Gifting a Car in Kentucky

You can gift a car in Kentucky by filling out the assignment on the back of the title and marking the price as “gift.”
Written by Sarah Williams
Reviewed by Kathleen Flear
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The process for gifting a car in Kentucky is similar to selling your vehicle. While you will avoid some fees associated with a private sale, you still have to pay the sales tax and fees for the title transfer and registration.
One way to ensure your gift is well received is to iron out all the logistics in advance. There’s no surer way to dampen the excitement of a new car than by piling on a mound of unexpected paperwork and fees. 
Each state has its own process for gifting a vehicle. Here to help you navigate the ins and outs of gifting a car in Kentucky is
Jerry
, the
car insurance
comparison app and licensed broker. Plus, you'll get some tips to find the best
Kentucky car insurance
.

How to buy a car as a gift in Kentucky

The easiest way to give someone a new car is to bring them with you to the dealership. That way, they can be involved in the selection and financing decisions. 
Going this route allows you to ensure there are no
liens
on the vehicle. Any existing liens must be paid off before you can transfer the title. 
Key Takeaway Bringing your giftee directly to the dealership is a great way to include them in the decisions and ensure there are no existing liens on the vehicle. 
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How to gift a used car in Kentucky

If you’re looking to offload one of your current vehicles or want to snag the best deal on a used car, you’ll be looking at a different set of steps. Let’s take a look at how to gift a used car in Kentucky. 

Negotiate the terms of the gift with your recipient

Before you dive into the various forms and inspections, you’ll want to sit down with your recipient and discuss the terms of your gift. It’s important that everyone is on the same page about who is paying for what: the title transfer, car maintenance, insurance, fuel, etc.  
In Kentucky, a title transfer fee is $9 plus an additional $22 if there are any loans on the vehicle. There’s also a $2 fee for each signature you have notarized by the County Clerk’s Office. You can use the DMV’s
fee calculator
to estimate other possible fees associated with the vehicle gift. 
You will also have to take sales taxes into account. For a gifted car in Kentucky, the taxable value is determined by the average trade-in value listed by the Official Used Car Guide. There is also a 6% usage tax for vehicles that have been transferred. If you are related to the recipient, you may be exempt from the usage tax. 

Purchase Kentucky liability insurance—or full coverage

Regardless of who is footing the bill, you’ll need valid Kentucky insurance coverage before you can transfer the title. 
If you want to save money on car insurance in Kentucky, the
Jerry
app is an excellent place to start. A licensed broker, Jerry does all the hard work of finding cheap quotes from the top name-brand insurance companies. 
Jerry
was helpful every step of the way. They saved me over $100 a month for insurance in Kentucky.” —Jim F.

Transfer the vehicle title

The most essential step in gifting a car is the title transfer. Transferring the title to your recipient is what officially gives them ownership of the vehicle. 
To complete a title transfer in Kentucky, go to your local Kentucky county clerk’s office together. Make sure to bring:
  • Current vehicle title certificate
  • Payment for the various fees
  • Proof of a valid Kentucky insurance policy
  • A valid form of photo ID
Remembering all of your appropriate documents will help prevent unnecessary fees and delays.
If you are gifting the car to your child or a charity, you will fill in the assignment on the back of the title and have it notarized at the clerk’s office. In the purchase price section, write “gift.” You will also fill out the Motor Vehicle Usage Tax Multi-Purpose Form to account for the sales tax.  

Make a record of the gift with a bill of sale

Yes, that’s right—even if it’s a gift, you will still want to write up a bill of sale. The bill of sale acts as a legal record of your transaction and protects you from any potential legal consequences in the future. 
Make sure that both you and your recipient sign the bill of sale, signifying that you both agree to the terms of the gift. 

How to find affordable car insurance in Kentucky

Whether you’re adding an insurance policy to your gift bundle or are looking to save money on your coverage,
Jerry
can help any car owner in Kentucky find the lowest available rate on car insurance. 
Even after Jerry finds you great
car insurance
at the lowest price, the savings keep coming. Before every policy renewal period, you’ll be presented with new competitive quotes, meaning you’ll always have the best coverage at the best price. 
If you want to switch policies, that’s fine! Jerry can help cancel your old policy. And the cherry on top? Jerry users save an average of more than $800 a year. 
“I was a new driver looking for insurance and scared about expensive payments. But then I found
Jerry
! They saved me almost $150/month.” —Garret I.
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FAQs

No—Kentucky removed its requirements for a smog certification in 2005. They do, however, have eco-friendly driver incentives. If you own a hybrid, electric car, plug-in hybrid, alternative fuel vehicle, or a vehicle run off of diesel, you are eligible for a tax break in Kentucky.
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