Gifting a Car in Missouri
Gifting a car in Missouri involves filling out a title transfer, emissions inspection, safety inspection, and bill of sale form.
Written by Joshua Levy
Reviewed by Kathleen Flear
Gifting a car is a big gesture to show someone how much you care about them. But the legal process for gifting cars in
Missouri
can be complicated. Before you give a car as a gift, you’ll need to make sure you file the right paperwork and that your car passes the required inspections.While Missouri does not require any state or local gift tax, you may need to report the gift to the IRS if its value exceeds $15,000. That said, you should read up on vehicle gifting before you go out and buy a new car—there may be vital information you’re missing.
We know that legally gifting a car can be a complex process. That’s why the
car insurance
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has put together this article with everything you need to know about gifting a car in Missouri. Here, we’ll cover fees you’ll need to pay, mistakes you should avoid, and more.RECOMMENDED
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How to buy a car as a gift in Missouri
The easiest way to gift a car in Missouri is to bring the recipient to a dealership and have them sign for the car. You can always pay for the vehicle yourself, but having the recipient sign for the car could save you piles of paperwork.
Of course, if you’d rather keep the whole thing a surprise, you can always buy the car yourself and transfer it to the recipient. When you buy a car as a gift in Missouri, it’s actually no different than buying a car for yourself. But you’ll need to have the car inspected and
transfer the title
before you can officially give it away. Keep in mind that you can’t transfer cars with
liens
to new owners. So before gifting the car, you’ll need to ensure it’s completely paid off and lien-free.Key Takeaway The easiest way to gift a car is to involve the recipient in the car-buying process, but you can always surprise them if you’re willing to do some extra paperwork.
Transferring your gift car in Missouri
If you choose to buy the car yourself and present it in a big reveal later, you’ll need to go through a transfer process to make sure everything’s legal. Plus, you’ll need to take a few steps to ensure the exchange goes smoothly.
While some states require as little as a title transfer to gift a car, Missouri requires the following documents:
Split payments with your recipient
It goes without saying that car ownership is expensive. Aside from the upfront purchase price, car owners need to pay for gas, maintenance, repairs, and registration. That said, you should make sure your gift recipient is in a sound financial position to own a car before you gift it.
If they are, it’s also important to ensure they know exactly what you’ll be paying for and what you won’t be.
Once you’ve split the big costs associated with buying a car, you should also talk about some of the smaller fees. Specifically, you’ll be required to pay for a new car title, a title transfer fee, and sales tax on the car.
Here’s a breakdown of the fees you’ll need to pay:
Fee | Cost |
|---|---|
Title fee | $14.50 |
Registration fee | $12 |
Title transfer fee | $11 |
Sales tax | 4.2% on total cost of sale |
Record of the gift with a bill of sale
Even if you’re giving the car as a gift, it’s important to fill out and keep a copy of your bill of sale. If you’re ever in a position where you need to explain your finances, filling out Missouri’s
bill of sale form
can save you loads of trouble.To ensure both you and your gift recipient have the information you need, make copies of the bill of sale for both your records.
Transfer the vehicle title
Finally, you’ll need to transfer the title to its new owner to verify the car has been gifted.
While that may sound complicated, it’s a relatively easy process! Just fill in the necessary information about the new owner on the original Certificate of Title. The only odd piece of information to remember is that you should write “GIFT” in the purchase price section. Some people like to write $1 in the purchase price section, but Missouri specifically prohibits gifters from doing so.
Once you have all the documents you need, simply turn them in at the DMV and you’ll be good to go!
Purchase Missouri liability insurance—or full coverage
Of course, you or your gift recipient will need to make sure the gifted car is covered by good car insurance. Every state has its own policies regarding what kind of insurance you need before you can hit the road, and
Missouri is no exception
.To legally register the car and get it completely road-ready, the insurance policy will need to meet Missouri’s minimum requirements for liability coverage. Plus, you or the new owner may want to invest in collision and comprehensive coverage to avoid paying out of pocket in the case of an accident.
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How to find affordable car insurance in Missouri
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Do you have to pay taxes on a gifted car in Missouri?
Missouri does not require you to pay tax on a gifted car, but you should report the transaction to the IRS if the car’s value is more than $15,000.
Is it better to gift a car or sell it for $1 in Missouri?
Missouri’s gifting process is in place for a reason. The state specifically requests that gifters refrain from placing $1 in the sell price section of the original title.
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