jakeaggie84 said:

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But wouldnt have a prob with selling for low price ($2k) and making him buy full coverage insurance just in case.

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You don't have to sell him the truck for him to buy his own insurance on it. You can rent it to him for a $1.

Selling it just opens up a whole new can of worms. Make a rental agreement on a piece of paper you both sign that requires him to carry full coverage on it.

Seems you don't want to sell it, just have him be responsible with it... don't do a sell-then-buy-back routine, esp. if you're not selling for what you'd sell it for if you meant to really sell it with the intention of never getting it back somehow.

Does your daughter want the truck? (allowing that "She doesn't get a vote." is a valid answer.)

the plan was for me to get a new one this year and she was always going to use the old truck (she does want it). My cpa mentioned that it might be a good idea to get the truck in 2024 due to a possible change in depreciation for taxes, so i bought it a bit early.

The reason i lean towards selling and then selling back is that seems to get me 100% away from liability issues.

But i initially thought about a lease option.

And a reminder….i brought it up to him because i knew his oldest was going to turn 16 in January and wanted to get it off my books with someone i trust for a year or less. He doesn't want a truck long term. It wasn't my bleeding heart….it was confidence for both of us.

Biggest risks i see is something happening with the truck while he has it….wreck or stolen. Which is why insurance overage would play a big part in it.

Just know that if you sell it, he'll owe sales tax when he registers it. Then the same will happen in a year. It's 6.25% of the higher of the sales price or the "standard presumptive value", so there's not really any getting around it with a sweetheart price. Sometimes this can be avoided by making it a gift, but a friend doesn't qualify.

You can check the spv here

https://www.txdmv.gov/standard-presumptive-calculator#:~:text=Texans%20who%20buy%20a%20used,whichever%20is%20the%20highest%20value.

https://www.allstate.com/resources/car-insurance/non-owner-car-insurance#:~:text=Yes%2C%20non%2Downer%20car%20insurance,or%20rent%20for%20occasional%20use.

"What does it typically not cover?
Non-owner insurance does not cover damage to the vehicle you're driving or injuries to yourself. Other exclusions may include your personal belongings, intentional damages and business use."

NoahAg said:

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Don't loan things or money to friends or family. Either sell it to him or gift it to him with no expectation of getting it back.

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This 100%.

Kudos for helping, but plan it in your budget as a gift. If you get it gifted back it is a bonus.

DannyDuberstein said:

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Just know that if you sell it, he'll owe sales tax when he registers it. Then the same will happen in a year. It's 6.25% of the higher of the sales price or the "standard presumptive value", so there's not really any getting around it with a sweetheart price. Sometimes this can be avoided by making it a gift, but a friend doesn't qualify.

You can check the spv here

https://www.txdmv.gov/standard-presumptive-calculator#:~:text=Texans%20who%20buy%20a%20used,whichever%20is%20the%20highest%20value.

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You pay tax on 80% of the SPV or sales price, whichever is higher. The state at least cuts a small break with that 80%

Good catch. But yes, big picture, it's a chunk of cash 2X going to the govt

The whole "sell it and sell it back" thing is a silly dead end. Lots of paperwork, possible drama, trust issues, paying the gov't a ton in fees and taxes"... it's just silly.

That possibility just needs to die a cold death.

Lease it to him with insurance requirements or sell it to him outright saying goodbye to the truck forever.... those are your realistic options.

EOT.

jakeaggie84 said:

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"Responsible friend" means just that. Imagine your most trusting annoyingly perfect friend or family member. More responsible than me. Married and his oldest is turning 16 this month so was going to buy a new car and give his old one to the kid to drive. So not worried about him screwing me. Hopefully you know someone like that.

I mentioned it to him. He would use it just to go back and forth to work about 15 miles round trip a day. He was going to buy a new one but was thinking about waiting a year until rates and prices are better.

Options considered 1 would be my preference. If he totals it it's on him but I still have the KBB value to buy a car if needed.

The only stipulation would be for him to have full coverage on it if I give him a discount. And would trust him to make it right if something were to happen.

The truck is a 2016 f150. I got a new truck last month but still have some time before my daughter drives.

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Either sell it to him at a reasonable cost, or keep it in your driveway for your kid to drive next year.

If you sell it to him cheap with the "promise" you can buy it back in 18-months your just going to be disappointed. What about if he loses his job, or his financial situation changes b/c of a medical emergency, or his wife loses her job, etc. Way to many variables.

I'm sort of doing the same thing with my sister, but only b/c I trust her and she's family and I've never know her to be dishonest a day in her life. At first I was going to loan it to her but decided 'selling' was better so she could put it on her insurance and register it in her name. I sold her my Accord for a few grand, but it was worth $6k. She agreed that when she sells the car or trades it in, whatever happens, when it's no longer in her possession, she will give me the rest of the $$ to get to the $6k. 1-year, 2-years, 5-years, whatever, she owes me the rest of the $$ to make me whole. She was in a financial bind, I was getting ready to sell it private but I decided to help her out.

I bought a car for a friend once, and had it repaired before I gave it to them. They were struggling financially (I didn't make a ton of money at the time, but had the resources to help them). I didn't expect them to ever pay me back (they didn't) - it was a gift.

Either gift it to them with no expectation to get it back or sell it to them.

Personally, I'd just sell it outright (it's a truck and probably has good value) and then buy your daughter what she'd like in 1.5 years.