Gifting a Car in Nevada

Gifting a car in Nevada follows the same general process as a private party vehicle sale, but the transaction is tax-exempt.
Written by Max Werner
Reviewed by Kathleen Flear
background
To gift a vehicle in
Nevada
, follow the transfer process as you would when selling a vehicle—make sure to write “gift” under the sales price section of the transfer form. Gifting a car can help you avoid the taxes and fees associated with a private sale. 
  • Gifting a car in Nevada follows the same general process as a private party vehicle sale, but the transaction is tax-exempt.
  • Bringing the gift recipient to the dealership to help pick out the car and get involved in financing can help streamline the process.
  • Be sure to negotiate additional costs of the fits, such as title fees, license plate fees, vehicle inspection fees, and
    car insurance
    with the recipient.
  • To complete the gifting process, head to your local Nevada DMV office to transfer the title to the new vehicle owner.

How to gift a car in Nevada

If you’re gifting a new car to a close relative, family member, or a first-time car owner, consider taking the recipient with you to the dealership. Not only is this helpful for walking them through the
car-buying process
—but it’s also the easiest way to gift a car. 
Other than a wonderful bonding experience, a trip to the dealership can ensure you settle on a car that suits your giftee. When choosing the vehicle you want to gift, consider these factors:
  • The vehicle's price
  • Cost of maintenance
  • Reliability
  • Style
When gifting a new vehicle, make sure to buy the vehicle in full. You’ll be unable to gift a
used vehicle with a lien
Key Takeaway: Even if the car is a gift, consider bringing the recipient to the dealership to streamline the process. 
Maybe you’re looking to surprise someone with that ribbon-on-the-driveway moment. The best method is to buy the car beforehand and then transfer the vehicle title—though this option comes with additional hassles.
Regardless of whether it’s a new car or a seasoned stallion, ensure that all loans are paid off before beginning the process. The steps will be the same for gifting any car.

Negotiate the terms of the gift with your recipient

Negotiating price may not be on the top of your mind when preparing to gift a vehicle—but no car comes without additional costs. Because of additional costs, it’s good practice to sit down with the car recipient and discuss vehicle payments.
Here’s a table of the costs you should discuss with your recipient:
Cost
Nevada average
Title transfer fee
$29.95
Vehicle registration fee
$28.25
Insurance
$1,138 (
liability
only)
$2,403 (
full coverage
) per year
Maintenance
$372 per year
Fuel
$2,471 per year

Record of the gift with a bill of sale

Your vehicle might be a gift, but the state of Nevada still requires you to keep a Bill of Sale for your own records and to officially transfer ownership of a vehicle to the gift recipient. This is
Form VP104
. Make sure both you and the recipient sign the document, certifying you agree to the terms.
While this additional form may seem like another hurdle, a bill of sale can protect you down the road. If the gift is involved in an accident, this document exempts you (the previous owner) from legal repercussions.

Transfer the vehicle title

A successful Nevada title transfer completes the transaction, making the gift official. 
To begin the title transfer process, sign over the car’s title to the new owner. Make sure to indicate that the car is a gift in the appropriate box. 
Bring the following to your local Nevada Department of Motor Vehicles (DMV) office:
  • Signed Nevada certificate of title with completed odometer reading
  • Registration form (
    Form VP-222
    )
  • Lien release (if applicable)
  • Proof of identity (such as a valid driver’s license)
  • Proof of emissions test
  • Payment for processing fees
From there, the local DMV office will help you complete your transfer and register the vehicle in the new owner's name. You’ll be exempt from the sales taxes that accompany private vehicle sales. 
For more information on taxes and necessary documents, explore the
Nevada DMV website
.

Purchase Nevada liability insurance—or full coverage

In the Silver State, you’ll need a minimum of $50,000 worth of liability auto insurance. Regardless of who's paying, ensure that the gifted vehicle is covered with an appropriate insurance policy before hitting the road. 
While liability car insurance is a necessity for the giftee, additional coverage will ensure that driving their new gift doesn’t feel like a gamble.
“I was worried that adding my 16 year old daughter would spike my insurance rates. I called and spoke to Tim, who was pleasant to work with and got me new rate savings.
Jerry
really helped me save thousands.” —Marshall D. 
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FAQs

No—gifting a car will result in no additional taxes under Nevada law.
If you’re not planning on actually selling a vehicle for a reasonable price, the gifting system is your best bet. This will exempt you from associated taxes and fees and correctly document the transfer.
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