Giving or receiving a car as a gift is a generous and exciting gesture. However, before hitting the road, there are a few important steps to take to make sure the vehicle is properly registered.

Whether the gift is from a family member or a friend, understanding how to handle the paperwork will help you avoid delays and penalties. Here are some simple tips to guide you through the process of registering a gifted car.

Gather the Necessary Documents

The first step in registering a gifted vehicle is to collect all the required documents. The most important item is the vehicle title. The person giving the car must sign the title and clearly mark that the car is a gift.

Some states require a bill of sale, even for gifted vehicles, so it is a good idea to check your local regulations. You will also need a valid ID, proof of insurance, and possibly an odometer disclosure statement if the vehicle is less than 10 years old. 

Check for Gift Tax and Fees

Even though the vehicle is a gift, you may still be responsible for certain taxes and fees. Some states require you to pay a small transfer or title fee when changing ownership.

Others may apply a gift tax depending on the value of the car and your relationship with the person giving it. It’s always best to contact your local DMV or state revenue office to find out exactly what taxes apply. 

Complete the Transfer of Ownership

After gathering your documents and checking for any taxes, the next step is to transfer ownership officially. The giver must sign over the title to the new owner. Make sure that all sections on the title are filled out correctly, including names, addresses, and signatures.

Mistakes or missing information can delay the registration process. In states like New York, there are specific rules you must follow when completing a car transfer ownership in New York. For example, both parties might need to visit the DMV together to ensure all paperwork is accurate. 

Get the Vehicle Insured and Inspected

Before registering the car, you’ll need proof of valid insurance. Contact your insurance provider and add the gifted vehicle to your policy. This step is required in almost every state before you can receive license plates or registration tags.

Some states also require a safety inspection or emissions test before the car can be registered. Schedule this appointment early to avoid delays. If the car does not pass the inspection, you may need to make repairs before it can be legally registered and driven.

Submit the Registration Application

Once everything is in order, you can submit your registration application. You’ll need to visit your local DMV or submit the paperwork online if your state offers that option.

Bring all required documents, including the signed title, proof of insurance, ID, and any inspection or tax receipts. When the registration is complete, you’ll receive your new license plates, registration card, and, in some cases, a new title in your name. 

Conclusion

Registering a gifted vehicle doesn’t have to be stressful. By staying organized and understanding your state’s rules, you can handle the process with ease.

Gather your documents, confirm any taxes, transfer ownership properly, and make sure the car is insured and inspected.

Following these steps will help ensure that your gifted vehicle is legally registered and ready for the road in no time.

If you’d like to learn more, check out more articles on our blog.