can be a little tricky. Before you give a car as a gift, you’ll need to make sure you file the right paperwork and that your car passes the required inspections.

Gifting a car in Missouri is fairly straightforward, but it's recommended you bring the recipient to the dealership and include them in the buying process.
Whether you’re gifting a new car or a used vehicle, follow the same process of negotiating terms and writing a bill of sale.
Complete the title transfer and
registration process
at the local Department of Revenue license office.
Factor in the car’s future costs, like fuel, maintenance, and
car insurance
.

How to buy a car as a gift in Missouri

The easiest way to gift a car in Missouri is to bring the recipient to a dealership and have them sign for the car. You can always pay for the vehicle yourself, but having the recipient sign for the car could save you piles of paperwork.

Of course, if you’d rather keep the whole thing a surprise, you can always buy the car yourself and transfer it to the recipient. When you buy a car as a gift in Missouri, it’s actually no different than buying a car for yourself, but you’ll need to have the car inspected and transfer the title before you can officially give it away.

This means: You can’t gift a car that has a

lien

on it to a new owner. So before gifting the car, you’ll need to ensure it’s completely paid off and lien-free.

Transferring your gift car in Missouri

Whether you’re buying a new car as a gift for a family member or giving a car you already own, you’ll need to go through a transfer process to make sure everything goes smoothly (and legally!).

Negotiate the gift with your recipient

It goes without saying that car ownership is expensive. Aside from the upfront purchase price, car owners need to pay for gas, maintenance, repairs, car insurance, and yearly registration.

That said, you should make sure your gift recipient is in a sound financial position to own a car before you gift it. If they are, it’s also important to ensure they know exactly what you’ll be paying for and what you won’t be.

Here’s a breakdown of the fees you’ll need to pay:

Fee	Cost
Car title fee	$14.50
Registration fee	$12
Title transfer fee	$11

Vehicle gift transactions are exempt from Missouri car sales tax, so that’s one expense you won’t need to negotiate.

Record of the gift with a bill of sale

Yes, this is a gift, but a bill of sale creates a record of the transaction. To document the gift, The state of Missouri requires all gifters to fill out either a

Bill of Sale (Form 1957)

or a

Notice of Sale (Form 5049)

To ensure both you and your gift recipient have the information you need, make copies of the bill of sale for both your records.

Transfer the vehicle title

Finally, you’ll need to transfer the title to its new owner to verify the car has been gifted. To do so, you need to provide the new motor vehicle owner with the following:

Properly signed Certificate of Title with the word “GIFT” written in the purchase price/sales price area (do not use a sale price of $1)

Complete the odometer disclosure statement on the back of the title with a current odometer reading

If the vehicle has an out-of-state title, you will need to complete the owners and vehicle/unit information sections of the

Owner Out-of-State title Request (Form 5834)

, which will allow the gift recipient to apply for a new title in Missouri

A safety inspection certificate and proof of vehicle identification number (VIN) less than 60 days old

An emissions inspection not more than 60 days old (emissions testing only required for recipients living in St. Louis City or Jefferson, St. Charles, or St. Louis County)

General Affidavit (Form 768)

or a written statement indicating the motor vehicle is a gift

Lien Release (Form 4809)

, or lien release letter from a lienholder, if applicable

Note: If this was a vehicle previously registered to you, be sure to keep the license plates.

Once you’ve provided the new owner with all the necessary documents, it’s time for them to head to their local Missouri Department of Revenue License Office (MO DOR) to complete their vehicle registration. In addition to the above documents, they’ll need to bring:

Valid proof of identification, such as a driver’s license

Proof of insurance

Completed

Application for Missouri Title and License (Form 108)

Payment for registration fees and fees for new plates

Remember: Your gifted car qualifies for sales tax exemption, but you will still be responsible for paying Missouri property taxes on your new vehicle.

Purchase Missouri liability insurance—or full coverage

Of course, you will need to make sure the gifted car is covered by good car insurance. To legally register the car and get it completely road-ready, the insurance policy will need to meet

Missouri’s minimum requirements for liability coverage

Plus, you or the new owner may want to invest in a

full coverage policy

with collision and comprehensive coverage to avoid paying out of pocket in the case of an accident.

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FAQs

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

Missouri does not require you to pay tax on a gifted car, but you should report the transaction to the IRS if the car’s value is more than $15,000.

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

Missouri’s gifting process is in place for a reason. The state specifically requests that gifters do not list $1 in the sell price section of the original title.

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