When you gift a car in Georgia, you can avoid some of the sales tax and fees associated with privately selling a car—but you’ll need to give it to an immediate family member and transfer the motor vehicle title to their name. You’ll also need to complete a Declaration of Immediate Family Form (Form MV-16).

In Georgia, motor vehicles that you own can only be gifted to immediate family members.
The car you gift must be paid off before you can transfer the Georgia title.
Depending on the nature of the gift, you may want to discuss logistics like insurance coverage and other car expenses with your intended recipient.

How to buy a car as a gift in Georgia

If you want to buy a new car to give as a gift in the state of Georgia, you’re best off bringing the gift recipient to the

dealership

with you. This way, they can be involved with shopping and financing for the new car.

If you cannot pay fully up front for the new car, then you’ll need to wait until all your car loans are paid off to transfer the title to your recipient. By bringing them with you to the dealership, you ensure your finances stay up to snuff—and you’re better able to choose the exact car your recipient wants.

MORE: How to transfer a car title in Georgia

How to gift a used car in Georgia

For a full-send surprise gift, you’re best off gifting a car you already own to your recipient. In Georgia, you can gift a car to an immediate family member as long as you have a free and clear title to the vehicle.

Whether it’s a surprise birthday gift or simply a means of helping out a loved one, you’ll need to follow Georgia’s laws for gifting a car. Here are the steps you’ll need to follow:

Discuss the terms of the gift with your recipient: In Georgia, either the gifter or recipient will need to pay the $18 vehicle title transfer fee, a $20 license plate fee, as well as the vehicle registration fee and taxes. The gifted vehicle will also need smog certification and a vehicle inspection before the title can be legally transferred.

Record the gift with a bill of sale: Though it isn’t required in every state, it’s always a good idea to write a bill of sale so that you have a paper trail of the gift—and can avoid potential confusion down the line.

Transfer the vehicle title: In Georgia, you can start the title transfer process

online

. You and your giftee will need to complete and sign a Form MV-1 Certificate of Title/Tag Application before visiting the county tag office. Make sure to also bring along the car’s original title (which should be in your name) and the emission inspection certificate (if applicable), as well as

proof of insurance

on the vehicle.

Remember that in order to transfer the vehicle’s title, there cannot be any existing liens on the car. You’ll need to pay off any existing loans and retrieve the vehicle’s original title from the lienholder, if necessary, before you can transfer the car to the new owner.

Depending on the circumstances of the gift, you might also want to discuss who will pay for car insurance,

maintenance

, fuel, and other car expenses. Remember that car insurance is legally required in Georgia (as in most states), no matter how often the driver plans to use the vehicle.

Purchase Georgia liability insurance—or full coverage

Georgia’s minimum car insurance requirements

require all drivers to hold

liability coverage

. This coverage protects you when you cause a collision by paying for the damage to other drivers and their vehicles.

But, you might want to keep yourself better protected with

full-coverage insurance

, which helps pay for damages to your car—even when you are at fault in a collision. Once your giftee has met Georgia’s requirements for car insurance coverage, they will be good to drive!

MORE:

Donating a car in Georgia

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