To gift a vehicle in Washington, bring a completed bill of sale, new car title application, the current vehicle title, and payment for the $12 title transfer and applicable registration fees to your local Washington Department of Licensing Office.<\/p>\n\n\n\n
QUICK LOOK<\/span><\/span><\/div>\n\n
- If you gift a car in Washington, your recipient won\u2019t need to pay Washington sales\/excise tax on a gifted car if you can prove that these have already been paid.<\/li>\n\n\n\n
- You must transfer the title and register the vehicle in the new owner\u2019s name within 15 days of the gift.<\/li>\n\n\n\n
- The easiest way to gift a new car is to involve your recipient in the car-buying and financing processes.<\/li>\n<\/ul>\n<\/div><\/blockquote>\n\n\n\n
\n\n\n\nLearn more:<\/strong> How to lower your Washington car insurance costs<\/a><\/p>\n\n\n\n
\n\n\n\nHow to buy a new car as a gift in Washington<\/h2>\n\n\n\n
The easiest 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.<\/p>\n\n\n\n
Keep in mind: <\/strong>You can only gift a vehicle if you own it outright. A <\/a>car with a lien<\/a> will be much harder to gift if you\u2019re the only person signing the paperwork.<\/p>\n\n\n\n
Consider the following advantages of bringing your recipient to pick out their new vehicle:<\/p>\n\n\n\n
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- Financing agreements:<\/strong> You and your recipient can co-sign a car loan if needed. That way you can take responsibility for the payments without jumping through extra hoops to assign ownership to your giftee.<\/li>\n\n\n\n
- Gift security:<\/strong> You\u2019ll want to be sure your recipient is getting exactly the car they want.<\/li>\n<\/ul>\n\n\n\n
Key Takeaway<\/span>If you can\u2019t pay the full price upfront, the best way to gift a new car is to involve the recipient in the shopping and financing process.<\/span><\/div>\n<\/p>\n<\/div><\/blockquote>\n\n\n\n
How to gift a used car in Washington<\/h2>\n\n\n\n
Gifting a used car can be a lot cheaper than gifting a new car since you ideally already own the car in full; however, there are a few extra steps and paperwork that you\u2019ll need to consider when gifting a used vehicle in Washington.<\/p>\n\n\n\n
Negotiate the terms of the gift with your recipient<\/h3>\n\n\n\n
Sit down with your recipient and determine who will be responsible for the following gifted car costs:<\/p>\n\n\n\n
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- Washington transfer fee:<\/strong> $12<\/li>\n\n\n\n
- Vehicle registration fee:<\/strong> Varied depending on your county; contact your county\u2019s Licensing Office<\/a> to determine your fee.<\/li>\n\n\n\n
- Washington sales\/use tax:<\/strong> 0.3% use tax plus sales tax (avg. 8.841%) if the vehicle is less than seven years old. Provide proof for your gift recipient if you\u2019ve paid all sales and use taxes already.<\/li>\n\n\n\n
- Vehicle maintenance:<\/strong> Car ownership costs for fuel, repairs, and regular maintenance tasks can add up quickly for your recipient, unless you plan on handling them.<\/li>\n\n\n\n
- Car insurance<\/a>:<\/strong> If your gift recipient didn\u2019t have car insurance before, they\u2019ll need it now. Who will be responsible for paying the insurance premium?<\/li>\n<\/ul>\n\n\n\n
Use the table below to discuss the most significant costs with your recipient:<\/p>\n\n\n\n
Cost<\/th> Washington average<\/th><\/tr><\/thead> Title transfer<\/td> $12<\/td><\/tr> Registration fee<\/td> Varies<\/td><\/tr> Insurance<\/td> $1,860 (liability only), $2,492 (full coverage) per year<\/td><\/tr> Maintenance<\/td> $390 per year<\/td><\/tr> Fuel<\/td> $2,709 per year<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n Record of the gift with a bill of sale<\/h3>\n\n\n\n
Even though no money is changing hands, you still need to record the transfer of ownership with a bill of sale:<\/p>\n\n\n\n
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- The sale price on the Washington Vehicle\/Vessel Bill of Sale<\/a> should be listed as $0.<\/li>\n\n\n\n
- You and the gift recipient must sign the bill of sale.<\/li>\n<\/ul>\n\n\n\n
Purchase Washington liability insurance\u2014or full coverage<\/h3>\n\n\n\n
Your recipient will need a car insurance policy that meets Washington\u2019s minimum car insurance requirements <\/a>before they can assume ownership or register the vehicle.<\/p>\n\n\n\n
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