What are the Legal Consequences of Being a Straw Buyer of a Motorcycle
I have a friend with a bad past including a felony & 3 DWI's. He is a great guy with a good heart and a very good friend and would never try to screw me as I've lent him money before and he's always paid me back because he makes good money.
He wants me to finance a motorcycle for him, put it in my name..insure it and let him drive it. He said he'd get his own insurance policy also and I believe him he just wants me to have it insured for legal reasons just in case he gets pulled over and in court wants evidence that the motorcycle isn't his and he was just borrowing it.
He currently has a breathalyzer in his car and a portable unit which he needs to blow in 5 times daily and he's pretty diligent and cant legally drive anything without a unit on it including a motorcycle.
I already told him no but he's a good buddy and giving me some sob stories about how he misses having a bike etc.
What kind of legal issues could I be looking at here? I'm assuming situations could possible arise among many others in regards to:
- he slams into someone going 100 mph and kills them. Bike is in my name, insured by me..I get wrapped up in the lawsuit?
- somehow I'm found out that I aided in this scheme for him and I could potentially be looking at charges of some kind?
Would there be a situation here where I could buy a bike and he could borrow it technically and I not be at any risk?
Thanks,
Re: Buddy with a Bad Past Let Borrow My Motorcycle
First at the minimum, if he wrecks the bike, sober or not, you're going to be out the full price of the motorcycle. When the insurance company finds out you fraudulently took out the policy, they're likely to deny coverage. Of course, when the lender finds out, they're not going to let you make payments, they'll want the money immediately.
You don't indicate what state you are in, but yes in some states it's illegal to allow those you know are not properly licensed to drive.
And yes as the owner of the motorcycle you can expect to be sued in the case he harms anybody (possibly even himself). Note, again, since you fraudulently got the insurance policy, they will decline to defend you against such a suit.
Re: Buddy with a Bad Past Let Borrow My Motorcycle
This is a bad idea all around and you are just setting yourself up to be screwed. Don't get involved in this. Want to help your buddy out, do it within the law.
Re: Buddy with a Bad Past Let Borrow My Motorcycle
Quote:
Quoting
SilentButDeadly
I have a friend with a bad past including a felony & 3 DWI's. He is a great guy with a good heart and a very good friend and would never try to screw me as I've lent him money before and he's always paid me back because he makes good money.
He wants me to finance a motorcycle for him, put it in my name..insure it and let him drive it. He said he'd get his own insurance policy also and I believe him he just wants me to have it insured for legal reasons just in case he gets pulled over and in court wants evidence that the motorcycle isn't his and he was just borrowing it.
He currently has a breathalyzer in his car and a portable unit which he needs to blow in 5 times daily and he's pretty diligent and cant legally drive anything without a unit on it including a motorcycle.
I already told him no but he's a good buddy and giving me some sob stories about how he misses having a bike etc.
What kind of legal issues could I be looking at here? I'm assuming situations could possible arise among many others in regards to:
- he slams into someone going 100 mph and kills them. Bike is in my name, insured by me..I get wrapped up in the lawsuit?
- somehow I'm found out that I aided in this scheme for him and I could potentially be looking at charges of some kind?
Would there be a situation here where I could buy a bike and he could borrow it technically and I not be at any risk?
Thanks,
Absolutely, positively, NO.