Gifting a car to a family member is a great way to pass down a family vehicle, surprise someone for their birthday, or celebrate an important milestone. Every state DMV has different laws and fees concerning title transfers, so here’s how to gift a car to a relative in Englewood, NJ.
A Free and Clear Vehicle Title
A free and clear vehicle title means that you own the car and have no outstanding loans or liens on the title. If the title has a lienholder from the original purchase, you’ll need to get a letter from the bank stating that the loan is settled.
Transferring the Title
New Jersey has a $60 title transfer fee, with an additional $4.50 if the vehicle has an existing and up-to-date registration. If the car isn’t registered, the giftee will need to purchase registration and ensure the vehicle is inspected, which can be an extra $100-$150, depending on the shop you go to. Make sure you and your relative are prepared to pay the additional costs.
New Jersey state law also states that all cars must be insured, so there will be an additional fee depending on whether you keep the insurance in your name or transfer it to your family member. A quick tip: if your family member is a new driver, it will often be cheaper to keep the insurance in your name while adding them as a driver on the policy.
Gifting a New Car
Believe it or not, you can gift a brand-new car to a family member. We suggest bringing the family member with you to the dealership so they can pick out the vehicle they want and be involved in the financial process. Bringing them with you will also help avoid duplicate fees and extra paperwork.
If you can’t pay for the car in cash and need to take out a vehicle loan, you can cosign your family member onto the car while promising to take full monetary responsibility. This way, the vehicle is in both your names and the giftee’s name is also on the title and registration.
Gifting a Used Car
Used cars are typically easier to buy outright due to their quick depreciation. Gifting a used car enables you to surprise your family member or pass down a car that’s been in the family. Otherwise, the steps are the same as gifting any other vehicle! You’ll only need to worry about the title and registration paperwork.
Gifting a car doesn’t have to be complicated and now that you know the right processes as a New Jersey resident, click here for more helpful NJ related blogs! Whether you want to gift a new or a used car, come check out DARCARS Lexus of Englewood today, and we’ll walk you through our inventory to find the perfect vehicle for your family member.
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