It is an incredibly wonderful present to give a car as a gift. As exciting as it is to give someone a car for the holidays, it’s important to consider the costs and logistics beforehand. Here’s a few of the most important things for you to know about when buying someone a new or used car as a gift.
Remember that when you purchase the car in advance, the title will be placed under your name so you will need to sign the title transfer document to properly hand out the ownership to the recipient. If the gift-giving scenario happened in a dealership where the recipient chose his car as a gift, then the ownership can be placed under him at once. The title transfer rules here in Florida are a bit tricky. Check out this page to learn more.
GET A FREE INSURANCE QUOTE FOR GIVING A CAR AS A GIFT
The sweetness of gift-giving has its corresponding bittersweet truth due to taxes and involved you’re passing along. As the term suggests, the fee referred to is called a gift tax. As the giver, you have to set aside a budget for this fee so as not to be caught off guard by it.
Another thing to factor in is the Florida car insurance. It will clear your head if the vehicle that you give to your loved-one is automatically insured. The question of whether to place this vehicle on your own policy or to setup a separate policy is one that is best discussed with your agent. If you’re not sure give us a call at 407 878 7979 and we’ll walk you through the process to get the best coverage and the most affordable price for you or the gift receiver. We can help anyone throughout the state of Florida find the best auto insurance rates.
There are a few more expenses your gift receiver will need to consider.
- Maintenance costs
- Continued Insurance Premiums
- Gas (will it go back up again?)
Weigh the good and the bad sides of giving a car as a gift. Don’t forget to consider the perspective of the person receiving the gift as well so you would know if this will be truly cherished or not. You want to be sure your gift will be well-received so it’s worth considering all the expenses included to ensure that your gift will treasured for a long time.
Not Gifting to a Family Member May Be a Bit More Difficult
Things can be much more complicated if you are not a co-owner of the vehicle. Titling a car in someone else’s name without that person’s signature on some paperwork is very difficult, especially if you are financing the car. Insurance can also be a challenge. Call us today to talk about your details.
SunGate Insurance Agency Coverage
Home Insurance, Auto Insurance, Group Insurance, Property Insurance, RV Insurance, Renters Insurance, Event Insurance, Insurance Bonds, Life Insurance, Business Insurance, Workers Comp, Flood Insurance, Umbrella Insurance and more!
Located in Lake Mary, Florida (serving clients Nationwide and locally in Orlando, Heathrow, Longwood and surrounding Central Florida areas.