legal to lease my car to my daughter

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nose

Well-Known Member
27 November 2015
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Can I legally lease my car to my daughter on a long term basis ?
 

Rob Legat - SBPL

Lawyer
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16 February 2017
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If you are the sole owner of the vehicle and it is not encumbered, yes you can. If you're not the sole owner, all owners must agree. If the car in encumbered it won't be illegal, but you'll undoubtedly be in breach of contract.

Your daughter will need to arrange her own insurance.
 

nose

Well-Known Member
27 November 2015
67
1
199
If you are the sole owner of the vehicle and it is not encumbered, yes you can. If you're not the sole owner, all owners must agree. If the car in encumbered it won't be illegal, but you'll undoubtedly be in breach of contract.

Your daughter will need to arrange her own insurance.
Would I need to register it as business use rather personal? (NSW).
Why does she have to organise the insurance instead of me ?The insurance is for the vehicle not the person
 

Rob Legat - SBPL

Lawyer
LawConnect (LawTap) Verified
16 February 2017
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Gold Coast, Queensland
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The use is what she will be using it for, not the fact that it is leased.

You may find it easier for her to organise the insurance. Unless you get specialised fleet insurance (which is probably uneconomical for one vehicle) you may find that an insurer will restrict or not offer you insurance because the car is being hired to a third party. However, your daughter can get insurance on the vehicle and nominate you as an interested party.