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Dimitry K., Esq.
Dimitry K., Esq., Attorney
Category: Legal
Satisfied Customers: 41221
Experience:  Multiple jurisdictions, specialize in business/contract disputes, estate creation and administration.
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Im thinking about purchasing a car and leasing it to a friend,

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I'm thinking about purchasing a car and leasing it to a friend, how would I go about doing that if possible? I want to make sure I am not liable if they get into an accident for what ever reason.

Thank you for your question. Please permit me to assist you with your concerns.

My apologies but state law would not absolve you of liability. Under US law, the person who is liable for damages in an accident is not just the operator of the vehicle, but primarily it is the owner of the vehicle, or the person under whose name that vehicle is titled. If your whole purpose is to make sure that you are personally not liable, then do not place the vehicle under your name--but if you do purchase a car under your name and lease it to your friend, regardless of what documentation he signs and what he promises to cover, you retain liability which means that should an accident take place, the third party accident victim (who was never a party to any of these agreements) can still go ahead and file suit directly against you.

Good luck.

Customer: replied 4 years ago.

What if I made a contract to sign the title over to them and stating the must sign the automobile back at the the end of lease?


Then this isn't a lease anymore. If you are yourself leasing a vehicle, then you cannot transfer title to someone else, as the title is held by the leasing company. As for transferring the vehicle to you, if the loan is under your name, nothing would hold the friend from refusing to pay you, or even holding the car (as it would lawfully be his). Beyond a contract you would have nothing tangible holding him to his obligations, which could make repossession and a suit for potential breach of contract fairly tough to prevail against. You would no longer have personal liability, I agree, but you may have difficulty getting your car back or even getting paid under this agreement.

Good luck.

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