Given the following scenario for my wife, what should I be watching out for?
Specific to the United States - her father, along with his friend, bought a car to give to her, with traditional 72-month financing. His friend was the primary applicant on the loan, and he was the co-applicant. They have not and do not ever drive the car, only my wife. His friend was involved to help build up his own credit history (not my idea, and I wouldn't have approved of this, but this was before my time).
The car registration is in her dad's friend's name, but I am paying the registration each year. Her dad is paying the bill on the car loan as a gift to her.
I have car insurance for both of us on the car, under our names, and pay that bill myself - it's a good policy, definitely enough coverage to satisfy the terms of the car loan.
Are there any issues here? I've read that the owner has to actually be insured, but I don't know if that's true. I also don't know if there's any issue with driving a car that someone else owns and registered, without any specific written permission to do so.
I know one solution would be that I can buy the car from him, so he can pay off his loan and I can take out a new loan and registration in my name, with her dad continuing to pay the bill. But if everything is kosher, I'm content leaving things as-is.