What are the pros and cons of buying a car under parents' names?
3 Answers
Purchasing a car this way is feasible, as only an ID card is required during the purchase without needing a household registration. Below are relevant details about car purchasing: 1. Considerations: The purchase invoice is the most important document when buying a car and serves as one of the credentials for vehicle registration. Therefore, it's essential to obtain the purchase invoice from the dealer and verify its validity. 2. Vehicle Inspection: For vehicles eligible for the six-year exemption from inspection, the vehicle does not need to be physically present. Simply bring the vehicle license, the ID card of the person named on the license, and a copy of the valid compulsory insurance policy. Check for any traffic violation records on the traffic management website and proceed to the nearest inspection station to complete the process.
I've been pondering the idea of buying a car under my parents' name recently. As a young adult fresh out of college, the benefits seem quite appealing: leveraging their excellent credit score to secure a car loan with attractively low interest rates, and significantly reduced insurance premiums—since new drivers like me often face steep rates, having the car under their name could save a substantial amount monthly. Maintenance becomes more convenient too, as I can hitch a ride with them to service centers. However, the drawbacks are considerable: ownership lies entirely with them, meaning selling the car or making cool modifications like adding LED light strips requires their permission, which can be a hassle. The biggest headache is that the insurance must be under their name, so any accidents would directly affect the entire family's records. Long-term, this could hinder my credit building and diminish my ability to purchase a car independently. Family dynamics might stay harmonious in the short term, but financial or driving-related disputes could quickly strain relationships. Overall, while it saves money initially, the constraints outweigh the benefits, making it a losing proposition.
From my perspective, helping my child buy a car under my name has its pros and cons. The benefits are obvious: it can save young people a significant amount of money, car loans get approved faster with lower interest rates, and insurance premiums may be about 25% lower due to my good record compared to them insuring themselves; sharing the car for family outings is heartwarming and saves resources. However, the drawbacks are also considerable: as the legal owner, I am jointly liable if my child causes an accident while driving, such as fines for violations, which can easily strain our relationship. The insurance process is complicated, requiring accurate addition of the child as a driver with additional fees; maintenance means I have to personally visit the dealership, which is time-consuming and labor-intensive. Using my credit affects my own opportunities to buy a car. Safety concerns mean I need to constantly monitor my child's driving habits, increasing the risk. Overall, it requires careful consideration—while it shows care, it also adds uncertain burdens.
