Gifting a Car in North Carolina
If you’ve got the vehicle title in hand, you can gift a car in North Carolina by recording a bill of sale, filling out title transfer forms, and paying fees.
Written by Samuel Todd
Reviewed by Kathleen Flear
Gifting a car in
North Carolina
doesn’t always come with vehicle taxes, but you will have to go through the process of transferring the car’s title, which includes some fees.Nothing quite matches the excitement of giving (and especially, receiving!) a car. As great as it would be to simply drop off a ribbon-wrapped car at your friend or family member’s house, the process of gifting a car is a little more complicated than that.
Each state has its own rules and regulations for car gifting, whether you’re handing over a car you already own or giving one straight from the dealership.
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How to buy a car as a gift in North Carolina
If you’re giving away a pristine new car, you’ll want to get the giftee involved as soon as possible by bringing them into the dealership.
This is because you need to have the car title in hand before transferring the car to your friend or family member. If you’re buying it up front, it’s no problem—you can hand over the title right away.
On the other hand, if you need a little help from financing to buy the car, you’ll want to include the recipient from the get-go. That way, you can guarantee that they won’t hit any legal or financial roadblocks down the line.
Key Takeaway You need to have the car title in hand before you can gift a car in North Carolina—so it’s best to bring the recipient into the dealership and sort out the financing together.
How to gift a used car in North Carolina
If you’re passing a car down to your kid as a college present or giving one to a close friend, you can transfer the title of a car you already own. As long as there are no outstanding loans on the car, you’re good to go!
Whether you’re covering your friend’s eyes for the big reveal or just helping out a loved one without making a scene, you’ll have to follow a few rules for gifting your car. We’ll take you through each part of the process so that it’s seamless and stress-free.
Negotiate the terms of the gift with your recipient
Once hugs have been shared and the laughter has died down, you should look over the terms of your gift. In
North Carolina
, these are the key costs to decide on:- A $52 certificate of title
- A $20 vehicle plate transfer
- A highway use tax that’s equal to 3% of the car’s sales price (unless you’re giving the car to certain family members)
- Long-term costs, like insurance, maintenance, and fuel
The last thing you want is to give a car to your friend, only for them to be ambushed by its long-term financial expenses. If the two of you sit down and talk over these costs, you’ll be able to keep everybody on the same page and prevent any awkward misunderstandings.
Record the gift with a bill of sale
It might seem odd that you need a bill of sale when nothing is being sold and no money is trading hands. It’s better to think of the bill of sale as proof that you intended to give the car away.
All you need to do is place $0 in the “price” section of the bill, which indicates that you’re giving it as a gift. Make sure that you and the recipient both sign the bill of sale so that you don’t run into any legal snafus down the road.
Transfer the vehicle title
Transferring the title is the most important part of all. This is how the car will officially change hands—so it’s important to do it right!
If the process sounds daunting to you, don’t sweat it. Jerry is here to make it crystal clear:
- Provide proof of North Carolina ID and insurance, and make sure all property taxes are paid
- Bring the vehicle title and show that there are no outstanding liens
- Complete aTitle Application(MVR-1),Odometer Disclosure Statement(MVR-180), andDamage Disclosure Statement(MVR-181)
- Complete aHighway-Use Tax Exemption Certificate, if the car is being transferred between spouses, a parent and a child, or a stepparent and a stepchild
- Pay the transfer of title fees
And you’re all done! It’s a lot of forms, but you should have no trouble if you just take it one step at a time.
Keep in mind that you might need to go through a car inspection and pass an emissions test within a few months of the title transfer. Now it’s time for the final step (we promise!)—getting the right insurance.
Purchase North Carolina liability insurance—or full coverage
In North Carolina, you’ll need to get
liability coverage
, which is required by law. Full-coverage insurance is a great idea if you want to upgrade your insurance to ensure you’re always covered.Once you’ve found the perfect car insurance, your friend or family member is free to cruise the busy streets of Charlotte or take their new ride for a spin up the eastern coastline.
“With little to no work on my part,Jerrysaved me $70 a month in North Carolina. The process was simple and flawless. I will be working with Jerry in the future!” —Emmanuel K.
How to find affordable car insurance in North Carolina
All of the forms that come with transferring the title of your car can dampen the mood of your car-gifting celebration. Here at
Jerry
, we’d love to revive the revelry by helping you save time and money on insurance shopping.Our process is simple: just download our top-rated app, sign up (it only takes 45 seconds!), and let Jerry work its magic. We’ll get you the cheapest quotes from over 50 top insurers, then help you cancel your old policy and start your new one.
With Jerry, you don’t have to worry about paperwork and phone calls—you can complete the whole process from the comfort of your phone. Here’s the best part, though: the average Jerry user saves $887 on
car insurance
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Do you have to pay taxes on a gifted car in North Carolina?
If your car is a gift from your spouse, parent, or stepparent, you can have the 3% highway-use tax waived. Otherwise, you might still need to pay a few taxes and minor fees.
Is it better to gift a car or sell it for $1 in North Carolina?
Though it’s possible to sell your car for $1, we wouldn’t recommend it: it often takes more work than simply gifting the car and rarely saves you money. On top of that, the contract wouldn’t be based on the fair market value of the car, so it might not be legally valid.
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