What Is a Car Straw Purchase?

A straw purchase of a car means that the individual who actually buys the car is not the person who is going to use the vehicle. Straw purchasers are given the money to pay for cars and hand them over the to the real buyers after the transactions.

This process is often part of illegal activities. For example, sometimes straw buyers also register the cars under their own names and then sign over the titles to the money sources. These cars, which are often luxury models, are then exported as used vehicles. Pre-owned cars are exportable under the rules of U.S. Customs. However, straw purchases require misrepresentation and are against the law.