There are several reasons you might give a vehicle as a gift.Maybe you are giving it to a family member who just received a driver's license.You don't want to sell your old vehicle if you are donating it to purchase a new one.The basic step in giving a vehicle is to transfer the title of ownership, but several details might make this task more complex.You need to own the vehicle in full.There are no liens on the vehicle.If you co-own the vehicle with another person, that person must be able to provide a signature, except in rare cases, such as death, at which point you might require the assistance of your local Probate Court.The title must be presented to the Department of Motor Vehicles in order to complete the transfer.
Step 1: Take the time to verify ownership.
The first thing you need to do is make sure you are the legal owner of the vehicle.You need the title to do that.You should have received the title from the dealer after you paid off your loans.The owner of the vehicle will be named in the title.If you have lost your title certificate, you need to get a new one from your state's Department of Motor Vehicles.There is a fee and procedure for each state.You can find a map of the U.S. with contact information for each state at http://www.dmv.org/replacing-a-lost-title.
Step 2: Satisfy the liens.
A liensholder is someone you borrowed money from.Their name will appear on the title if you still owe them money.If you want to give away the car, you have to pay off all of the loans and the lienholders must sign off on the title certificate.
Step 3: If there is an inheritance, involve the Probate Court.
If the owner is dead and the gift is an inheritance, you need to go to the court to get an order for the transfer.In some states, it is possible to file an affidavit with the Registry of Motor Vehicles in order to take possession.You have to check with your state law.If a married couple own a car and one dies and the other wants to give it away as a gift, the surviving individual can transfer the car alone.The title may need a copy of the death certificate.
Step 4: The back of the title has the transfer section on it.
The person giving the vehicle will be required to provide his or her signature, driver's license information and odometer information at the time of the gift.The buyer portion of the title must be filled out by the person receiving the car.If the title asks for the sale price, you will fill in the gift.Many title certificates specify that the writing must be done cleanly and clearly.A simple printing error could cause you to get a new title certificate and start over.
Step 5: To get liensholders to sign off, you have to get them.
If the liens have not yet given you something to show that the loans are satisfied, you will need to have them sign off on the title as satisfied in full.The lending department can be reached if your loan was from a dealer.Find your original loan paperwork if you obtained your loan from a bank.That will let you know who to contact for payoff information.
Step 6: There are additional gift requirements to check with the state's registry of motor vehicles.
There is no sales tax on gifts between family members at the time of the transfer.You should check the laws in your state.Some states may require proof of a family relationship for a gift to be tax-free.
Step 7: It is necessary to verify insurance for the recipient.
Before taking ownership of a car, a person will usually have to show that he or she is covered by insurance.The new owner of the car will have to get it insured and registered in order to drive it.The new owner's insurance company will usually give the owner a card or letter to prove their insurance.
Step 8: Check the requirements.
At the time of the transfer, some states will require the car to be inspected separately.Other states will not.You can check with the Department of Motor Vehicles in your state.In many states, you will need to take the car to a licensed inspection station to have a safety inspection, emissions test, or similar procedure.
Step 9: The documents need to be delivered to RMV.
The person receiving the gift will have to take the completed documents to the Registry of Motor Vehicles in most states.The original title will be turned in with all the signatures along with a fee.
Step 10: The state requires that you register the car.
This will be up to the new owner.All states have procedures in place to make sure that the car can be licensed and driven in the state.You can make an appointment ahead of time in many states.
Step 11: Wait until the new title arrives.
You will need a new title when you receive a gift vehicle.Within a couple weeks, theregistry will deliver this in your own name.To make sure the information is correct, check the new certificate of title when it arrives.You need this document to prove your ownership of the vehicle.Errors such as an incorrect middle initial could cause trouble for you in the future.Inform the Registry of Motor Vehicles if you see any mistakes.You will need to apply for a correction.