Gifting a Car in Georgia
You can gift a car to an immediate family member in Georgia if you transfer the title and complete a Declaration of Immediate Family Form.
Written by Olivia Rose
Reviewed by Kathleen Flear
When you gift a car in Georgia, you can avoid some of the taxes and fees associated with privately selling a car. But, you’ll need to give it to an immediate family member and
transfer the title
to their name. You’ll also need to complete a Declaration of Immediate Family Form (Form MV-16). You’d be hard-pressed to find someone who wouldn’t be happy receiving a car as a gift. But while gifting a car might be one of the highest forms of generosity, it’s not as simple as your everyday birthday or Christmas gift.
States have different regulations for how you can gift a car—and they’re not always straightforward. But
Jerry
has you covered with the ins and outs for gifting a car in Georgia: how to do it, things to avoid, and the benefits of gifting a car. We can even help you find the best car insurance rates in Georgia
!How to buy a car as a gift in Georgia
If you want to buy a new car to give as a gift, you’re best off bringing the recipient to the
dealership
with you. This way, they can be involved with the shopping and financing for the new car. If you cannot pay fully up front for the new car, you’ll need to wait until all your car loans are paid off to transfer the title to your recipient. By bringing them with you to the dealership, you ensure your finances stay up to snuff—and you’re better able to choose the exact car your recipient wants.
Key Takeaway Bringing the recipient with you to the dealership is a great idea if you want their input when choosing a car—and if you plan to take time paying off car loans for the vehicle.
How to gift a used car in Georgia
For a full-send surprise gift, you’re best off gifting a car you already own to your recipient. In Georgia, you can gift a car to an immediate family member if all the loans are paid off (or if you bought the car outright and have no loans).
Whether it’s a surprise birthday gift or simply a means of helping out a loved one, you’ll need to follow Georgia’s laws for gifting a car. Here are the steps you’ll need to follow.
Discuss the terms of the gift with your recipient
Gifting a car in Georgia comes with associated fees. You and the recipient will need to decide who pays which fees.
In Georgia, either the gifter or recipient will need to pay the $18 vehicle title transfer fee, a $20 license plate fee, and the registration fee and taxes. The gifted vehicle will also need smog certification and a vehicle inspection before the title can be legally transferred.
Depending on the circumstances of the gift, you might also want to discuss who will pay for car insurance,
maintenance
, fuel, and other car expenses. Remember that car insurance is legally required in Georgia (as in most states), no matter how often the driver plans to use the vehicle. Record the gift with a bill of sale
Yes, even for a gift, you need to fill out a bill of sale.
Though it isn’t required in all states, it’s always a good idea to write a bill of sale so that you have a paper trail of the gift—and avoid potential confusion down the line.
Transfer the vehicle title
The vehicle title transfer is the process that legally transfers ownership of the car to your giftee.
In Georgia, you can start the process
online
. You and your giftee will need to complete and sign an MV-1 Title/Tag Application before visiting the county tag office. Here’s a checklist of what you will need to complete the title transfer process:
- MV-1 Title/Tag Application (completed and signed by both parties)
- Emission Inspection Certificate (if applicable)
- Original vehicle title
- Payment of all fees and taxes ($20 license plate fee, $18 title fee, Title Ad Valorem Tax, and any penalties due)
Note that the title must be in your name if you are the one planning to gift the car.
Purchase Georgia liability insurance—or full coverage
Georgia’s minimum car insurance requirements
require all drivers to hold liability coverage
. This coverage protects you when you cause a collision by paying for the damage to other drivers and their cars. But, you might want to keep yourself better protected with
full-coverage insurance
, which helps pay for damages to your car—even when you are at fault in a collision. Once your giftee has met Georgia’s requirements for car insurance coverage, they will be good to drive!
How to find affordable car insurance in Georgia
Jerry is the one-stop-shop for finding a great deal on car insurance—whether it’s for yourself or a loved one.
Once you download the Jerry app and answer a few questions about your driving profile, you’ll get to shop through curated quotes from some of the nation’s top insurance providers.
Jerry keeps car insurance shopping simple and easy. We won’t ever sell your personal information or send you spam, and we’ll only call you if you want to talk to one of our expert agents to figure out your car insurance options (or if you want to chat about the movie you saw over the weekend—we’re all ears).
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Do you have to pay taxes on a gifted car in Georgia?
Yes, you may have to pay taxes on your gifted car in Georgia. You and your giftee should discuss who is responsible for paying taxes when you transfer the vehicle title.
Who can you gift a car to in Georgia?
The state of Georgia allows you to gift a car to an immediate family member.
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