Gifting a Car in South Carolina
A vehicle can be gifted in South Carolina with a proper transfer of the title and payment of associated fees.
Written by Drew Waterstreet
Reviewed by Kathleen Flear
When you gift a vehicle in
South Carolina
, you’ll need to transfer the title and make sure the sale price is listed as “0.” The new owner may be exempt from paying the vehicle’s sales tax.Whether it be a hand-me-down or in honor of a special occasion, receiving a car as a gift is a memorable moment. But, it’s not as simple as handing over the keys. Transferring the title correctly is key to making sure the gift-giving process goes smoothly.
Luckily, the
car insurance
and all-around car experts at Jerry
are here to make sure you know how to legally gift a car in South Carolina. We’ll cover how to do it, common mistakes, and the fees you can avoid through gifting. Let’s dive in!How to buy a car as a gift in South Carolina
The best way to go about gifting a car is to bring the recipient to the dealership with you. Sure, this may take away from the surprise, but it’s the best way to handle the shopping and financing process.
Keep in mind, a vehicle can not be gifted if you do not own the vehicle outright. If there is an outstanding
lien
or car loan
, the title can not be transferred as a gift. If you truly want the car to be a surprise, you’ll have to put the loan in your name. The recipient could certainly also co-sign on the loan. Moral of the story: surprises can be expensive and complex.
Key Takeaway Involving the recipient of the gift in the shopping process makes the paperwork easier and opens the door to alternative financing options.
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How to gift a used car in South Carolina
Gifting a used car can sometimes be more rewarding than gifting a new car, as oftentimes it’s someone's first car. Let’s make sure you know how to handle all the paperwork so you can celebrate the occasion.
Negotiate the terms of the gift with your recipient
Unfortunately, gifting a car isn’t completely free. When gifting a vehicle, it’s important to negotiate up front who will pay for the process. Here are some associated fees that you can expect:
- Original vehicle title: $15
- Infrastructure maintenance fee: 5% of the purchase price ($500 maximum)
Luckily, the fees stop there. Under South Carolina Code Section 12-36-1720 and SC Revenue Ruling #92-10, the vehicle is exempt from sales tax, use tax, and casual tax. As the law puts it, there has been “no sale;” rather, the transfer has been executed through “love and affection.”
Another thing to consider is the current condition of the vehicle and the recipient's driving record. These two factors could make maintenance and insurance expensive for the recipient. You don’t want your gift to be more burdensome than beneficial.
Record of the gift with a bill of sale
Completing a bill of sale is sometimes required, even though there is technically not a financial transaction occurring. In South Carolina, a bill of sale must be presented before transfer if the vehicle title was issued before June 19, 1987.
A bill of sale is also a nice thing to keep in your records in the event that there are any legal or tax implications about the transfer.
Transfer the vehicle title
Now that you've hashed the details of your gift, it’s time to head to your local South Carolina Department of Motor Vehicles (SCDMV). Here’s a step-by-step guide on completing the title transfer process:
- Complete and sign the vehicle title and certificate (the vehicle’s seller and the buyer must sign the title certificate)
- Indicate “0” in the price section of the vehicle’s title
- Complete a bill of sale (when applicable)
- Complete the vehicle title transfer applicationForm 400
- No emissions test is required in South Carolina under the Clean Air Act
Once you’ve completed all of the paperwork with the SCDMV, it’s time to register the vehicle under the gift recipient's name. In South Carolina, this entire process must be completed within 45 days.
Purchase South Carolina liability insurance—or full coverage
As mentioned earlier, car insurance is one of the expenses to follow the vehicle gifting process. Make sure the new owner is prepared to include this in their budget.
It is illegal in South Carolina to drive without car insurance—check out the
South Carolina insurance laws
to make sure you find a policy in compliance.MORE: Title Transfer in South Carolina
How to find affordable car insurance in South Carolina
Gifting a car can be an incredible way to celebrate a variety of occasions. But, the celebration doesn't have to stop there!
Jerry
can find you an affordable car insurance policy that meets all of your needs.But who is Jerry? Jerry is your personal insurance broker in your pocket. Once you download Jerry, just answer a handful of questions that will take you roughly 45 seconds to complete and you’ll immediately get car insurance quotes from more than 50 top providers. Jerry customers save an average of $887 a year! Now that’s a gift worth celebrating!
“This app is all about savings!Jerryjust saved me $193/month on my car insurance. They literally found me the cheapest policies out there and with better coverage! Seriously, just sit back and watch Jerry work its magic.” —Rachel B.
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Do you have to pay taxes on a gifted car in South Carolina?
No, you will be exempt from sales tax, use tax, and casual tax. But, there is a fee to execute the title transfer and an infrastructure maintenance fee.
Is it better to gift a car or sell it for $1 in South Carolina?
The process is much easier to handle in South Carolina if you gift a car as opposed to completing a sales transaction.
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