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Can I get a car loan to buy a used car for my brother?
My brother needs a car, but he doesn't have any credit or cash. Can I take out a used car loan to get him the car?
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
That’s a nice gesture! I’m happy to say that you can definitely get a
car loan
to buy your brother a car.One of the main factors to consider is whether you want the car to be a gift. If you do, you should put the car loan in your name. If it’s not a surprise, you can put both your name and your brother’s on the loan. Obviously, he’ll know about it, so it’ll no longer be a surprise—but it can still be a gift! You can also choose the main borrower and the co-borrower, in this case.
If your brother doesn’t have much income or he has poor credit, you may want to consider putting the car loan in your name alone. You can always work out a plan with your brother to pay you back. To get the loan, start by shopping around. Once you find the best rate, apply for the loan. Make sure you have the credit and income to get the loan so you’re not shocked or surprised if you’re declined.
Once you purchase the car, you can put the title in your name or have both of your names on the title. Your name absolutely must be on the title if the loan is in your name.
As far as car insurance, you can put both of your names on the policy. Car insurance companies require the main titleholder and borrower to be on the policy. Then, you can add your brother as another driver.
Since the car will be financed, keep in mind that your brother will need full coverage car insurance. To get the best deal possible, have him check out the
Jerry
app—we’ll get him customized quotes from top providers, so that all he needs to do is pick the plan that works best for him.Best of luck with everything, and hope your brother enjoys his new ride!
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- Gregory R.
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