Is Straw Buying Cars Illegal File

: Most auto loan contracts explicitly require the borrower to be the primary driver of the vehicle. Failing to disclose that the vehicle is actually for someone else is a form of misrepresentation or deception against the lender .

: It is generally considered illegal for dealers to initiate straw purchases, such as by convincing a co-signer to be the sole purchaser to hide the primary driver's poor credit from the bank. Potential Consequences

: If the intended driver defaults on payments, the straw buyer is solely responsible for the debt, which can ruin their credit score. What Is Legal