Re: Should I do this?

Anonymous · ‎12-17-2015

@Anonymous wrote:
This is what is called a straw purchase in the auto finance world, and it is a huge NO-NO. You will be breaching the terms of your agreement as soon as you sign on the dotted line. This should not be encouraged in what is supposed to be a reputable credit forum.

Now, co-signing is a totally different story. Any reason you can't pursue that option? Is his credit THAT bad?

You're correct. It is fraud and if the creditor finds out that you're not the one driving the car they can repossess the vehicle.

Bankrupt2019 · ‎12-17-2015

If the OP signs on the dotted line it doesn't matter who drives the car. He will have to register and insure it in his name and he assumes all liability for the debt and the vehicle. I don't necessarily agree with you that this is fraud. I do However agree that It is a bad idea to ever take out a loan or even co-sign for anyone. Though I may be jaded, I've been burned a few times trying to "help" people.

@Anonymous wrote:
@Anonymous wrote:
This is what is called a straw purchase in the auto finance world, and it is a huge NO-NO. You will be breaching the terms of your agreement as soon as you sign on the dotted line. This should not be encouraged in what is supposed to be a reputable credit forum.

Now, co-signing is a totally different story. Any reason you can't pursue that option? Is his credit THAT bad?
You're correct. It is fraud and if the creditor finds out that you're not the one driving the car they can repossess the vehicle.

CH-7-Mission-Accomplished · ‎12-17-2015

@Anonymous wrote:
My dad wants to purchase a car, but had an event occur where he was charged off for not paying an ambulance bill that should have been covered. He wants to make the car purchase under my name. I know 100% all monthly payments will be fulfilled, but I just graduated college not too long ago, have over 100K in credit lines, and looking to apply to grad school. If I let him use my credit to make the car purchase, are there any chances of me not getting loans or having my future loans be subjected to higher interest rates, or any other negative repercussions? I have almost 0-2% utilization at any given time if that factors into anything.Thanks.

I assume you are talking about a collection when you say "chargeoff." Look up the whychat HIPAA method and follow it precisely and the collection will be gone. It works but is not discussed here except to point people to the Internet at the request of the person who perfected it.

How much does your dad make? Does he have any other debt? Credit cards? Other car loans? Does he have a mortgage? If he makes plenty of money and this car payment isn't a significant portion of his income, I don't see the harm in helping him out as long as you are comfortable being 100% liable.

One medical collection does not a deadbeat make, and parents are constantly cosigning and doing other things to help their kids out, so if it's no skin off your nose you can help him.

Now if he has **bleep** credit with late payments, repo's, etc., then it's obviously a no go.

Anonymous · ‎12-17-2015

Why doesn't Dad take the bull by the horns, get on this site (and some others) and see how to tackle the Charge Off?

rebuilding forum.

THEN if it's 100%, he can finance his own car at 0%.

I love my parents, they love me, but my sociological group would not do this. I'll sign my name to my Mom's Nursing Home, bout it.

Sorry love.

Anonymous · ‎12-17-2015

@Bankrupt2019 wrote:
If the OP signs on the dotted line it doesn't matter who drives the car. He will have to register and insure it in his name and he assumes all liability for the debt and the vehicle. I don't necessarily agree with you that this is fraud. I do However agree that It is a bad idea to ever take out a loan or even co-sign for anyone. Though I may be jaded, I've been burned a few times trying to "help" people.
@Anonymous wrote:
@Anonymous wrote:
This is what is called a straw purchase in the auto finance world, and it is a huge NO-NO. You will be breaching the terms of your agreement as soon as you sign on the dotted line. This should not be encouraged in what is supposed to be a reputable credit forum.

Now, co-signing is a totally different story. Any reason you can't pursue that option? Is his credit THAT bad?
You're correct. It is fraud and if the creditor finds out that you're not the one driving the car they can repossess the vehicle.

Oh it definitely can be considered fraud and is illegal in some states. It definitely violates the terms of an auto financing contract

https://www.autocreditexpress.com/blog/what-is-a-car-straw-purchase-deal/

CH-7-Mission-Accomplished · ‎12-17-2015

@Anonymous wrote:
@Bankrupt2019 wrote:
If the OP signs on the dotted line it doesn't matter who drives the car. He will have to register and insure it in his name and he assumes all liability for the debt and the vehicle. I don't necessarily agree with you that this is fraud. I do However agree that It is a bad idea to ever take out a loan or even co-sign for anyone. Though I may be jaded, I've been burned a few times trying to "help" people.
@Anonymous wrote:
@Anonymous wrote:
This is what is called a straw purchase in the auto finance world, and it is a huge NO-NO. You will be breaching the terms of your agreement as soon as you sign on the dotted line. This should not be encouraged in what is supposed to be a reputable credit forum.

Now, co-signing is a totally different story. Any reason you can't pursue that option? Is his credit THAT bad?
You're correct. It is fraud and if the creditor finds out that you're not the one driving the car they can repossess the vehicle.

Oh it definitely can be considered fraud and is illegal in some states. It definitely violates the terms of an auto financing contract

https://www.autocreditexpress.com/blog/what-is-a-car-straw-purchase-deal/

So is it fraud if you finance a car and send it off with your daughter who is heading off for college? I don't really see the difference .....

Anonymous · ‎12-17-2015

@CH-7-Mission-Accomplished wrote:
@Anonymous wrote:
@Bankrupt2019 wrote:
If the OP signs on the dotted line it doesn't matter who drives the car. He will have to register and insure it in his name and he assumes all liability for the debt and the vehicle. I don't necessarily agree with you that this is fraud. I do However agree that It is a bad idea to ever take out a loan or even co-sign for anyone. Though I may be jaded, I've been burned a few times trying to "help" people.
@Anonymous wrote:
@Anonymous wrote:
This is what is called a straw purchase in the auto finance world, and it is a huge NO-NO. You will be breaching the terms of your agreement as soon as you sign on the dotted line. This should not be encouraged in what is supposed to be a reputable credit forum.

Now, co-signing is a totally different story. Any reason you can't pursue that option? Is his credit THAT bad?
You're correct. It is fraud and if the creditor finds out that you're not the one driving the car they can repossess the vehicle.

Oh it definitely can be considered fraud and is illegal in some states. It definitely violates the terms of an auto financing contract

https://www.autocreditexpress.com/blog/what-is-a-car-straw-purchase-deal/
So is it fraud if you finance a car and send it off with your daughter who is heading off for college? I don't really see the difference .....

Well it can be considered fraud even in that scenario because she's certainly capable of being on the loan even if she has little to no credit. That's what co-signers are for. The problem is because should you default and she is the real 'owner' then the finance company has no way of tracking down the vehicle. Whether you realize it or not when you finance a vehicle there are terms in the finance contract that state that those parties to the contract will be the driver(s) of the vehicle.

Straw purchases are also a big way of money laundering especially in luxury cars.

takeshi74 · ‎12-18-2015

@Anonymous wrote:
If I let him use my credit to make the car purchase, are there any chances of me not getting loans or having my future loans be subjected to higher interest rates, or any other negative repercussions?

Sure. If the auto loan incurs derogatory information you can easily run into trouble down the road. Even if the account doesn't end up with derogatory information, an auto loan can have an impact on what you might be able to qualify for. It's another credit account (hard pull, reduced AAoA, change in DTI, etc) and it will certainly be taken into consideration along with all the other data on your reports. Granted, it's an installment which isn't seen as risky as a revolver. However, we can't tell you that impact. It all depends on your credit profile and the specifics of the auto loan. Two different people can have different results seeking future credit with an auto loan added based on their credit profiles.

Even with cosigning I'd be leery of doing it for anyone -- even my own father. IMO your father should address his own credit issues. If it's medical then google whychat's HIPAA method. All that said, we can't tell you if you should or not. That's your call to make.

@creditguy wrote:
He could always pay off the $1800 if thats whats holding him up.

Paying a derog doesn't really provide any benefit. It needs to be removed.

Anonymous · ‎12-22-2015

Took your guys' advice and didn't cosign or sign in my name. Dad still got 5 year 0% APR

Should I do this?

Get your FICO® Score for free