Gifting a Car in Washington
To gift a vehicle in Washington, submit a bill of sale, new title application, current title, and payment for fees to the Department of Licensing.
Written by Sarah Gray
Reviewed by Kathleen Flear
Gifting a vehicle is a great way to avoid many of the taxes and fees associated with private vehicle sales in
Washington
. To gift a vehicle in Washington, bring a completed bill of sale, new title application, current vehicle title, and payment for relevant fees to your local Washington Department of Licensing Office.Gifting a car is generous, but it can often be complicated. Each state has its own laws and guidelines associated with giving a car to another person, and some states’ processes are more complicated than others.
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How to buy a car as a gift in Washington
Buying someone a brand new car is very generous, but you can only gift a vehicle if you own it outright.
This means that unless you’re able to pay full price upfront, the simplest way to gift a brand new car is to bring the recipient with you to the dealership so they can be part of the shopping and financing process. This way, you can not only be sure your gift recipient is getting exactly the car they want, but you’re also protected from potential financial or legal hassles later on.
Key Takeaway If you can’t pay full-price upfront, the best way to gift a new car is to involve the recipient in the shopping and financing process.
How to gift a used car in Washington
Whatever the reason or occasion for gifting a vehicle in Washington, the process is the same. Here’s what you need to do.
Negotiate the terms of the gift with your recipient
Yes, the car is a gift, but there are still some fees to pay and costs of ownership to consider. Regardless of whether you plan to maintain the car for the recipient or if they’re expected to pay for insurance and maintenance on their own, you both still have some paperwork and steps you need to complete together.
First, you’ll need to determine which of you pay
Washington
’s $12 transfer fee and the registration
fee, which varies depending on the county in which you live. You’ll need to contact your county’s Licensing Office
to determine your fee.Next, be sure to provide proof for your gift recipient that you’ve paid all sales and use taxes on the vehicle. If you don’t plan to do this, the recipient will be responsible for paying a 0.3% use tax plus sales tax if the vehicle is less than 7 years old.
Finally, you’ll need to determine who will be responsible for
maintenance of the vehicle
. Insurance, fuel, and repairs are ongoing expenses associated with any vehicle—whether it’s gifted or purchased. You want to ensure the gift you’re giving doesn’t actually become a burden.Here’s are some of the costs you should discuss with your recipient:
Cost | Washington average |
|---|---|
Title transfer | $12 |
Registration fee | varies |
Insurance | $1,860 (liability only), $2,492 (full coverage) per year |
Maintenance | $390 per year |
Fuel | $2,709 per year |
Record of the gift with a bill of sale
Even though no money is changing hands, you still need to record the transfer of ownership not only through the title but also through a bill of sale. The sale price on the
Washington Vehicle/Vessel Bill of Sale
should be listed as $0. You and the gift recipient must sign the bill of sale. Transfer the vehicle title
The most important step in the gifting process is the transfer of title. This is the step that legally transfers ownership of the vehicle from you to the new owner.
Most of this step falls to the recipient of the gift, but you still need to sign your current title over to the gift recipient and
report the sale to the Department of Licensing
.Now that your paperwork is completed, bring it and the title transfer fee to your nearest DOL office where you’ll be able to complete the vehicle registration. Title transfer and registration must be completed within 15 days of the gift.
Purchase Washington liability insurance—or full coverage
The final step in the car-gifting process is ensuring the vehicle is covered with at least the
minimum car insurance required in Washington
. Once your gift recipient is fully insured, it’s time to take that new ride for a spin!How to find affordable car insurance in Washington
A car is a very generous gift that keeps on giving—and so is
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It takes just a minute to sign up and the average user saves $887 per year on their premium.
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Do you have to pay taxes on a gifted car in Washington?
No. As long as the previous owner paid Washington Retail Sales Tax or Use Tax, and no money changed hands, you do not have to pay taxes on the gifted vehicle. If the previous owner lived out of state, Washington even credits you for any taxes the original owner paid there.
Is it better to gift a car or sell it for $1 in Washington?
The DMV has a gift process for a reason—it’s the most legitimate way to transfer a car as a gift in Washington and the safest bet if you’re not planning to sell the car for a fair market price.
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