Buying A Car For Someone Else To Drive -

Taking out a loan in your name for a car someone else primarily uses is often flagged as an "accommodation deal," which many lenders prohibit.

Financing a car for someone else is significantly more restricted than buying one outright:

You must accurately declare who the primary driver is. Claiming you are the main driver to get a lower rate for a younger person is called "fronting" and can lead to a cancelled policy or criminal charges.

In some regions, if the car’s value exceeds a certain threshold, you may need to file a gift tax return.

Speak with your lender about whether they allow the primary driver to be different from the borrower.

Buying a car for someone else—whether it’s a gift for a child or a vehicle for a partner—is a generous move that requires careful navigation of legal, financial, and insurance hurdles. If you don't plan the paperwork correctly, you could accidentally commit "fronting" (insurance fraud) or face unexpected tax bills.