How is it different from parents paying a cash allowance ("gift") to the kid, which he uses to pay his car expenses?  Substance over form -- it's still a gift, if they pay it directly.  If the kid is a minor, they have an obligation to support him, but that doesn't include paying his business expenses.  

If the kid has the job to make money to pay his tuition, but he's still a dependent, who gets to claim the tax credit?