Suggestions for 20 yr old please......

[mzcat95]

Any suggestions on the best way to sell car to 20 yr old. daughter along with transferring auto insurance and other financial responsibilities for more independence without setting her up to fail affordably? She has been responsible in paying me for her cell phone/auto & medical insurance since those are in my name and she gets a MUCH better rate. Considering her applying for an auto loan or she could continue to directly pay me, unfortunately the auto insurance if switching to her name would cost her double. I'm trying to eliminate myself as the "middle man" for her expenses, but want to remain reasonable on costs for her. Whether she remains to live at home or move out, I want to continue moving in the right direction for her accountability/credit, etc.

 

[InsaneCdn]

What is the specific reason for wanting her to take those over NOW? as compared to, say, when she finishes college?

The cell phone, to me, would be the first thing she would take over. The gap on rates shouldn't be nearly so big, and it will help her credit rating in the long term.

 

[mzcat95]

What is the specific reason for wanting her to take those over NOW? as compared to, say, when she finishes college?

The cell phone, to me, would be the first thing she would take over. The gap on rates shouldn't be nearly so big, and it will help her credit rating in the long term.

Actually she doesnt respect the car or take care of it like I would and concerned about it losing value or being damaged while in my name. If she owns the car its up to her on how she takes care of it and its longevity...no longer my concern.

 

[InsaneCdn]

Actually she doesnt respect the car or take care of it like I would

Other than not keeping it in show-room-clean condition, what doesn't she respect about it? what kind of care is not being done?

concerned about it losing value or being damaged while in my name

To me, this means this is a pretty NEW car - not a typical "20-year-old student" car? I'm also going to guess that this "messiness" and "not respecting" thing isn't new - that she's been like this for years?

There is no way a full-time student with a part-time job can or should be paying on a car loan for a fairly new car. There are lots of affordable, well-running older cars. These older cars are also usually less cost to insure.

I don't think it fair to push the current car onto her. BUT. You are the one who agreed at some point to be the middle man. And now you want out. From her perspective, that isn't fair. She has limited funds, and is already paying you at lower cost than the best case she can get.

 

[Tanya M]

Hi mzcat,

There are some things that are just out of our control. How she is treating the car is one of them.

I suppose the value of the car comes into play in that if it's only worth a few thousand dollars, if it were me, I would just sign the title over to her and say, "this is an early graduation present" or something along those lines. If on the other hand it's worth considerably more, or you have a loan on it, then I would really consider getting her something less expensive.

The fact that she is going to school and has been responsible in paying you, I might be a little more lenient and try for a compromise. If you put the car in her name her insurance rates will probably go up, maybe you could split the difference and pay part of the insurance.
I would make it clear to her that you are doing this but there are conditions such as she needs to take better care of the car or she will have to pay all the insurance.

You have some real positives here in that she goes to school and has been paying you for the cell phone, auto & medical. That is so much more than many of us here have ever had.

Good luck in whatever you decide. Let us know how it goes.