I want to sell my car to my son and retain title until he pays it off in four years. This would keep the 1st owner 100,000 drive train warranty remain in effect. But, I want him to register the car with the DMV and carry the insurance. Is this possible and is it legal?
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1If you're retaining title, what is he going to do at the dmv? – littleadv Jan 14 '16 at 22:26
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2The answer to "is this legal?" depends on the law, which varies with locale. Please [edit] your question to specify the relevant jurisdiction. – user Jan 15 '16 at 10:30
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1I'm just guessing, but Omaha, Nebraska might be the jurisdiction.... ;-) – Peter K. Jan 15 '16 at 12:34
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Car title regulations vary between different states and countries. In general, however, you can usually add and remove names on a car title. You could go to the DMV and add your son's name to the title, leaving your name on the title. At that point, the car legally belongs to both of you. After your son has paid for the car, you can remove your name from the title.
Often there are regulations about minimum sales values for cars when titles are transferred, in order to generate state sales tax. However, there are usually exceptions to this for transfers between parents and children. In other words, it is usually legal to give a vehicle to your son for free with no sales tax due. As a result, you would probably not be breaking either the spirit or the letter of the law by doing this.
Again, I want to state that without knowing where you live, this is only a guess.
Ben Miller
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