what banks care about. |
Anonymous
| Yes, if they get in an accident, you can (will) be sued. Just transfer title. |
Anonymous
| Thank you everyone! Very much appreciated. - OP |
Anonymous
+1 |