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If you are getting a new car and planning to give your old car to a family member, there are steps you must take to give ownership to the new owner. Below are three of these steps to follow so you can get your old car out of your driveway.
Obtain Your Title
If you have just paid off your older car, you may not have received your car title in the mail yet. If not, and it has been some time, contact the lender to see if the car title has been mailed yet. If not, ask them why, and ask them to get it in the mail as soon as they can. You need the car title in order to transfer your old car to your family member.
Fill Out The Title
Once you receive your title, you must fill it out completely before you can give your car to your family member. There is a place on the document for you to list your name as that of the person selling the car. You have to put your family member's name on the document, as well as the current mileage on the car. Because you are not selling but giving the car to your family member, you will not put the sales price on the title. Instead, you will put a different word, such as "gift," in the box. The exact word depends on the requirements where you live. You will the sign your name and date the document.
Transfer Title
Once the title is filled out, you need to transfer it to your family member. How this is done does depend on the state that you live in. In most states, however, you have to sign the title over in front of a witness and have it notarized. This proves that you are the one that signed the document. In most cases, family members will pay much less tax or no tax during the title transfer. People who qualify for this exemption will include your mother, father, daughter, ants, and uncles. If you are transferring the title to someone that has a different last name than you, then you will have to prove that you are related to them.
When you finish with the above steps, visit your local Department of Motor Vehicles (DMV) and tell them you are transferring your title. The DMV can complete the transfer to you. There are also auto companies that offer car title transfer services.The family member will likely receive their new car title in the mail. The DMV will issue the family member a temporary title until they receive the actual one.
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