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.
QUICK LOOK
- If you gift a car in Washington, your recipient won’t need to pay Washington sales/excise tax on a gifted car if you can prove that these have already been paid.
- You must transfer the title and register the vehicle in the new owner’s name within 15 days of the gift.
- The easiest way to gift a new car is to involve your recipient in the car-buying and financing processes.
Learn more: How to lower your Washington car insurance costs
How to buy a new car as a gift in Washington
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.
Keep in mind: You can only gift a vehicle if you own it outright. A car with a lien will be much harder to gift if you’re the only person signing the paperwork.
Consider the following advantages of bringing your recipient to pick out their new vehicle:
- Financing agreements: 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.
- Gift security: You’ll want to be sure your recipient is getting exactly the car they want.
Key TakeawayIf you can’t pay the full price upfront, the best way to gift a new car is to involve the recipient in the shopping and financing process.
How to gift a used car in Washington
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’ll need to consider when gifting a used vehicle in Washington.
Negotiate the terms of the gift with your recipient
Sit down with your recipient and determine who will be responsible for the following gifted car costs:
- Washington transfer fee: $12
- Vehicle registration fee: Varied depending on your county; contact your county’s Licensing Office to determine your fee.
- Washington sales/use tax: 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’ve paid all sales and use taxes already.
- Vehicle maintenance: Car ownership costs for fuel, repairs, and regular maintenance tasks can add up quickly for your recipient, unless you plan on handling them.
- Car insurance: If your gift recipient didn’t have car insurance before, they’ll need it now. Who will be responsible for paying the insurance premium?
Use the table below to discuss the most significant costs with your recipient:
| Cost | Washington average |
|---|---|
| Title transfer | $12 |
| Registration fee | Varies |
| Insurance | $1,860 (liability only), $2,492 (full coverage) per year |
| Maintenance | $390 per year |
| Fuel | $2,709 per year |
Record of the gift with a bill of sale
Even though no money is changing hands, you still need to record the transfer of ownership with a bill of sale:
- The sale price on the Washington Vehicle/Vessel Bill of Sale should be listed as $0.
- You and the gift recipient must sign the bill of sale.
Purchase Washington liability insurance—or full coverage
Your recipient will need a car insurance policy that meets Washington’s minimum car insurance requirements before they can assume ownership or register the vehicle.
Learn more: Compare car insurance quotes online
Transfer the vehicle title
The most important step in the gifting process is the transfer of title. This will legally transfer ownership of the vehicle from the current registered owner to the new owner.
To complete the vehicle title transfer process:
- Sign your current title over to the gift recipient and report the sale to the Department of Licensing.
- Complete an odometer disclosure statement if the car is less than 10 years old. (This form must be requested in person from a vehicle licensing office or by calling 360-902-3770.)
- Have your recipient bring the completed paperwork and title transfer fee to a DOL office.
- Complete the vehicle registration after the title transfer is taken care of.
Keep in mind: Title transfer and registration must be completed within 15 days of the gift.
FAQ
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Do you have to pay taxes on a gifted car in Washington?
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Is it better to gift a car or sell it for $1 in Washington?
Sarah Gray is an insurance writer with nearly a decade of experience in publishing and writing. Sarah specializes in writing articles that educate car owners and buyers on the full scope of car ownership—from shopping for and buying a new car to scrapping one that’s breathed its last and everything in between. Sarah has authored over 1,500 articles for Jerry on topics ranging from first-time buyer programs to how to get a salvage title for a totaled car. Prior to joining Jerry, Sarah was a full-time professor of English literature and composition with multiple academic writing publications.
Pat Roache is an insurance writer with over two years of experience in the automotive industry. With a focus on car insurance, maintenance, and brand reviews, Pat’s mission is to create engaging and accessible content that empowers readers to take autonomy over their car ownership. As a writer and editor with Jerry, Pat has penned over 600 original articles and edited over 1,000. Pat’s 8+ years of experience in the performing arts as a writer, director, producer, and performer lend to their keen eye for research and presentation. Most recently, Pat’s new English translation of Donizetti’s Italian opera “D[x]n Pasquale” had its world premiere in 2022 with Opera MODO (Detroit, MI). Pat also writes grants for an LGBTQ arts non-profit in Chicago, IL.
Kathleen Flear is an expert insurance writer and editor who previously lead up Jerry’s editorial team as director of content. Kathleen empowers drivers to make smart car ownership decisions through best-in-class articles on insurance, loans, and maintenance. Prior to joining Jerry in 2021, Kathleen served as managing editor for a team of SEO content marketing professionals at Article-Writing.co and worked as a freelance writer and editor for a range of digital publications, including Chicago Literati magazine and Golden Words. She earned a bachelor’s degree in English language and literature from Queen’s University, and a master’s degree in creative writing and fiction from Sierra Nevada University.
