Legal Question in Credit and Debt Law in California

Re: Automobile ''Straw'' Purchase

Don't do it. Go back and review some posts under this legal category - almost weekly there are posts from people who got burned doing exactly this, and it doesn't matter if its family or otherwise. Invariably what happens is that the person who's credit was used ends up having to make payments on their own, for a car that they no longer possess just to keep their credit from going down the tubes. Additionally, you will have to carry the insurance if you intend to "trick" the lender into thinking you really have the car, and if your insurance company discovers that the car is actually in FL being driven by your brother regularly, they will probably deny the inevitable claim when he damages or totals the car. You also could be liable in the event that he gets into an accident with the car. Finally, and this is the biggy, you are intentionally defrauding a lender by making a "straw" purchase. You are representing to the lender that you are buying the car in your name, to be driven by you in California. If you go into this with different intentions, you have defrauded the lender, and could have the loan called at the first point at which they discover this. I highly recommend, with much experience trying to unwind these messes after the fact, that you just avoid it entirely.

*Due to the limitations of the LawGuru Forums, The Gibbs Law Firm, APC's (the "Firm") participation in responding to questions posted herein does not constitute legal advice, nor legal representation of the person or entity posting a question. No Attorney/Client relationship is or shall be construed to be created hereby. The information provided is general and requires that the poster obtain specific legal advice from an attorney. The poster shall not rely upon the information provided herein as legal advice nor as the basis for making any decisions of legal consequence.