like any other private vehicle transaction with a title transfer and a sale price—just in this case, the price is $0 and the recipient is able to avoid paying any taxes.

There’s a lot more that goes into gifting a car than say a sweater or a cellphone, but the payoff of giving such a generous gift will be well worth it. Every state has different regulations around vehicle gifting, but no matter where you live, there are a few steps in the process.

With this handy guide from

car insurance

comparison app

Jerry

, you’ll learn everything there is to know about how to give a car as a gift in Ohio.

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How to buy a car as a gift in Ohio

To gift a new car in Ohio, you’ll need to buy the car outright before going to the BMV to perform the title transfer. That being said, consider bringing the recipient to the dealership to involve them in the shopping process instead.

Gifting a new car can get tricky because you won’t be able to

transfer the title

to the recipient if the vehicle has a

lien

on it (i.e., if you buy the car with a loan in only your name). If purchasing a vehicle outright is a bit outside of your budget, you may be better off cosigning on a

loan

or lease and then taking financial responsibility for paying it off. That way, the recipient’s name can be on all the paperwork, too.

Key Takeaway Before you can gift a car, you need to fully own the vehicle. If you can’t pay for a car outright, a better idea would be to involve the gift recipient in the car-buying process.

MORE:

How to buy a new car

How to gift a used car in Ohio

Alternatively, you can gift a used car in Ohio more easily if the vehicle is paid off. When you’re ready to upgrade your vehicle, maybe you plan to pass down your old car to someone you care about who doesn’t have one.

Or if you’re buying a used vehicle to gift, it’ll be a lot cheaper to buy outright, which will enable the title to be transferred. Just make sure the car’s in working order first.

Negotiate the terms of the gift with your recipient

A car is an exciting gift, but it comes with a lot of financial responsibilities, including the initial title transfer fees, regular maintenance, and car insurance costs. Take some time with your recipient to talk about these things and to reach an agreement on who will pay for what.

Since giving the gift of a car is considered a sale in the state of Ohio, the recipient is technically responsible for the title transfer. An Ohio title transfer comes with a $15 transfer fee. There’s another $15 duplicate fee if you need another copy.

Once you’ve decided who’s going to cover the title transfer, take time to review car expenses like registration, maintenance, insurance, and fuel with your recipient. It’s important to clearly outline the financial responsibility that comes with being given a car.

Make sure to discuss the following costs with your recipient.

Cost	Ohio average
Title transfer	$15
Registration fee	$31
Insurance	$1,548 (liability only); $1,628 (full coverage) per year
Maintenance	$354 per year
Fuel	$1,347 per year

Transfer the vehicle title

Transferring the vehicle title is the most important step in the car gifting process in Ohio. Once it’s done, the recipient will legally have ownership of the vehicle. Make sure to complete the title transfer within 30 days of the gifting.

Head to your local Bureau of Motor Vehicles (BMV) office to perform the vehicle title transfer with your recipient. You’ll need the following required documents:

The current vehicle title assigned to the gifter

Application for Certificate of Title to a Motor Vehicle

(Form BMV 3774)

Valid photo ID

Odometer Disclosure Statement

(which can usually be found in the current title)

Payment for transfer fees

In the vehicle title section labeled Price, write $0 to signify the vehicle is a gift. That way, the recipient can avoid having to pay sales tax. Continue to the back of the original vehicle title to fill out the transfer of ownership sections. To finish the process, just sign the document and get it notarized!

Special circumstances in Ohio title transfers

If the vehicle is coming from out of state, you’ll have to complete a VIN inspection at the BMV, as well as an out-of-state inspection form to do the title transfer.

Most vehicles are also required to pass smog emission testing every two years. In Ohio, this applies if you live in the following counties:

Cuyahoga

Geauga

Lake

Lorain

Medina

Portage

Summit

Gifted vehicles in these counties that are not exempt will have to be up to date on their emission test before being registered by the recipient. Check with your local BMV to see if your gifted vehicle is exempt from testing.

Purchase Ohio liability insurance—or full coverage

Regardless of who’s paying for it, the gifted vehicle will have to meet

Ohio’s minimum requirements

for liability insurance. Upgrading to

full-coverage car insurance

is wise (unless the car is old) if you or the recipient can afford it.

MORE: Factors to consider when getting insurance for a new car

How to find affordable car insurance in Ohio

By telling your giftee about

Jerry

, you can even give the gift of affordable

car insurance

. It’s this simple: tell them to download the Jerry app for free. Sign-up takes less than 45 seconds, and Jerry will immediately present them with competitive quotes from top providers like Nationwide and Progressive.

All they need to do is pick the policy and price that suits their needs and Jerry takes care of the rest. Average users save $887 a year on car insurance!

“Since I’m under 25, I thought paying a lot for insurance was normal.
Jerry
made it easy to find affordable insurance. It was even easy to switch insurance agencies. I went to bed and woke up with new insurance.” —Steven C.

Do you have to pay taxes on a gifted car in Ohio?

No! Ohio does not require the recipient to pay taxes on a gifted car if the price is listed as $0 on the vehicle title.

Is it better to gift a car or sell it for $1 in Ohio?

Following the gifting procedure by transferring the title at the BMV is the most legitimate way to pass on a car in Ohio.

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