What's the best way to buy a car for my step daughter?

[Enut]

My step daughter needs a car and has no funds, she is likely to come into some money early next year. I have said I will buy her a car and she can pay me back next year but what is the best way to do it?

Do I buy it and register it in my name, then transfer it to her when she has paid me back? If so will I need to insure it (I already have a multi car policy but really don't want the expense of insuring 'her' car), or can she insure it, even though it's in my name?

Or do we just register it in her name? Much easier but what comeback do I have if she never pays me back?

It's probably going to be about £8,000 which isn't a fortune but she has a history of not paying me back smaller amounts (£2,000), which I was going to write off assuming she pays me back the £8K.

Apologies if this is straightforward for some but I've not done this before.

[dundarach]

You buy it and keep it.

Ring insurers and explain she's the main driver and it will be kept at her house and you might want to be named as infrequent driver.

Be totally honest with the insurers, she pays the insurance.

You keep a key.

She rents the car from you and if, once her cash arrives, she can buy the remaining amount.

Your car, you own, you sell if you want in the future.

Why does she need to own it, or it be registered in her name anyway?

Be honest with insurance.

Risk, she cancels insurance you get done driving it.

Sounds like a pain in the ass!

[TimmyMallett]

You can the be registered owner and she can be the registered keeper but you are responsible for making sure it is insured. That's not to say you have to pay for it,but if she drove uninsured and gets in trouble and the car is seized you lose the car potentially. Fines and accidents will go to the keeper. The keeper is responsible for getting it MOT'd and actually insuring it.

Depends on the likelihood of the funds appearing next year and whether there is a chance of it all going tits up?



edit - took me ages to type this while DD above was posting...

[Enut]

Thanks for the posts, just to clarify she recently sold her car to buy a horse (!) And is therefore car less until she sells her other horse, which the person who currently loans it from her wants to do but can't until next year. The horses explain why she hasn't got any money......

[Another project]

If you're that concerned about not being paid back don't lend the money, let her go and buy one on finance. That much money being loaned to family can cause unnecessary family issues

[Enut]

TimmyMallett said:

You can the be registered owner and she can be the registered keeper but you are responsible for making sure it is insured. That's not to say you have to pay for it,but if she drove uninsured and gets in trouble and the car is seized you lose the car potentially. Fines and accidents will go to the keeper. The keeper is responsible for getting it MOT'd and actually insuring it.

Depends on the likelihood of the funds appearing next year and whether there is a chance of it all going tits up?



edit - took me ages to type this while DD above was posting...

So to clarify, I can buy it and own it (as confirmed by a simple contract of sale with the seller), but complete the registration documents in her name so she is the registered keeper and responsible for MOT, tax and insurance etc. My liability us that in the event that she drives uninsured and the car is seized I would need to sort it out or risk the car being crushed (this is extremely unlikely to happen as she is very 'car proud'). Once she pays me back I simply do a deed of sale confirming that she is now the owner. Seems a simpler way of doing it than me being the registered keeper and having to sort insurance etc etc.

Does the fact that she is the registered keeper but NOT the owner make it tougher for her to insure? She has points etc so it's not easy anyway.

[Enut]

Another project said:

If you're that concerned about not being paid back don't lend the money, let her go and buy one on finance. That much money being loaned to family can cause unnecessary family issues

She can't get finance, previous money problems (hence her owing me money due to bailing her out) have seen to that.

[aka_kerrly]

Given her apparently poor financial history I'd chuck £1k on a Aygo/C1 , honda jazz or something of that nature and not expect any money back.

Something like this
http://www.autotrader.co.uk/car-details/2023091218...


If she doesn't like it/appears ungrateful then tough sodding luck. It's a functional car and if she wants a nicer car she can get shot of the horse(s)/ get a cheaper hobby until she can afford it.

Sorry if that sounds harsh but if you've previously given thousands with no real attempt to repay she will never learn her lesson.

[Yellow Lizud]

Enut said:

My step daughter needs wants a car and has no funds, she is likely to come into some money early next year. I have said I will buy her a car and she can pay me back next year but what is the best way to do it?

Do I buy it and register it in my name, then transfer it to her when she has paid me back? If so will I need to insure it (I already have a multi car policy but really don't want the expense of insuring 'her' car), or can she insure it, even though it's in my name?

Or do we just register it in her name? Much easier but what comeback do I have if she never pays me back?

It's probably going to be about £8,000 which isn't a fortune but she has a history of not paying me back smaller amounts (£2,000), which I was going to write off assuming she pays me back the £8K.

Apologies if this is straightforward for some but I've not done this before.

FTFY

Just don't do it. Your stepdaughter has no idea how to manage money and is taking the piss.
Hence the £2k already owed, and the fact that if she needed a car she wouldn't have sold the last one.

Money and friends/family rarely mix well, so unless you are prepared to sponsor her horse and except the fact you will never see the money again then steer well clear.

[Yellow Lizud]

Blimey, my last post was written before I knew she couldn't get credit and has points on her licence already.

RUN LIKE HELL

[Bill]

aka_kerrly said:

Given her apparently poor financial history I'd chuck £1k on a Aygo/C1 , honda jazz or something of that nature and not expect any money back.

Something like this
http://www.autotrader.co.uk/car-details/2023091218...


If she doesn't like it/appears ungrateful then tough sodding luck. It's a functional car and if she wants a nicer car she can get shot of the horse(s)/ get a cheaper hobby until she can afford it.

Sorry if that sounds harsh but if you've previously given thousands with no real attempt to repay she will never learn her lesson.

This. Unless you're happy to write off another £8k.

[Enut]

I really appreciate all your comments and, to a certain extent, agree with them. However I am going to do this and I'm a big boy (although not a powerfully build company director) and can cope with the loss if it all goes pear shaped.

[MrBen986]

Doesn't sound like she'll ever take any responsibility if you keep bailing her out!

[Crudeoink]

I'd place a good bet on her not paying you back. Only pay for the car what you are prepared to lose. Dont forget, if she cant afford to buy a car now, will she be able to afford 4x new tyres, brakes, MoT's, Insurance? If you help her with the initial purchase the money lessons aren't learnt and i'd wager that you'll be expected to help with some of that too! This is of course coming from a entirely objective point of view and how much financial support you choose to give your step daughter is up to you.

[blue_haddock]

aka_kerrly said:

Given her apparently poor financial history I'd chuck £1k on a Aygo/C1 , honda jazz or something of that nature and not expect any money back.

Something like this
http://www.autotrader.co.uk/car-details/2023091218...


If she doesn't like it/appears ungrateful then tough sodding luck. It's a functional car and if she wants a nicer car she can get shot of the horse(s)/ get a cheaper hobby until she can afford it.

Sorry if that sounds harsh but if you've previously given thousands with no real attempt to repay she will never learn her lesson.

definitely the wya to go.

Cheap sh!tter to keep her mobile at minimum cost to yourself.

[georgefreeman918]

Enut said:

Thanks for the posts, just to clarify she recently sold her car to buy a horse (!) And is therefore car less until she sells her other horse, which the person who currently loans it from her wants to do but can't until next year. The horses explain why she hasn't got any money......

If she has a horse, I wouldn't expect a penny back! There will be countless rugs needed, shoeing, saddles and clothing for every discipline and that is before she has fed the thing with a vast array of expensive potions! (Speaking from experience!)

[Enut]

georgefreeman918 said:

Enut said:

Thanks for the posts, just to clarify she recently sold her car to buy a horse (!) And is therefore car less until she sells her other horse, which the person who currently loans it from her wants to do but can't until next year. The horses explain why she hasn't got any money......

If she has a horse, I wouldn't expect a penny back! There will be countless rugs needed, shoeing, saddles and clothing for every discipline and that is before she has fed the thing with a vast array of expensive potions! (Speaking from experience!)

She currently has 3 horses, one is being put to foal by someone else, so her expenses for that one are nil and the agreement is that she sells the other one to repay me, so she will actually end up with just one, which should make her finances easier to balance going forward.

[paulrockliffe]

There's a kid near me, too young to drive so has no car but does have a horse. If she needs to get places she just takes the horse, I often see her galloping along the bridleway past the end of my garden. I'm sure it terrifies most of the locals, but it's worked for centuries...

[h0b0]

How old is the step daughter?


I know you don’t want to hear the following for two reasons

1 it’s painful to hear
2 you already know it’s true


She is taking advantage of your relationship with her mother and knows that if you put a foot wrong with her she can screw it all up for you and her mother.

Say it out loud. She sold her car to buy a horse and now you are buying her a car. Buy her a car and the lesson you are teaching is “success, I got a car and 3 horses”.

Did she ask to borrow money to buy her third horse? Yes, you turned her down. No, she knew you would turn her down but you are buying the horse in reality.

They always say you can’t drive to work in a house but you can sleep in a car… well, she can ride the horse to work!

[Cold]

Enut said:

I really appreciate all your comments and, to a certain extent, agree with them. However I am going to do this and I'm a big boy (although not a powerfully build company director) and can cope with the loss if it all goes pear shaped.

Financially, you can cope but what about all the emotional fallout from her failure to pay you back. Just buy a cheapo car (definitely not £8k's worth!) and give it to her as a present. Feelgood factor all round and her transport problems solved.