How bad of an idea is it to put my girlfriend name on the car?

Jun 27th, 2018 9:43 am

#1

waterbottleemo [OP]: Newbie; Apr 1, 2017; 87 posts; 13 upvotes

Jun 27th, 2018 9:43 am

How bad of an idea is it to put my girlfriend name on the car?

Hey,

So Mazda have 2 incentive: Recent Grad, and new owner. The dealership suggest me to put my girlfriend name on it (she fit both category) and get $1k rebate.
That sounds like an dangerous idea. Im financing the car and have enough to pay for the car, but what if we break up what would happen?? what kind of right does she have on the car?

Thanks!

Jun 27th, 2018 9:56 am

#2

MusicBox: Banned; Dec 15, 2017; 1847 posts; 610 upvotes; Toronto

Jun 27th, 2018 9:56 am

waterbottleemo wrote: ↑ Hey,

So Mazda have 2 incentive: Recent Grad, and new owner. The dealership suggest me to put my girlfriend name on it (she fit both category) and get $1k rebate.
That sounds like an dangerous idea. Im financing the car and have enough to pay for the car, but what if we break up what would happen?? what kind of right does she have on the car?

Thanks!

If you guys break up, half that car is her's, even if she never contributed a penny for it. Why did you even mentioned to them you had a GF?

+3

Jun 27th, 2018 9:58 am

#3

vkizzle: Deal Expert; Aug 22, 2011; 38242 posts; 24426 upvotes; Center of Universe

Jun 27th, 2018 9:58 am

Small claims...
You can easily prove that she didn't make any payments.

+1

Jun 27th, 2018 9:59 am

#4

jzmtl: Deal Addict; Jun 14, 2008; 4247 posts; 3083 upvotes; Montreal

Jun 27th, 2018 9:59 am

If it's in her name then it's essentially her car, isn't it? Dealer is only interested in closing the deal, any problem down the road isn't their concern.

+4

Jun 27th, 2018 10:02 am

#5

booblehead: Deal Expert; Jul 30, 2007; 32089 posts; 19313 upvotes; Toronto

Jun 27th, 2018 10:02 am

she can claim it's a gift from you. If you want it back, then lawyer up

Smiling Face With Open Mouth And Smiling Eyes

+1

Jun 27th, 2018 10:10 am

#6

Anikiri: Deal Guru; May 1, 2012; 10426 posts; 11110 upvotes; Toronto

Jun 27th, 2018 10:10 am

Who would try and pilfer half a used Mazda 3?

+6

Jun 27th, 2018 10:21 am

#7

canoek: Deal Addict; Jul 30, 2015; 4085 posts; 3363 upvotes; Toronto, ON

Jun 27th, 2018 10:21 am

I thought you were talking about a vanity plate and thought that was a bad idea. Now this is worse.

+14

Jun 27th, 2018 10:33 am

#8

Xtrema: Deal Fanatic; Sep 1, 2004; 9677 posts; 9207 upvotes

Jun 27th, 2018 10:33 am

Here what you do:

Do a $0 down loan, than mean you will be upside down for at least the 1st 3 years of ownership (car worth less than the amount owing). So when you have 0 equity, 1/2 of that is still 0.

If you do break up, she insist on half the car, walk away and she can have ALL the payments on a negative equity.

Cars are not asset people. Cars are liability.

Now, putting her name in the house title/mortgage on the other hand, don't do it.

+2

Jun 27th, 2018 10:38 am

#9

booblehead: Deal Expert; Jul 30, 2007; 32089 posts; 19313 upvotes; Toronto

Jun 27th, 2018 10:38 am

^ better to have a 'drop dead' date for that negative equity in place on your calendar.

Jun 27th, 2018 10:39 am

#10

CloudReader: Member; Feb 2, 2018; 414 posts; 387 upvotes; Montreal

Jun 27th, 2018 10:39 am

I'd only do it if you guys have been dating long-term and are committed to one another. Also depends on the personality and if she's not suffering financially, that's a plus too. I did this to get 750$ new grad discount from Subaru with my then gf, now wife. She's a fair person, and not remotely the type to swindle someone. On top of that, she would not need the money/car anyhow.

+1

Jun 27th, 2018 11:25 am

#11

Symplr: Member; May 17, 2018; 277 posts; 125 upvotes

Jun 27th, 2018 11:25 am

OP, if you don't feel comfortable doing it, don't do it. Also, consult her, not just RFD, if you are inclined to do it.

“Of this one thing make sure against your dying day – that your faults die before you do.” - Seneca

Jun 27th, 2018 11:35 am

#12

yao416: Deal Expert; Mar 22, 2007; 28751 posts; 9353 upvotes; Hamilton

Jun 27th, 2018 11:35 am

$1,000 not $10,000

hated on but respected.

Jun 27th, 2018 11:49 am

#13

koffey: Deal Expert; Oct 6, 2010; 15506 posts; 10156 upvotes; Toronto

Jun 27th, 2018 11:49 am

canoek wrote: ↑ I thought you were talking about a vanity plate and thought that was a bad idea. Now this is worse.

lol, I was thinking the stickers just above the door handle.

DYI difficulty scale:
0-joke
10-no joke

+2

Jun 27th, 2018 11:51 am

#14

COSMIC5: Deal Fanatic; Aug 11, 2008; 9342 posts; 1902 upvotes; Ontario

Jun 27th, 2018 11:51 am

If you add her name to the vehicle, her name will also be on the insurance policy as a named insured

RIBO LICENCED INSURANCE BROKER, over 35 years experience

+1

Jun 27th, 2018 12:04 pm

#15

Xtrema: Deal Fanatic; Sep 1, 2004; 9677 posts; 9207 upvotes

Jun 27th, 2018 12:04 pm

booblehead wrote: ↑ ^ better to have a 'drop dead' date for that negative equity in place on your calendar.

$25K Mazda 3 has a 72 month finance payment of $344.

Depreciation is 20% 1st year and 35% after 3 years. So you won't really have positive equity on the car until around 2.5 years.

+1

Jun 27th, 2018 12:15 pm

#16

waterbottleemo [OP]: Newbie; Apr 1, 2017; 87 posts; 13 upvotes

Jun 27th, 2018 12:15 pm

haha well she is pretty mature and fair. And I didn't talk to her yet, I want to make sure it is something I want before even talking to her.

COSMIC5 wrote: ↑ If you add her name to the vehicle, her name will also be on the insurance policy as a named insured

wait, really? even if we don't live under the same house?? if that's the case there is no point in adding her then

Jun 27th, 2018 12:21 pm

#17

waterbottleemo [OP]: Newbie; Apr 1, 2017; 87 posts; 13 upvotes

Jun 27th, 2018 12:21 pm

Xtrema wrote: ↑ $25K Mazda 3 has a 72 month finance payment of $344.

Depreciation is 20% 1st year and 35% after 3 years. So you won't really have positive equity on the car until around 2.5 years.

o thanks for the stats, I was actually looking for this information about the depreciation rate.
It's one main factor I'm considering before really buying this Mazda 3. Worries me some people say it doesn't have much resell value

Jun 27th, 2018 12:23 pm

#18

er34er34: Deal Fanatic; May 4, 2014; 5175 posts; 6964 upvotes; Toronto, ON

Jun 27th, 2018 12:23 pm

Make her sign a prenup over your new Mazda.

+4

Jun 27th, 2018 12:24 pm

#19

jerbhu: Member; Nov 26, 2014; 295 posts; 299 upvotes; Toronto, ON

Jun 27th, 2018 12:24 pm

waterbottleemo wrote: ↑ haha well she is pretty mature and fair. And I didn't talk to her yet, I want to make sure it is something I want before even talking to her.

wait, really? even if we don't live under the same house?? if that's the case there is no point in adding her then

Not exactly true. She only has to be on the Financial Papers. The ownership can solely by under your name, meaning the car is only licensed under your name.

Ex: I'm a co-signor on my In laws cars simply because I want the payments to come out of my account. The ownership is only on my in laws name, and they have their own insurance with their own broker. We do not live in the same household.

+1

Jun 27th, 2018 12:25 pm

#20

Xtrema: Deal Fanatic; Sep 1, 2004; 9677 posts; 9207 upvotes

Jun 27th, 2018 12:25 pm

waterbottleemo wrote: ↑ o thanks for the stats, I was actually looking for this information about the depreciation rate.
It's one main factor I'm considering before really buying this Mazda 3. Worries me some people say it doesn't have much resell value

My residual numbers are just general. Local factor has not been included. I'm sure it'll be less if you are from Ontario or Quebec, especially for a Mazda as the body tends to not hold up to the salting of road every year.

For real numbers, just check autotrader in the area and get a feel what they are selling for. For AB, the 35% depreciation after 3 years for Mazda 3 is about right for private sale, you probably will loose another 10% on trade-in value.

If you want even less commitment, lease. So the car isn't yours until you decides to buy it out in 3 years. If you and your GF got some nasty breakup and neither doesn't care about a huge credit hit, just let the car be repo'd.

Lease = GF/BF
Finance = Engaged
Cash = Married