Giving a car as a gift sounds like the kind of move that earns you a standing ovation at Thanksgiving dinner. But one generous TikToker discovered there is a real legal wrinkle that comes with handing someone the keys to a brand-new vehicle, and the way he handled it is worth paying attention to.
A man named Kevin Kunze, who goes by @ecomsidehustlecars on TikTok, recently documented the process of buying his sister-in-law a new car after her own vehicle broke down. The gesture itself is straightforward enough. The mechanics behind it, though, turned out to require a little strategic thinking. Kunze had done this kind of thing before, having purchased vehicles for family members and followers in need, and he had clearly thought through what it means to write a big check for a car that someone else will be driving.
He showed up at Vandergriff Toyota in Arlington, Texas, with his sister-in-law in tow, and she reportedly had no idea why she was there. She picked out a 2026 Toyota Corolla Cross Hybrid XSE, which she selected for its fuel economy, and Kunze paid for it in cash. The key detail, though, was that all the paperwork went in her name. Not his. That distinction is not just administrative tidying, as it turns out to be the entire point.
Kunze was candid about his reasoning: if the car were in his name or tied to his insurance, and she were to cause an accident, he would be a much more attractive target for a lawsuit than she would. He has significant assets and a $5 million insurance policy. She is a young woman with a modest income. In litigation terms, that is a meaningful difference, and Kunze clearly understood which side of it he wanted to be on.
What the Law Actually Says About Third-Party Car Purchases
@ecomsidehustlecarsShoutout to Vandergriff Toyota in Arlington
The concept Kunze was navigating is called owner liability, and it varies by state. In most states, if your name is on the title and someone gets hurt in that vehicle, there is a reasonable argument that you share responsibility for whatever happens. Texas, where this purchase took place, is fairly clear that liability follows ownership and control. If you own the car, register it, insure it, and decide who drives it, you are the one on the hook when things go sideways.
The exception that could trip up even a well-structured arrangement like Kunze’s is a doctrine called negligent entrustment. Under that legal theory, if you knowingly hand a vehicle over to someone who is unfit to drive, you can still face liability regardless of whose name is on the title. An unlicensed driver, someone with a documented history of reckless driving, or a person you had specific reason to believe was impaired would all qualify. Kunze acknowledged this himself, noting that none of those factors apply in his sister-in-law’s case.
The Tax Side of the Transaction
For anyone considering something similar, the tax picture is worth understanding. In Texas, standard vehicle sales tax comes in at 6.25 percent, and that applies to any normal purchase at a dealership. If someone gives another person money to buy a car, the recipient generally does not owe federal income tax on a cash gift, though there are annual gift tax exclusion thresholds to be aware of.
There is also a separate Texas-specific provision worth knowing: if a family member buys a car and then transfers the title to another family member, the recipient only owes a $10 gift tax rather than the full motor vehicle tax. In Kunze’s case, since the purchase was made directly in his sister-in-law’s name, the standard tax structure applied, and her costs were most likely covered as part of his cash payment.
Kunze’s Track Record and His Attorney’s Advice
This was not Kunze’s first trip down this road. He says he has now purchased 11 vehicles for other people, a mix of family members and followers who reached out to him in financial difficulty. His attorney’s guidance on these transactions has been consistent: go through a dealership, pay directly, and make sure the recipient is the one signing the paperwork and taking ownership. That structure keeps the transaction clean and the liability clear.
He also made sure his sister-in-law had her own insurance policy set up before she drove off the lot, handled through his insurance agent but entirely in her name. The car also comes with three years of coverage for maintenance, tires, and mechanical issues, meaning the practical burden on her going forward is manageable. It is a thoughtful arrangement, and the legal scaffolding behind it reflects experience rather than luck.
What This Means If You Are Thinking About Doing the Same
Buying a car for someone is a genuinely meaningful act. It is also the kind of transaction that can go wrong in ways people rarely anticipate when they are caught up in the generosity of the moment. The lesson from Kunze’s experience is not that you should not do it, but that you should do it correctly.
The core principle is simple: if you are not going to be the one driving the vehicle, you probably should not be the one whose name is on the title, whose insurance is attached to it, or who retains any practical control over it. Ownership and liability travel together. Structure the purchase so that the person receiving the car is the one taking on the legal responsibilities that come with it, and make sure they have the insurance coverage to back that up. A conversation with an attorney before writing the check, especially for larger purchases, is worth the time. Generosity is admirable. Being sued for it is not.