Gifting a Car in Wisconsin
To gift a car in Wisconsin, you’ll need to pay title transfer and registration fees and fill out some paperwork.
Written by Sara Brody
Reviewed by Kathleen Flear
When gifting a car in
Wisconsin
, you should expect to pay title transfer and registration fees, along with filling out some paperwork. Following the proper process can help you waive taxes and fees associated with a private vehicle sale. A car is undoubtedly a generous gift, but that doesn’t mean it’s simple to give one away. Since every state uses different regulations for vehicle gifts,
car insurance
comparison super app Jerry
has created a guide to gifting a car in Wisconsin. Read on to learn everything you need to know.How to buy a car as a gift in Wisconsin
When buying a car as a gift, it’s important to bring the recipient with you to the dealership to involve them in the shopping and financing process.
One reason for this is that you cannot gift a vehicle with
liens
on it. You must pay off any loans in order to transfer the title to your recipient. Thus, to ensure your recipient gets the car they want while avoiding unexpected legal or financial stressors, make them a part of the car buying process
.Key Takeaway You’ll need the title to your vehicle to give it to someone else—so if you’re planning to gift a new car, bringing your giftee to the dealership can be helpful for all involved.
How to gift a used car in Wisconsin
In most states, Wisconsin included, the best way to gift a car is to
transfer the title
of a vehicle you already own to your new recipient. This doesn’t mean that only old vehicles can be given as gifts! While you could certainly give away an existing vehicle that you’ve already paid for in full, you can transfer the title of a brand new car as well.Whether you’re preparing for a dramatic driveway reveal or just offloading a car you’re not using to a loved one, the steps are the same. Here’s everything you need to know about legally gifting a car in Wisconsin.
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Negotiate the terms of the gift with your recipient
After you’ve shared your exciting news, you’ll need to figure out the terms of the gift. Since a title transfer involves fees and car ownership comes with regular costs, you must consider more than just the purchase price of the gifted car.
In
Wisconsin
, a title transfer is fairly pricey compared to other states: expect to pay $164.50 for the majority of title transfers or $157 for a low-speed vehicle. The only situation in which title transfers are free is when the title is being transferred from a deceased driver to a surviving spouse or domestic partner, which probably doesn’t apply to your gift. Sit down with your recipient and discuss who will pay for the title transfer. Also, talk about who’ll be responsible for
car maintenance
, insurance, fuel, and whatever other expenses are associated with the car. This ensures that your recipient is prepared for the financial responsibility that comes with your generous gift. Here’s a table of the costs you should discuss with your recipient.
Cost | Wisconsin average |
|---|---|
Title transfer | $164.50 in most cases |
Registration fee | $85 |
Insurance | $1,624 (liability only), $1,648 (full coverage) per year |
Maintenance | $1,186 per year |
Fuel | $7,929 per year |
Record of the gift with a bill of sale
Why would you need a bill of sale for a gift? Well, for starters, a Wisconsin bill of sale acts as a legal record of your transaction. Protect yourself from legal consequences in the future by keeping a copy in your records.
By signing the bill of sale, both you and your recipient certify that you have agreed to the terms of the gift.
Transfer the vehicle title
The most important step in the car gifting process is the title transfer. This is how you officially transfer ownership of the car to your giftee.
In Wisconsin, the process for title transfers for a gifted vehicle is similar to title transferring after a private sale. The person gifting the car acts as the seller while the recipient—or organization in the case of charity donations—acts as the purchaser.
In some cases, the title transfer can be completed online or by mail. Review the criteria on the
Wisconsin DMV website
to see if you’re eligible. But whether you’re starting the process virtually or in person at a Wisconsin DMV office location
, you’ll need to submit the following documents:- The current original title, assigned to you by the seller.
- Valid ID.
- Plates to transfer (if applicable).
- Payment for:
Purchase Wisconsin liability insurance—or full coverage
Regardless of whether you or your recipient is paying for it, you’ll want to make sure that the gifted car is protected with
a valid Wisconsin car insurance policy
. After you complete this final step in the gifting process, your giftee is free to drive off into the sunset!“It was my first time buying insurance. I expected the worst, to be honest. And then I foundJerry. It’s an amazing app that’s super easy to use. It saved me so much time and energy.” —Simon M.
How to find affordable car insurance in Wisconsin
Jerry
is here to help all Wisconsin drivers find the lowest rates available on insurance coverage—whether you’re gifting an insurance policy to a loved one along with a new car, or just shopping for better rates for yourself. The process is simple as can be: just download the app, plug in your basic information, and within 45 seconds, you’ll receive custom quotes from dozens of top companies.
Jerry wants to give you the gift of guaranteed savings without any hassles or headaches. That’s why our expert team of agents is always on call to answer questions, and why we handle the paperwork and sales calls on your behalf, so you don’t have to worry. With the average user saving $887 per year on car insurance, it’s no surprise that Jerry is the cream of the crop among insurance apps!
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Do you have to pay taxes on a gifted car in Wisconsin?
Nope! In Wisconsin, if you inherit a car or receive one as a gift, you are not required to pay sales tax.
Is it better to gift a car or sell it for $1 in Wisconsin?
If you’re not planning to sell your car for a fair market price, the DMV gift process is the safest and most legitimate way to transfer a car as a gift.
Reduce your monthly car payments in minutes?
Find out if Jerry can reduce your payments by an average of $150/month
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