Change of ownership - tax implications

[Gaz{M}]

My dad is kindly loaning me his car for a year. Since I get free company provided insurance, but only for a vehicle in my name, how can we change the ownership to me?

Are there tax implications in doing this, since technically I'm gaining an asset.

Any advice?

 

[Pitbull]

My dad is kindly loaning me his car for a year. Since I get better insurance with the vehicle in my name, how can we change the ownership to me?

Are there tax implications in doing this, since technically I'm gaining an asset.

Any advice?

Why do you need to change ownership for insurance purposes?

 

[ALFAHOLIC]

I've heard this done countless times...me and my dad wanted to do it as well, as a 147 is considered a fast sports car and insurance is...get this....R2500!

If he still owes money on the car I'm afraid it can't be done...however if the car is paid off, all you need is a pink form, and you sign here, he signs there kinda thing...call traffic centre....or erm..no, go see them rather.

 

[Pitbull]

I've heard this done countless times...me and my dad wanted to do it as well, as a 147 is considered a fast sports car and insurance is...get this....R2500!

If he still owes money on the car I'm afraid it can't be done...however if the car is paid off, all you need is a pink form, and you sign here, he signs there kinda thing...call traffic centre....or erm..no, go see them rather.

Still doesn't make any sense what so ever.

Insurance is not based on who's name the car is in. It's based on the driver of said car. Even if the car is in your dad's name but your the regular driver you will still pay R 2500. Unless you are lying on your insurance application

 

[ALFAHOLIC]

Still doesn't make any sense what so ever.

Insurance is not based on who's name the car is in. It's based on the driver of said car. Even if the car is in your dad's name but your the regular driver you will still pay R 2500. Unless you are lying on your insurance application

No man...

I'm 23, and me dad is 47...so the age difference is majour! Did a comparison...my dad will get the insurance for R580 p/m instead of the R2500 p/m in my case...

Many people do it for insurance as its now on my dad's name so insurance is cheaper...But maybe the author of the thread should give more info on what exactly he intends to do...but you now understand my argument?

 

[Pitbull]

No man...

I'm 23, and me dad is 47...so the age difference is majour! Did a comparison...my dad will get the insurance for R580 p/m instead of the R2500 p/m in my case...

Many people do it for insurance as its now on my dad's name so insurance is cheaper...But maybe the author of the thread should give more info on what exactly he intends to do...but you now understand my argument?

But then that means you are not listed as the regular driver of the car. Which is lying. And good luck with the claim if you should smash the car

If the car is on your dad's name and you are listed as the regular driver you will still pay R 2500. If the car is on your name but your dad is the regular driver it should be less.

Just remember, trying to be smart most of the times comes back to show you that you are not as smart as you think. (When the time comes that you need to claim that is )

 

[ALFAHOLIC]

LOL no mate I'm not trying to be smart man...I'm not doing it...I'm not listed...I have the car in my name I just gave the example to make more sense...

But aparently you can be listed as a frequent driver, and its not so much as we think, my wife's car is in her dad's name..still need to change that now that we speak of it...and so is the insurance...she is listed as frequent driver at first for woman...lol...R400p/m bru!

 

[gifs]

The premium is based on the driver of the vehicle, not the owner.

They don't even ask who the owner of the vehicle is.

 

[Fazda]

Just to get back to the original question.............

There is NO tax implication when changing the car into your name...end of story.

 

[Gaz{M}]

Ok, let me be more specific.

My company gives me free insurance if the vehicle is in my name. So it is all above board

But currently it is in HIS name. Make sense now?

Thanks for the info!

 

[rorz0r]

That's what the insurance companies tell you however I know of quite a few people who are noted as regular and only driver on a parents policy and it's a lot cheaper than if they were to get their own policy.

 

[Pitbull]

Just to get back to the original question.............

There is NO tax implication when changing the car into your name...end of story.

Ok, let me be more specific.

My company gives me free insurance if the vehicle is in my name. So it is all above board

But currently it is in HIS name. Make sense now?

Thanks for the info!

Well there has been a change in the law regarding the selling of houses and cars. Selling a car does have tax implications. However there needs to be a cash trail of said purchase/sale. If you just change it to your name without actually buying/selling it then there is no implication no. If however you are buying the car from your dad prior to the registration this needs to be declared by your dad on his next tax return.

 

[Gaz{M}]

Great, thanks. No money is involved so that means we are sorted.