, you can circumvent some of the taxes and fees of a private sale by gifting a vehicle. However, generosity won’t save you from completing the gifting process—you’ll still need to complete a title transfer and pay a small fee.

They say giving is the most powerful gift a person can receive. We’d argue this is especially true for vehicles—because, well, cars are expensive (and difficult to wrap). As with most large transfers, there are a set of rules and regulations you’ll need to follow.

To help you understand the car gifting laws of Nebraska, the

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has a complete guide. We’ll cover everything from how to do it to common mistakes to avoid.

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How to buy a car as a gift in Nebraska

To ensure your vehicle gifting goes as smoothly as possible, we recommend bringing the recipient with you to the dealership. Shopping together can be especially useful if you’re gifting the car to a family member—such as someone who has just received their license.

While at the dealership, walk them through the

car buying process

. This can help avoid legal hassles (when signing the title) and ensure you settle on a vehicle that suits them best. Keep in mind that a dealer will factor in who the car is for during negotiation—the best deals may present themselves if you buy the vehicle for yourself, then gift it later.

You can only gift a car that does not have a loan associated with it. This means you’ll need to pay the total price of a vehicle upfront or complete any loan terms before gifting can take place.

Key Takeaway You need a title to gift a vehicle, so consider bringing the recipient with you to the dealership.

MORE:

How to buy a new car

How to gift a used car in Nebraska

Sure—the dealership option is the easiest way to gift a vehicle. But sometimes, nothing beats a good surprise. Any vehicle, regardless of age, can be transferred as a gift if any outstanding loans have been paid off.

The same steps apply if you’re giving a used vehicle without the surprising flourishes. Helping out a friend or donating a car to charity? Good on you. Let's dive into the process.

Negotiate the terms of the gift with your recipient

When we think of gifts, we usually think free of charge—but there are several costs associated with gifting a vehicle.

Transferring a title

has its fees, and car ownership, in general, can be expensive. Before beginning the gifting process, sit down with the recipient to discuss how costs will be distributed.

In Nebraska, you’ll need to pay a $10 inspection fee to transfer a vehicle. On top of that, you’ll be charged $10 for the vehicle's title transfer.

Beyond gift-related costs, you should settle on what the recipient will pay for car maintenance, fuel, and insurance. You don’t want a thoughtful gift to become an unexpected financial burden.

Here’s a table of the costs you should discuss with your recipient:

Cost	Nebraska average
Title transfer	$10
Registration fee	$15
Insurance	$335 (liability only), $1531(full coverage) per year
Maintenance	$349 per year
Fuel	$2,656 per year

Record of the gift with a bill of sale

In Nebraska, you’ll also need to fill out a bill of sale when gifting a vehicle. But you’re not selling anything—you might say. Regardless, if ownership is changing hands, a

bill of sale

is required to certify the transfer was done correctly.

A bill of sale will also protect you from further legal implications. If the car’s involved in an accident or a crime, your bill of sale will be the easiest way to prove it’s no longer your vehicle.

You and the vehicle recipient should both sign the bill of sale. Under “sale price,” write “gift” to certify the transfer.

Transfer the vehicle title

While a bill of sale documents the transaction, a title transfer changes the ownership of the vehicle.

You and the vehicle's new recipient should fill out and sign the vehicle title. If you don’t have the original, you can order a replacement title for a $10 fee. You’ll also need to fill out a Nebraska Sales/Use Tax and Tire Fee Statement for tax purposes. This form can be found at your country treasurer's office and will exempt you from normal sales tax.

Write “gift” in the appropriate box to certify the transaction as a gift.

Once the paperwork is filled out, bring everything to your local Department of Motor Vehicles (DMV) office. Once transferred, you’ll need to register the vehicle within 10 days of the gifting process—this can also be done at the DMV.

Purchase Nebraska liability insurance—or full coverage

After transferring a vehicle, you must make sure the car is covered by basic Nebraska liability insurance—which protects other drivers in case of an accident. If you want to ensure your shiny new gift is protected, too, opt for more comprehensive plans.

MORE: Nebraska electric vehicle incentives

How to find affordable car insurance in Nebraska

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FAQs

Do you have to pay taxes on a gifted car in Nebraska?

You won’t need to pay taxes for any vehicle received as a gift in Nebraska.

Is it better to gift a car or sell it for $1 in Nebraska?

Selling a vehicle for a low price will still result in unforeseen taxes and fees. For the best results, follow the gifting process put in place by the Nebraska DMV.

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