, you’ll need to transfer the certificate of title, complete an application, and notarize a report of the donation as an authentic act before the new driver can hit the road.

Expect to spend at least $90 on the fees associated with gifting a car.
The Act of Donation form must be filed—and must be notarized.
You cannot gift a car that still has a lien (aka is not paid off).
Decide who will pay for the title transfer, registration, and insurance.

How to buy a car as a gift in Louisiana

Go together: If you’re planning to gift a car

straight from the dealership

, it might be easiest to bring the gift recipient with you so that they can be involved in the financing process. You cannot gift a car if you have not yet paid off its loan. In this case, the lienholder still owns the title and the lender can forbid you from transferring it.

With a loan: You can bring your giftee with you in the buying process so that their name can be on the loan and title. That way, there won’t be a legal hangup to deal with if you are unable to pay for the car you want to gift in full, upfront.

Without a loan: If you can pay for the car in full, you will need to fill out the seller’s portion on the back of the title and have the recipient fill out the buyer’s portion. You will mark the sales price as a “gift” and complete the steps outlined below.

Remember that

buying a car out-of-state

may have extra steps.

Key Takeaway You can’t gift a car unless you have the title in hand. If you need to take out a loan on the vehicle you want to gift, your best bet is to involve the recipient in the buying process so their name can be on the loan and title.

How to gift a used car in Louisiana

A car you already own: The easiest way to gift a car is to transfer ownership to a vehicle you already own. As long as you have paid off the loan or have managed to purchase the car in full, you can start the gifting process.

The most important step when transferring ownership of a vehicle is to ensure you have the certificate of title in hand to verify yourself as the current vehicle owner. Once that is settled, you can transfer the auto title to your family member.

Here are the steps you’ll need to take to gift a vehicle in Louisiana.

1. Discuss the future costs with your recipient

Beyond the purchase price, the car title transfer and car ownership comes with extra fees the recipient will need to shoulder.

Initial fees: To start, Louisiana has a $68.50 title transfer fee plus a $20 to $82 license plate fee, depending on the value of the vehicle. If the vehicle has a lien, there will be a $10 to $15 lien recording fee.

Ongoing fees: Louisiana requires a yearly smog test in some areas, which generally costs $18. Consider

car insurance

, maintenance, and gas expenses as well.

Here are some anticipated costs of Louisiana car ownership you should discuss with the car’s future owner:

Expense factor	Average cost
Title transfer	$68.50
Lien recording	$10 to $15
Lien release	$68.50
Handling fee	$8
Smog test	$18 per year
Car insurance	$2,371 per year (liability only) $3,712 per year (full coverage)
Maintenance	$774.56 per year
Fuel	$2,565 per year

Note that there is typically no sales tax or use tax charged on gifted vehicles in Louisiana.

2. Notarize an Act of Donation form

Even if there is no exchange of money in a gift transaction—and regardless of the selling price—you still need to record it legally.

What: In Louisiana, this can be done by filling out and notarizing the

Act of Donation of a Movable

form.

Why: Doing so acts as legal protection for both the gift giver and the recipient.

How: You may be required to have two witnesses to notarize this document in some areas. Check with your local

Office of Motor Vehicles (OMV

)—Louisiana’s version of the DMV—for specific instructions.

3. Transfer the title and register the vehicle

The title transfer process is the most crucial step in the gift exchange as it legally certifies that the recipient is the new owner.

Documentation: To complete a

Louisiana title transfer

, both you and the recipient will want to prepare these required documents to bring to your local OMV.

If the vehicle is already registered:

The certificate of title with a current odometer reading and signed by the gift-giver as the “seller” in the presence of a notary

The current vehicle registration certificate

Vehicle Application Form

(DPSMV 1799) to register and title the vehicle in the new owner’s name

A notarized lien release (if applicable)

A notarized

Act of Donation form

Odometer Disclosure Statement

if the vehicle is less than 10 years old

Proof of identification

Method of payment for the fees

If the vehicle is not

registered in Louisiana

yet, you will also need to bring:

The manufacturer’s statement of origin

Vehicle identification number

A notarized bill of sale

An Odometer Disclosure Statement

If the vehicle has an out-of-state title, you will also need to bring:

Proof of insurance that meets Louisiana requirements

A valid driver’s license or state ID

Wait! Prior to visiting the OMV, you will additionally need to submit a

Notice of Transfer of Vehicle

via the OMV’s website.

Get new plates: Finally, the gift giver must surrender the vehicle’s license plates at the OMV or mail them to the following address:

Office of Motor Vehicles

P.O. Box 64886

Baton Rouge, LA 70896

The recipient will receive new plates under their name, or they can transfer plates they already own for a $3 fee. If the vehicle is a truck or trailer, the recipient may keep the original owner’s plates.

Key Takeaway Transferring the title and registering the vehicle under the recipient’s name is the most pivotal part of the gift-giving process. Both you and the recipient will need to compile documents, prepare payment, and fill out some forms. The recipient will need to bring them to the OMV.

4. Purchase Louisiana liability insurance—or full coverage

Lastly, you need to have proof that the driver meets the state of

Louisiana’s minimum car insurance requirements

before the recipient can legally drive the vehicle. You can arrange with the insurance company to have coverage start the day the recipient officially takes the vehicle title.

Once you have secured this coverage, the title, and your registration, the recipient is finally

free to hit the road

with their generous gift!