Straw Purchase


Straw Purchase

In auto sales, the purchase of a vehicle for another person. In a straw purchase, the official owner assumes all liability and pays all expenses, but does not ordinarily use the car. A straw purchase may occur if the driver has little money or insufficient credit history to buy the car on his/her own. For example, a mother may buy a car in her name with the intention of letting her 16-year-old son drive it.