Man Wants To Buy 2026 Toyota For His Sister-In-Law. Then He Realizes He Could Get Sued—So He Finds A Creative Loophole

If you’ve got enough money to do so, there’s nothing quite like giving a car as a gift. After all, in most places in America, cars are essential.

As public transportation outside of cities is limited, many find themselves relying on personal vehicles. According to the U.S. Census Bureau, almost 70% of workers drove to work alone in 2024. The percentage of workers utilizing public transit was less than 4%.

Because of this, if something happens to your car and you can’t afford to fix it, you’re often out of luck. This desperate situation can result in a lot of bad things: driving an unsafe vehicle, sketchy repairs that cost more in the long-term, or other problems.

So if someone has a car issue, getting them a new one can be a joyous surprise.

But what if someone goes wrong with the car? That’s what some internet users are wondering after a recent video.

What Happened During This Car Purchase?

Across two videos, TikTok user Kevin Kunze (@ecomsidehustlecars) documents the experience of buying his sister-in-law a vehicle after her car broke down.

“Texted my little sister-in-law last night and I was like, ‘Come to our house at 9 AM,’” Kunze recalls in the first video. “Didn't ask a single question. Just showed up.”

“We're gonna go buy her a car. I don't think that she knows,” he continues.

In the second video, Kunze shows himself at Vandergriff Toyota in Arlington, Texas. Kunze’s sister-in-law can be seen signing paperwork.

“We just bought a car,” Kunze states.

The TikToker then says that, even though he is paying for the car, she is signing all of the paperwork and the car is in her name.

“That way I don't get sued,” he shares.

Kunze says she chose a 2026 Toyota Corolla Cross Hybrid XSE, which she chose for its good gas mileage. In a comment, he adds that he made the purchase in cash.

Could He Be At Fault For An Accident She Causes?

Kunze says the car is in his sister-in-law’s name so he doesn’t “get sued.” But does providing someone with the cash to buy a car, then having them buy the car in their name really insulate you from potential legal issues?

Depending on the specific circumstances of the car’s purchase and use, he’s likely correct that he’s protected from a lawsuit. In Texas, if he simply gives her the money, but she owns the title, insures it, and controls how the car is used, his legal claims to the vehicle—and his liability in the event of an accident—are significantly reduced. 

The exception would be if the car was in her name on paper, but controlled by him in other ways. For example, if he paid for it, kept practical control over it, insured it, stored it, dictated who could drive it, and/or simply used her name as a paper shield, then a legal argument could be made that he could be held liable in the event of an accident.

What Are The Tax Implications?

Some may wonder if there are any tax implications for the sister-in-law by receiving a car as a gift.

For the buyer of the car, the taxes are simply limited to the normal taxes that come with a car purchase. In Texas, this is a sales tax of 6.25%.

If the buyer receives the money for the car purchase as a gift, they are likely not required to pay any tax on that money.

However, if a Texas-based family member buys a car, then transfers it to another family member, the recipient is not required to pay a motor vehicle tax. Instead, the recipient is only required to pay a $10 gift tax.

In Kunze’s situation, it’s likely that his sister will not need to pay a gift tax, only the taxes on the car. This may already be covered by Kunze’s cash payment.

The Creator Responds

In an email to Motor1, Kunze explained the reasoning behind his purchasing decisions.

“I have purchased 11 cars for other people—family members or random people from my following who were struggling financially and had reached out to me,” he wrote. “Only ever talked to my attorney about liability involved with buying cars for non-family members. His advice was to buy the car directly through a dealership. I pay, and the owner signs.”

He then recounted the day of the purchase shown in the video.

“My sister-in-law had no idea she was getting a car until we showed up at the dealership,” he recalled. “I had my insurance agent set up all of her insurance for her (on her own policy) which she will pay every month. Car is fully covered for maintenance, tires popping, oil changes, something breaks on the car, etc. for the next 3 years, so not really much to worry about on that side.”

As for what he meant by “getting sued,” he offered an explanation.

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“An 18-year-old girl who makes $10K a year and has no money, assets or large insurance policies isn’t worth suing if she were to get in an accident that was her fault. I have a ton of money and a $5 million insurance policy, so suing me would be an easy win,” he said. “If the car was in my name or she was on my insurance, they can come after me/my insurance. Since the car isn’t in my name, I carry no liability.”

“From a legal perspective, I’m untouchable. Unless this was a case of ‘Negligent Entrustment,’ which would mean I had reasonable suspicion that she wasn’t allowed to drive, can’t legally drive or is a known danger on the road (which obviously isn’t accurate for this situation),” he continued. “Other than that, my involvement ends the day the car is purchased since I wired for the car in full.”

 

 

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