Gifting a car in Delaware is the same process as buying one and requires you and your recipient to fill out the title and pay various fees at the DMV.

Written by Kathryn Kurlychek

Reviewed by Kathleen Flear

Updated on Dec 6, 2022

Table of Contents

How to buy a car as a gift in Delaware
How to gift a used car in Delaware
How to find affordable car insurance in Delaware
FAQs

The process of gifting a car in

Delaware

is much the same as buying one. You’ll need to fill out both the Assignment of Certificate of Title on the back of the vehicle’s title and the Seller’s Report of Sale on the back of your registration card, as well as pay registration and title transfer fees at your local DMV.

Whether you’re gearing up for a

birthday surprise for your teenager

or giving a vehicle to a relative in need, the process of gifting a car can be confusing to navigate. That’s why car insurance comparison super app

Jerry

has compiled all of the information you need to legally gift a car in Delaware.

The good news is that in Delaware, the process for gifting a car is the same as buying one—meaning you can follow the rules laid out on

Delaware’s DMV

website that refer to buying or selling a vehicle.

How to buy a car as a gift in Delaware

The easiest way to give a new car as a gift is to include the recipient in the buying and

financing

process. If you’re going directly to a dealership, then having your recipient along with you can make the process of paperwork simpler and save you potential fees associated with

title transfers.

If you’re car shopping out-of-state, make sure you bring the new vehicle’s title, bill of sale, and insurance to your local DMV upon completing the purchase and obtain an in-state inspection at a

Delaware inspection lane

How to gift a used car in Delaware

The first step in gifting a car you already own is obtaining the vehicle’s title. In most states, you cannot gift a car that you don’t own (aka, a car that has a

lien

on it); however, because the process for gifting and buying a car is the same in Delaware, giving someone a car that’s not paid off isn’t entirely out of the question.

It’s important, of course, to consider the cost of gifting to your intended recipient. Cars with liens face higher title transfer fees, and you’ll need to provide a lien release for the person you’re gifting the car to.

Once you’ve got the title in hand, you’ll need to transfer the title of the car to your intended recipient, the same way you would if you were selling the car to them. This can be done at your local DMV.

Prior to going, you’ll want to complete these steps:

Complete the Assignment of

Certificate of Title

on the back of the vehicle’s title. All persons listed on the vehicle’s title must complete this section

Remove the Seller’s

Report of Sale

from the vehicle’s title and fill it out in its entirety (including the date of sale, the amount paid for the vehicle, the recipient’s information, the odometer declaration, and your signature)

Once you’ve completed both forms, you’ll present them at your local DMV, along with your insurance policy information and a valid Delaware driver’s license.

Key Takeaway The process of gifting a car in Delaware is the same as buying one. You can think of yourself (or the person that’s gifting the car) as “the seller” and the intended recipient as “the buyer.”

MORE:

Car insurance for used cars

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Transfer the vehicle title

Delaware DMV laws require you to initiate a transfer of title within 30 days of selling your vehicle. The same is true in cases of gifting—if you wait longer than 30 days, you may be subject to a $25 fine.

In addition to completing the Assignment of Certificate of Title and the Seller’s Report of Sale, your giftee (or “buyer”) must also sign the Assignment of Certificate of Title and fill out the Purchaser’s application, also located on the back of the title.

Once all your forms are filled out and signed, it will cost $35 to transfer the title to your giftee, and $40 to register the vehicle for road use. Additionally, Delaware charges 4.25% of the sale price or trade-in value (whichever is greater) to cover the document fee.

Out-of-state title transfer

If you’re gifting a car that’s registered out-of-state, take care to complete these extra steps:

Present the old title, bill of sale, and your insurance card to the DMV to obtain a five-day temporary tag

Have the vehicle inspected at a

Delaware inspection lane

Once the car is certified by the state as safe to drive, you can bring all your paperwork to your local DMV and receive a new title and registration.

Key Takeaway If you’re gifting a car that you’ve purchased out-of-state, you’ll need to get a Delaware state inspection on the vehicle before you can transfer the title.

Purchase Delaware liability insurance or full coverage

Once you’ve gotten through all the paperwork involved in transferring your vehicle’s title to its new owner, the last step is to make sure that the new owner gets the right car insurance!

Delaware requires

all registered vehicles to carry liability insurance and personal injury protection (PIP).

MORE:

Liability car insurance: what is it? Do you need it?

How to find affordable car insurance in Delaware

Delaware has some of the highest insurance rates of any state in the U.S.

If you’re looking for an insurance policy as a part of your gift, look no further than

Jerry

! Jerry is your ultra-talented car insurance broker for life, helping you find affordable insurance for your vehicle without sacrificing coverage.

Unlike the DMV, Jerry handles all of the paperwork for you—and can even help you cancel your old policy. In less than a minute, Jerry generates quotes on car insurance rates similar to your current plan. Just download the app, answer a handful of questions, and watch the savings roll in!