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Discussion Starter · #1 ·
Our 18-year-old-daughter will be leaving for college this coming fall, we are getting her a car and are thinking that it should be titled in her name. Does anyone here have any experience or thoughts, good or bad, going this route? We would buy the car and then gift it to her so we don't get taxed twice. I may put a small loan on it so she learns how to handle financial responsibility and starts to generate some credit. Our main concern is vicarious liability if the car is in our name. She has assets in a trust but they don't become hers directly until both parents pass and she reaches certain ages for incremental control.
 

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Have a similar concern with my daughter next fall but she expects to be on campus and doesn't plan on using her Avalon.
 

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Discussion Starter · #3 ·
Have a similar concern with my daughter next fall but she expects to be on campus and doesn't plan on using her Avalon.
She will be in an on campus dorm for at least the Freshman year. Bus and bicycle will get her to classes although it's too early to know which dorm and which classes and where they are located. The campus is huge plus she will be taking some courses at another campus 1/2 hour away from the main campus. While the commons are nice enough, I'm sure trips to pizza joints and places in town will be frequent and we aren't comfortable these days having her traveling at night in anything but her own locked car. Plus we want to make it as easy as possible to come home whenever she wants without having to call us to come get her or hitch a ride with who knows who? Different times than when we were in college.
 

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I'm very glad I did NOT have a car my first few years in college. The guys that did got so many parking tickets, and each had about 10 people a week asking them to run errands etc. It's a lot of responsibility, and college was a lot of fun without worrying about a car. I did buy some myself in later school years and learned some lessons the hard way
 

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Discussion Starter · #6 · (Edited)
I'm very glad I did NOT have a car my first few years in college. The guys that did got so many parking tickets, and each had about 10 people a week asking them to run errands etc. It's a lot of responsibility, and college was a lot of fun without worrying about a car. I did buy some myself in later school years and learned some lessons the hard way
All her current highschool buds have their own cars so they're all pretty independent. She's planning to room with at least one that's going to the same college. The past year has been tough on them doing things together as all the parents don't allow carpooling due to Covid and only knowing how well their own child drives. Our daughter knows how to say 'no' so if she has time to run errands I'm sure she'll be happy to, but If it gets to be too much and non-reciprocal, I'm sure she'll realize quickly that those aren't friends worth having. As far as parking tickets go, I'm not worried about it. I had tons myself ... they don't throw the kids in jail. But if you do get enough deliquent ones, it does cut into the beer money so you learn quickly to shape up, although she doesn't drink.
 

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Discussion Starter · #7 ·
Why not title it in her name as soon as you buy it?
The one downside I recently discovered talking to our insurance agent is that it will cost a lot more for her insurance if the car is in her name. I haven't checked with other companies yet though.
 

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Discussion Starter · #9 ·
High liability insurance rates are usually a deterrent to having a teen owned vehicle as well as parents reserving some driving habit restrictions. Good grades and a well disciplined child goes a long way in helping to make decisions like this.
Yep, so does having a lot of money to afford the insurance! It's going to more than double with no accidents or tickets, just her age (lack of driving experience.)
 

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High liability insurance rates are usually a deterrent to having a teen owned vehicle as well as parents reserving some driving habit restrictions. Good grades and a well disciplined child goes a long way in helping to make decisions like this.
I don't think the owner of the car makes much difference. If the teenager is the primary driver then the cost will be much higher.
As far as using the car as a bargaining chip, I haven't had to deal with that but the name on the title doesn't mean much if they can't afford to insure, repair and put gas in the car without parental assistance.
 

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The one downside I recently discovered talking to our insurance agent is that it will cost a lot more for her insurance if the car is in her name. I haven't checked with other companies yet though.
I never thought of that. I always figured it was whoever the primary driver of the vehicle was, regardless of who is on the title.
 

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Depends, will there be payments on the vehicle or will it be paid for outright? Who will be paying for the vehicle. Who will be paying for gas, insurance, repairs etc?

When our son was 16 years old he wanted to buy his first car. He saved a decent amount of money but for a couple of thousand more he could get a much better more reliable, lower milage vehicle. I cosigned a loan for him and the vehicle was in his name and my name exactly like that. Not an or title or an and or title.

Rules were simple, miss a payment loose the vehicle until you make the payment. 2nd time miss a payment an loose the vehicle for 30 days after he made the payment. He paid it off in 18 months, we both signed the title to get a new one in his name alone. He also started to build his credit at that time. 4 years later, 2 months after graduating from college he bought his first house.

If it is the daughter paying for everything then it's her vehicle, but if you are paying it should be yours. You can always sign it over later to her when she is done with college.
 

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Discussion Starter · #13 ·
Depends, will there be payments on the vehicle or will it be paid for outright? Who will be paying for the vehicle. Who will be paying for gas, insurance, repairs etc?

When our son was 16 years old he wanted to buy his first car. He saved a decent amount of money but for a couple of thousand more he could get a much better more reliable, lower milage vehicle. I cosigned a loan for him and the vehicle was in his name and my name exactly like that. Not an or title or an and or title.

Rules were simple, miss a payment loose the vehicle until you make the payment. 2nd time miss a payment an loose the vehicle for 30 days after he made the payment. He paid it off in 18 months, we both signed the title to get a new one in his name alone. He also started to build his credit at that time. 4 years later, 2 months after graduating from college he bought his first house.

If it is the daughter paying for everything then it's her vehicle, but if you are paying it should be yours. You can always sign it over later to her when she is done with college.
I like the way you handled that but I just turned this article up on a net search and I have to admit I didn't realize vicarious liability was so cut and dried (already tested in our Supreme court) here in Florida.
Own a car in Florida? You can be liable..... - Legal Guides - Avvo
 

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Might consider online classes. It's crazy out there.
 
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Today's kids are spoiled.
I didn't have a car while in college - let alone high school.
My parents drove me to and from college at the beginning and end of each semester.
To go home for mid semester breaks, I took public transportation - aka the train.
Around campus I either rode my bicycle or walked.
It's called building character.
My first car came only after I graduated and started working, so that I could afford to pay for it and the insurance.
 

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Today's kids are spoiled.
I didn't have a car while in college - let alone high school.
My parents drove me to and from college at the beginning and end of each semester.
To go home for mid semester breaks, I took public transportation - aka the train.
Around campus I either rode my bicycle or walked.
It's called building character.
My first car came only after I graduated and started working, so that I could afford to pay for it and the insurance.
🙄
Nothing wrong with giving your kids nice things.
Parents providing for their children doesn’t equal being spoiled or bratty.
Plus it’s easier on the parents to not have to drive their teenagers around all the time.
 

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I like the way you handled that but I just turned this article up on a net search and I have to admit I didn't realize vicarious liability was so cut and dried (already tested in our Supreme court) here in Florida.
Own a car in Florida? You can be liable..... - Legal Guides - Avvo
One of the reasons we did what we did. Parking tickets go to the person listed as the owner. Get a parking ticket and don't pay it, no car until it is all paid for. As long as I was a cosigner on the loan I had an interest in the vehicle so I was going to be on the title so I could protect my interest. The minute it was paid off my name came off the title. He bought and paid for it, paid his own gas, repairs, insurance etc.

He learned a lot about finances and taking care of and paying for things. He has since bought a second larger home, for him and his two young girls. 3 bedroom, 2 1/2 bath, full finished basement. There is actually a 4th bedroom in the basement however it can't be classified as such as there is not escape window in that particular room. A slightly smaller room is his office as his job lets him work from home.

As far as vicarious liability. you have lived with that for 18 years so far, and in my books you have an excellent teaching opportunity available to you, depending on your mind set.
 

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Just throwing this out...

If worried about liability, have you checked with your agent about an umbrella policy? I am not sure how it would apply to vicarious liability but your agent should know. When I checked I was surprised at how cheap (relatively) an umbrella was.

It might be that you could leave her on your policy as a driver instead of owner if an umbrella policy would cover the liability angle.
 

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Regarding gifting it or trying to avoid paying taxes twice, most states exempt sales tax on sales between immediate family.

Personal umbrellas are usually a few hundred $ per million, but just increase your limits on any underlying policies.

It's not gonna help the premium if the car policy goes up anyways with the youth as a primary driver.
 
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