Gifting a car to friend (not family) (vehicle, best, sell)

[IShootNikon]

I am in Colorado.

We want to gift a car to a friend. It is a 20 year old Toyota Avalon so not much value.

We just want to help him out. No money will exchange hands.

What is the easiest way to do this to protect all parties.

Will we simply put GIFT on the title. Should we also create a "Gift" bill of sale?

I've sold cars before but have never gifted one

[markg91359]

A written agreement signed by both parties in which you sell it to him for $1. Actually have him pay you the dollar too. That is a legally binding contract.

[IShootNikon]

Originally Posted by markg91359

A written agreement signed by both parties in which you sell it to him for $1. Actually have him pay you the dollar too. That is a legally binding contract.

What about a gift

[usafracer]

Both of you go to the DMV and change the title and the registration from your name to his. Simple easy!

[HarborRat]

Many state's DMVs frown upon writing "gift" on the title if it is not family. They may let you do it but he might get a bill in the mail later for taxes due on the blue book value (happened to me in NJ). Save yourself some possible hassle and put $100 on the title, and have a bill of sale saying the same with something like "As-Is, not running" written on it. Pay the $7 in tax and forget about it.

[IShootNikon]

Well the car is probably worth $1k. 1995 Toyota Avalon with 270k miles

So are you saying it is better to go with $100 bill of sale vs a gift?

[Bummer]

I believe the primary issue with vehicle "gifting" is the frequent attempts to avoid State Sales Tax for those living in states where the tax is calculated on the sales price.

Being up-front with a DMV Representative is probably the best advice / solution.

Good Luck

[Electrician4you]

Write down you sold it for $300. He will have to pay use tax on $300

[IShootNikon]

Originally Posted by Bummer

I believe the primary issue with vehicle "gifting" is the frequent attempts to avoid State Sales Tax for those living in states where the tax is calculated on the sales price.

Being up-front with a DMV Representative is probably the best advice / solution.

Good Luck

Thing is I'm not circumventing anything. There will be no money transferred in this transaction

[43north87west]

The best way to protect all parties is to have a signed, as-is bill of sale for $1. Even if you have to give him $1 to pay you with.