Gifting a Car in Louisiana
To gift a car in Louisiana, you’ll need to locate the title, fill out an application, and document the transfer as an authentic donation.
Written by Shannon Fitzgerald
Reviewed by Kathleen Flear
In order to gift a car in
Louisiana
, you’ll generally need to transfer the title, complete an application, and notarize a report of the donation as an authentic act before the new driver can hit the road. Giving someone the freedom of their very own vehicle can certainly be a momentous and heartwarming occasion. However, unlike most other gifts, putting a big bow on that shiny new SUV comes with a lot more paperwork and state regulations. Each state has its own rules for gifting vehicles, too, which can complicate matters.
But not to fret!
Jerry
, the car insurance
comparison and broker app, is here to help guide you through the nitty-gritty of gifting a vehicle in Louisiana. From forms you’ll need to fill out to transferring the title, we’ll take you through everything you’ll need to know about gifting a car in Louisiana. RECOMMENDED
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How to buy a car as a gift in Louisiana
If you’re planning to gift a vehicle straight from the dealership, it might be easiest to bring the recipient with you so that they can be involved in the financing process.
This is because you cannot gift a car if you have not yet paid off its loan—in this case, the loaner still owns the title. As long as there is a
lien
on your title, you won’t be able to transfer it. However, you can bring your recipient along with you in the buying process so that their name can be on the loan and title. That way, there won’t be a legal hangup to deal with if you are unable to pay for the car you want to gift in full, up front.
If you are able to pay for the car in full—you will need to fill out the seller’s portion on the back of the title and have the recipient fill out the buyer’s portion. You will mark the sales price as “gift” and complete the steps outlined below.
Key Takeaway If you need to take out a loan on the vehicle you want to gift, your best bet is to involve the recipient in the buying process so their name can be on the loan and title. You can’t gift a car unless you have the title in hand.
How to gift a used car in Louisiana
The easiest way to gift a car is to
transfer one that you already own
. As long as you have paid off the loan—or have managed to purchase the car in full, up front—you are ready to start the gift-giving process. Remember, the important first step in gifting a vehicle is to make sure you have the title in hand. Once this is settled, either by removing a lien or paying for a car in full, the title can then be transferred to your recipient.
Here are the steps you’ll need to take to gift a vehicle in Louisiana.
Discuss the future costs with your recipient
Purchasing a new car for someone—or handing one down—can lift a huge financial weight for the recipient. However, car ownership still comes with ongoing fees they’ll need to shoulder.
To start, Louisiana has a $68.50 title transfer fee along with a $20 to $82 license plate fee depending on the value of the vehicle. If the vehicle has a lien, there will additionally be a $10 to $15 lien recording fee. You will likely want to discuss with your recipient who will be covering these initial transfer costs.
Once the vehicle is officially under the possession of the new driver, there are more fees to consider, too. Louisiana requires a yearly smog test in some areas, which generally costs $18, and then there is car insurance, maintenance, and gas expenses to factor in as well.
Here are some anticipated costs of Louisiana car ownership you should discuss with your recipient:
Expense factor | Average cost |
|---|---|
Title transfer | $68.50 |
Lien recording | $10 to $15 |
Lien release | $68.50 |
Handling fee | $8 |
Smog test | $18 |
Insurance | $2,371 (liability only)
$3,712 (full coverage) per year |
Maintenance | $774.56 per year |
Fuel | $2,565 per year |
Notarize an Act of Donation form
While there may be no exchange of money in a gift transaction, you still need to record it legally. In Louisiana, this can be done by filling out and notarizing the
Act of Donation of a Movable
form. Doing so acts as legal protection for both the gift giver and the recipient. In some areas, you are required to have two witnesses to notarize this document, so be sure to
check with your local Office of Motor Vehicles (OMV
) for specific instructions.Transfer the title and register the vehicle
Transferring the vehicle title to the gift recipient is the most official step in the gift exchange as it legally certifies that the recipient is the new owner.
To transfer a title, both you and the recipient will want to prepare these documents to bring to your local OMV.
- The current title—signed by the gift-giver as the “seller” and notarized
- If the vehicle is not registered you will need to bring:The manufacturer’s statement of originA notarized dealer’s invoiceAn Odometer Disclosure Statement
- A notarized lien release (if applicable)—you will need to discuss this with your loaner
- Proof of identification
- Method of payment for the fees
Prior to arriving at the OMV, you will additionally need to submit a
Notice of Transfer of Vehicle
on the OMV’s website. Once the title transfer has been completed, the recipient can immediately register the vehicle with the same OMV clerk. While the title transfer acts as proof of the ownership change, registration will make it legal for the recipient to drive the vehicle on the road.
In Louisiana, the gift giver will need to surrender the vehicle’s license plates to the OMV. The recipient will receive new plates under their name or they can transfer plates they already own for a $3 fee. If the vehicle is a truck or trailer, the recipient may keep the original owner’s plates.
Key Takeaway Transferring the title and registering the vehicle under the recipient’s name is the most official step in the gift-giving process. Both you and the recipient will need to compile documents, prepare payment, and fill out some forms. The recipient will need to bring them to the OMV.
Purchase Louisiana liability insurance—or full coverage
Lastly, you need to have proof that you meet
Louisiana’s minimum car insurance requirements
before your recipient can legally drive the vehicle. Once you have secured this coverage—and transferred the title and registration—the recipient is finally free to hit the road with their generous gift! MORE: Louisiana Electric Vehicle Incentives
How to find affordable car insurance in Louisiana
Whether you decide to add more coverage to your Louisiana policy or you’re just aiming to secure the minimum liability coverage,
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Do you have to pay taxes on a gifted car in Louisiana?
Generally, if you receive a gifted car in Louisiana, you are not required to pay a sales tax on it. However, if the value of the car exceeds $15,000 the recipient may be responsible for up to 4% to 9% of your vehicle’s assessed value.
Is it better to gift a car or sell it for $1 in Louisiana?
It’s always better to gift a car as this is both the legitimate method to transfer ownership of a gifted vehicle and it may save the recipient some hefty sales tax costs. Typically, the OMV charges 4% to 9% of the vehicle’s fair market value on a used car sales transaction—not the $1 selling price.
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