Gifting a Car in Indiana
As long as you’ve got the vehicle title, you can gift a car in Indiana by filling out the seller’s portion of the transfer section of the title.
Written by Ethan Moser
Reviewed by Kathleen Flear
While gifting a car in Indiana can help you avoid the hassle and fees of a private vehicle sale, you’ll still need to pay for things like the title transfer and registration fees, as well as fill out all the correct paperwork to certify that the vehicle is a gift.
Whether it's new or used, gifting someone a car is an incredibly generous gesture that will leave you and the recipient smiling. However, there’s a lot that goes into gifting a car beyond handing over the keys, especially since each state has its own set of rules and regulations when it comes to vehicle gifting.
Here to walk you through the steps of gifting a car is
car insurance
comparison app Jerry
. We’ve created a how-to guide on gifting a car in Indiana that’ll tell you everything you need to know about the process, including mistakes to avoid and the benefits of gifting over selling. Plus, we'll cover how you can find the best Indiana car insurance
without any hassles.How to buy a car as a gift in Indiana
If you aren’t planning to surprise the recipient with a gifted vehicle, we suggest bringing them with you to the dealership. This way, they can be involved in the buying process to make sure the chosen vehicle is not only to their liking but also within their budget for things like insurance.
The financing details of the vehicle’s purchase are also an important factor to consider with the recipient because you can only gift a car if there are no
liens
on the vehicle. This means, in order to transfer the title from your name to the recipient's name, all loans on the car will need to have been paid in full. If you cannot afford to buy a car for the recipient in cash, the best move is probably to make them part of the
car-buying process
. You can still take financial responsibility for paying off the car loan, but both of your names can be listed on the associated documents, including the title and registration. Key Takeaway In order to transfer a vehicle as a gift, you’ll need the title in hand. Because of this, bringing the recipient along to the dealership is a great idea.
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How to gift a used car in Indiana
In the case that you want to surprise your recipient with a car without them knowing, your best bet is to
transfer a vehicle you already own
.
This doesn’t mean you need to gift someone a car from 1990 with 300,000 miles on it. Because cars depreciate quickly, you are more likely to be able to purchase a gently used, couple-year-old vehicle in cash than a brand new model. Or maybe you plan to gift your old vehicle as a philanthropic act to help out a loved one and buy something new for yourself. Either way, a car that’s paid off will have a free and clear title and will be able to be transferred to the new owner with ease.
Here’s what you’ll need to do to legally gift a car in Indiana.
Negotiate the terms of the gift with your recipient
Even if you’re organizing a surprise reveal for your gifted vehicle, you’ll still need to sit down with the recipient after the excitement dies down to discuss the gift. This will involve sorting out title transfer fees as well as the regular costs of car ownership, such as insurance, maintenance, repairs, fuel, and more.
A title transfer in Indiana requires a $15 retitling fee when gifting a car, a $15 duplicate title fee, and a $25 expedited vehicle title service fee. If the recipient fails to retitle the vehicle within 45 days, they will also face a $30 late fee. You can call your local DMV to verify the exact cost of giving a car as a gift.
You’ll need to talk to the giftee about who is going to be responsible for what. If the vehicle seems like it is going to be a financial burden on the recipient, you may want to reconsider.
Here’s a table of the costs you should consider.
Cost | Indiana average |
|---|---|
Title transfer | $15 |
Registration fee | $21 |
Insurance | $1,441 (liability only), $1,639 (full coverage) per year |
Maintenance | $1,188 per year |
Fuel | $3,000 per year |
Record the gift with a bill of sale
Even when gifting a car, you’ll still need to complete a bill of sale. Although there might not be a monetary exchange, an Indiana bill of sale serves as a legal record of your transaction. Holding onto a copy of your bill of sale can help you avoid any potential legal complications later on.
The bill of sale must be signed by both you and your recipient, certifying that you’ve mutually agreed to the terms of the gift.
Transfer the vehicle title
In order to actually complete the gifting process, you’ll need to transfer the vehicle’s title out of your name and into the recipient’s name. By doing so, you’ll officially be giving the recipient legal ownership rights to the vehicle.
You will need to fill out the seller’s portion of the transfer section on your car’s title, while your giftee fills out the buyer’s portion. The recipient will then need to visit their local Indiana BMV office with the completed title transfer form, proof of Indiana residency, proof of Social Security number, as well as proof of vehicle inspection. The $15 title transfer fee will be due at this time, too.
In Indiana, note that any vehicle transfer is tax-exempt.
The recipient must bring all the necessary documents and payment for any additional fees to their local Indiana BMV within 45 days of the gift in order to avoid a $30 late fee.
Purchase Indiana liability insurance—or full coverage
Even if you’re leaving the cost of insurance payments up to your giftee, it is important to make sure that your gifted car has insurance that adheres to
Indiana car insurance laws
. Once your vehicle is insured, the gifting process is complete and your giftee is free to take to the streets in their new car!“Jerryquoted me a price that saved me almost $4000 a year in Indiana! I definitely recommend Jerry.” —Patricia B.
How to find affordable car insurance in Indiana
Whether you're buying insurance for yourself or for your giftee, saving money on your car insurance policy without sacrificing necessary coverage has never been easier with
Jerry
. Saving with Jerry is simple: just download the app, enter your information, and Jerry scans competitive quotes from more than 55 of the top insurance providers in less than 45 seconds, delivering the best car insurance deals straight to you.
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Do you have to pay taxes on a gifted car in Indiana?
No! Under Indiana law, you’re not required to pay tax on a vehicle you receive as a gift.
Is it better to gift a car or sell it for $1 in Indiana?
There’s a reason why the Indiana BMV has a process for gifting vehicles. If you’re not planning on selling your car at a fair market price, gifting it is the safest and most legitimate way to transfer your vehicle’s title to another owner.
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