Truck Not In My Name, Good Idea, Or Not?

[myrdale]

I drive a 2002 Nissan Frontier. We purchased it new while I was still in college. The truck was purchased in my fathers name and the arrangement we had at the time was my father would make payments while I was in class, and I would cover the payments during the summer and once I graduated. Over the past 8 years, the truck has served me well, and I could not ask for more.

When I graduated, I moved from Alabama to Georgia for my job, and quickly paid off the remaining balance on truck loan. At the time I did not see my job being long term. For this reason we kept the truck in his name, and we kept the Alabama license plate on the truck, figuring as soon as I paid for a Georgia plate, I would be back in Alabama and be switching back.

A year went by, and when I purchased my house, I rationallized keeping the truck in my fathers name incase I were to run into trouble, my only form of transportation would not be in my name.

I have a GA drivers licenses, I have the truck insured in Georgia in my name. I pay the insurance myself. I send my father the money every year for tags for the truck.

Over the past 4 years I have been through two road blocks. The state troopers look at me real ugly when I hand them a GA drivers licenses and they see I have an Alabama tag, but ugly looks is all. I went by the tag office here in Georgia, they didn't care as long as I keep current tags on the truck. The insurance company didn't seem to mind either as long as I am paying my bill.

I do feel secure in my job and I could find another if I had to. I have a good emergency fund in place and I hammer away at my mortage. I am in no danger of the possiblity of foreclosure. But IF such a thing were to happen, would having the truck in my fathers name be a good idea? Being a FHA loan does it matter?

Are there any reasons that would make our arrangement an extremely stupid knucklehead idea? At this point I would hate to spend a couple hundred dollars to switch the truck over to my name and get tags and license plates, only to find myself back in Alabama in a year or two and have to do everything all over again?

Ultimately I feel having the truck in his name gives me a sense of security mainly due to my mortgage. How wrong am I?

[GrimJack]

Yeah, if you get into an accident and are sued, your father could be dragged into the law suit as owner of the vehicle. Also, I am pretty sure that it is considered fraud to own/use a car that is licensed in a different state.

It is a real problem here in WA state; many people register their cars in Oregon because OR has not sales tax, and WA does.

[Joan.of.the.Arch]

Yeah, it might give you some security. If you are found at fault in an accident or even just partially at fault and there is a judgment against you, it is your Dad's insurance that would need to kick in. Do you think it would? What if --say-- two or three people are permanently disabled and have millions of dollars in medical care in their future? Is your Dad's insurance going to perhaps look for a way out of covering that? Is the insurance company even aware of this arrangement?

Right now we have a similar arrangement with our insurance company and son still in college. But he is in the same state, and our home is his permanent address. We even get to use his truck once in a while. The insurance company asks for a grade report from him to verify that he is still in school and qualifying for good student discounts (I had thought these would stop after high school age.)....Once he graduates and has income, I will expect him to cover his own insurance. If I had tons of money and just wanted to cover it for him as a gift, I still would have him shop for it and put it in his own name. I would not think him a responsible grown-up if he were eager to palm off his responsibilities on me and my DH.

[disneysteve]

I didn't realize it was possible to register a vehicle in one state but insure it in another. I know that isn't possible around here. Lots of people in PA register and insure their cars in NJ using a relative's address or a work address in order to take advantage of the vastly lower insurance costs in NJ. That is fraud and clearly illegal, of course. You have it insured where you actually live, so that isn't an issue. I'm not sure if having it registered in another state is a problem or not. I would check with the DMV in Georgia.

GrimJack makes a good point about liability, though. This is your car. No reason to have your father's name on the title. If anything happens, why should he get dragged into anything concerning your car. Put the car in your name and register it where you currently live. If you move, change it.

[HistoryChick]

I was hit by an uninsured driver in college while driving a car my mother purchased for me (but kept in her name). Even though mom had nothing to do with the accident and lived out of state, she still had to fly out to every trial because the car was in her name.

FYI: the uninsured motorist never made it right, missed trials, etc. Mom, however, was the one who paid out the most money from the event (b/c of travel expenses)

[cschin4]

I think there are some laws about needing to change your plates if that is your legal residence. I could be mistaken. I am not sure it would cost "several hundred dollars" to change the title ownership. I think that is an exaggeration that you are telling yourself as a reason not to do it.
If it is your vehicle, then you need to change it to your name. So, time to cut the apron strings so to speak.
But, another point, it is your father who would be more at risk than you. He is taking more a risk by you driving this and it is his name. If you got into a unfortunate accident, he could be liable as well so i don't see any advantage to keeping the present arrangement.

[Cylenchar]

The laws vary state to State, in Colorado, you have to register pretty quickly if you are a resident(ie, have colorado drivers license). Failure to do so results in a rather large fine (but we also have emissions tests that are required). I would transfer it into your name just to simplify everything.

[poundwise]

If you possess it, drive it, paid for a substantial portion of it, it was intended for you from the beginning and you are an adult, living on your own, with a job, paying insurance, etc., then I would definitely seek to put the truck in your name.

What would be a reason not to do so?

[wincrasher]

Regardless of who owns the car (name on the title) the insurance should match the state. Georgia plates, georgia insurance. Alabama plates, alabama insurance.

That is all that's important. I have cars registered in different states because I own homes in different states. But I only have a driver's license in one. I have insurance on the cars in those states that match their tags. I too have gotten "looks" at roadblocks about my driver's license not matching the tag. But I'm not in violation, so I don't care.

[myrdale]

Poundwise, I think a bit of it was "apron strings" as Cschin4 said. A bit of it is also a misplaced sense of security "just in case" I were to ever loose the job, burn though savings without finding another job, then get forclosed on. Also I'd rather my tax dollars go back home. Lastly in a state full of Georgians, I do take pride in having something that publicly announces that I am from Alabama.

As of right now wincrasher I have Alabama plates, Georgia license, and Georgia Insurance. That will all be changed Monday.

I went by the tag office today, but they are on furlow due to the cold weather, but should be back in the office Monday morning at 8 am.

[JanH]

We just had the same issue with DS's car. In Texas, we signed a paper we got at the tax office (you can get one online) stating that the car was a gift. Then, DS had to pay the transfer fees or something. But, he didn't have to pay any state tax as if it was a sale. He had to have that plus the signed title. I think he had thirty days after the signing to reregister the car. After that, additional fees applied. In his area, an emissions test was also required. We also worried that the different insurance companies would try to get the other one to pay if something happened. We had a different company than he did. It was a relief to get all the ducks in a row.

[myrdale]

JanH I am not aware if you can simply transfer a title or not. I had heard that I would have to pay the sales tax for the purchase. If you do not have a receipt then they charge you market value for the truck.

I will ask if it can simply be transferred, but if not, I've already got a receipt for the sale, $1.

[JanH]

myrdale I am not sure what the rules are in each state. Ours was a paper with the sales stuff and all on it. It had a little section where you could check if it was a gift and sign with odometer reading. I think they still had to pay a transfer fee of ten dollars plus some other fee because they waited too long to transfer it. Sounds like a sale receipt of $1 would work pretty well, too!

[GrimJack]

Here in Washington - it does not matter if you received the car as a gift or paid cash, if you drive in the state you have to support the state transportation infrastructure. If someone gave you the car or sold it to you for a dollar, the state still assesses you for the value of the car. One way it is a sales tax the other a use tax.

[SoCalifrugal]

If the tag office and insurance company don't care, then I don't see what the problem is. I would say check the Georgia transportation website if you are looking to ease your mind.