Is the friend going to have same address as you? If not, bigger issues. If he is going to live with you in same household for duration of lease, it’s no different than leasing and allowing your son to drive.
I haven’t seen anything that says that’s a true statement
We are talking in generalities here. There are general federal laws but not about straw purchases. Rather about lying on loan agreements. OP needs to be honest about straw purchase.
For example, a family friend just leased a car solely for the use of their au pair since she is a 19 year old Columbian who obviously can’t lease/finance a car herself. Is this, on its face, illegal? Their attorney said no. But if the woman uses the car for non-business purposes it is taxable remuneration.
My guess would be the only issue is the finance agreements and lying on them. Co-signing is likely the best way forward here cause that would deal with any issues involving disclosure on the finance agreement. I don’t know how liability works but OP also should make sure they aren’t secondarily liable for any accident (if damages exceed insurance coverage and friend can’t pay judgement). I don’t think co-signers are normally liable beyond making finance company whole but I don’t know that and it could vary by state.
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I mention the issue isnt the straw purchases it is lying on the finance application. Co-signing solves this issue. As does seeing if a dealer will let him list his friend as the primary user of the car/disclosing the relationship. I’ll edit my post but all OP needs to do is be honest. Straw purchase isn’t illegal. Lying about straw purchases is the issue. But even then it’s a bit of an open question. Like if OP’s friend intends to return perform services for OP in said car, then that may allow OP to legally purchase the car in his name.
I don’t know that I have ever seen a lease contract that says “I’m leasing this on behalf of someone else” though, so can one even do a straw purchase that isn’t fraudulent?
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Why don’t you have any other choice? He doesn’t have any savings to buy a 10k used car?
OP (seems to be long gone) did mention his friend already has an offer letter, he should be able to get a car albeit with higher interest rates. Maybe time to put this thread to bed.
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Call Dave Ramsey show ask what he thinks. Let me know when you do love to hear his answer.
The OP clearly noped out 9 replies into this thread