Quick Answer: Is It Illegal To Finance A Car For Someone Else?

Quick Answer: Is It Illegal To Finance A Car For Someone Else?

It can be difficult to get insurance if someone else finances a car for you for a couple of reasons.

One is that you do not have insurable interest.

Since the other party is the one with the car in their name (and thus the registered owner) than you do not have insurable interest in the vehicle.

Can I finance a vehicle for someone else?

This is because the person who is paying for the car has the financial interest. This means they should hold the insurance policy. So yes, you can lease a car or get car finance on someone else’s behalf. However, the insurance policy will have to be in your name.

Is it illegal to buy someone else a car?

Laws differ state by state that may make the straw purchase of a vehicle illegal. If you purchase a vehicle for someone and they’re not on the loan, you’re the only one ultimately responsible for paying back the loan. You will not gain anything by having someone else purchase a vehicle for you.

Photo in the article by “President of Russia” http://en.kremlin.ru/events/president/news/17118