Buying or leasing a car for my parents

[c82wright]

I would like to buy (financed) or lease a car for my parents. They've pretty much drained their savings over the past few years. Their current car is on it's last legs.  What are my options to buy a car for them without being a co-signer for them? We live in different states. So how would registration/taxes/insurance work? Should I buy the car in their state? I have alot of questions, but I'm not sure how to word them.

Thanks

[Dustink]

Not to question your choice right off the bat, but will this cause you any financial distress?

Purchase the vehicle as if it were your own. Add them to your insurance. They don't need to be on the registration or anything. Doing it all in your state is fine. The only issue might be if they get pulled over, but I am assuming your parents wouldn't be presumed car thiefs. Even put a note in the car saying you are allowing them to drive your vehicle and call XXX-XXX-XXXX if needed. The fact that they will be on the insurance will essentially erase all concerns. 

[Mikey41]

I'd advise you to buy a car because you can finance a good certified used or preowned car with easy payments and don't have to worry about resigning a lease deal. Your only option is to give or loan them a downpayment so they can get the car financed. 

Once the car is finance; register it in their name and you can add it onto your insurance; just list your parents as the driver and their addresses in whichever state E.g.  I am 19 an have my own auto insurance policy while my mom has hers with another company. Her car is registered in her name; I added her to my policy and gave them the necessary information.  Basically your name shouldnt appear on anything but the INSURANCE.

People will tell you that you cant insure a car that's not registered in your name but you definitely can.

[Dustink]

I would do it differently. I'd keep it register in my name as long as I was the financially responsible party. After it is paid off, by all means sign the title over and let them register it.

[StartingOver10]

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@Dustink wrote:

I would do it differently. I'd keep it register in my name as long as I was the financially responsible party. After it is paid off, by all means sign the title over and let them register it.

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^^^Exactly.  If you are on the hook for the payments, keep it in your name with insurance until it is paid off and then you can transfer the car title to your parents.

[Creditaddict]

The other poster is right... They get insurance and just add your name as "named insured" as long as you have a loan on the car.
Now in some states like California it's all different and annoying but either way let them get insurance and depending on state you be joint on policy or just named insured... Either way you should be able to be covered without paying for it in premium since they are primary drivers... This way then your car and insurance in your state won't be complicated and more expensive.
I'd register and insure in state your parents are in.... Probably cheaper for them.