5 Smart Ways To Give a Car as a Gift This Season
Written by
Laura Bogart
Edited by
Rebekah Evans
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You’ve likely seen the commercials: People are gathered around a Christmas tree, when suddenly, someone says that the gift-giving isn’t quite done yet. A spouse or child (well, not a child anymore, a young adult; how on earth did that happen?) is summoned outside where the final gift is waiting on the driveway. A brand new, or at least new to them, car. Everyone laughs, cries with joy and hugs. End scene.
However, getting a ribbon around an SUV or any other car for that matter, isn’t exactly easy. Neither is financially planning for, finding and purchasing a car expressly to give as a gift. Searching and paying for a car, knowing that you’ll have to transfer the title and other forms of legal ownership, can be tricky.
Fortunately, if you’ve been inspired to create your own magical moment, there are steps you can take to gift a loved one with a car. GOBankingRates talked to some experts to learn how you can smartly approach giving the gift of a car.
Choose Between New and Used
To get new or go for used? That is the question. At least it is for Blake Shaw, automotive expert and author for the All About Wheels blog. She said that when you’re selecting a car to give to a loved one, one of your first major decisions will be whether to search for a new or used model.
“There are a number of factors to consider when deciding between a new and used car as a present, including your financial situation, the needs of the receiver and the significance of the ‘new car smell’ in creating an element of surprise,” she said.
Brand new vehicles come with a “wow” factor, as well as the peace of mind that comes from having warranties in place, not to mention the latest features. Still, that doesn’t mean that used cars don’t make great gifts.
“Be that as it may, if you are well-informed, used cars can provide far more value. You should consider the vehicle’s maintenance history and condition, although certified pre-owned vehicles still have a warranty,” Shaw said.
Consider the Recipient’s Needs
Shopping for a car is exciting, so exciting in fact that you’ll have to remember that, in this instance, you’re buying a car for someone who has their own needs. Shaw advised any prospective gift-giver to truly consider what will benefit the car’s future driver.
“Before you buy them a car, consider their needs. Do they prioritize fuel economy above all else? Maybe a hybrid or EV would be the ultimate gift. Or, if they love adventure, you might want to look at SUVs with all-wheel drive or off-road capabilities,” she said.
Do Your Research
As the owner of David J Greiner Law Corp, APC and former president and CEO of Greiner Buick GMC, David Greiner, Esq. is uniquely qualified to offer advice about how to purchase a car as a gift. His first piece of advice? Check the car’s vehicle history report and service records — discreetly, of course. He said getting a trust mechanic to thoroughly inspect the car is also a wise decision.
Work Directly With the Seller
Once you’ve determined that the car you’ve imagined in your loved one’s driveway is reliable, Greiner said your next best step is working directly — and privately — with the dealership or seller, including negotiating the best price to help keep your plans under (gift) wraps.
“For a new car, I would work directly with dealerships to explore options within budget, test drive favorites when the recipient isn’t around, and handle all paperwork to properly register and insure the vehicle in their name,” he said.
Prepare for Taxes and Registration
So, you’ve picked the perfect present, a car that will delight your loved one while meeting their practical needs. Now, it’s time for the less-than-exciting part of the process. The bureaucratic parts.
Shaw said you’ll have to figure out if you’re still liable for sales tax in your state, though the car will be a gift. She also explained that you’ll have to learn more about the nitty-gritty in terms of transferring ownership of the car.
“Transferring ownership to a spouse or family member may qualify you for a reduction or exemption in some states. You can find out what the regulations are in your area by contacting the DMV or looking them up online,” she said.
Shaw also added that once the car is officially registered in the recipient’s name, they’ll also be responsible for handling its insurance.
“You may be able to buy the car and register it temporarily in your name, but they will still have to transfer ownership in the end. To avoid any unwelcome surprises later on, it is best to work with a dealership or someone from the DMV who can guide you through this process,” she said.
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