Questions about transferring car title (sales, car insurance, loan)

[danona]

Hi, my parents are going to gift one of their old cars to me and I have to help them do it. I've been looking over DMV's site but the process is new and overwhelming to me and I want to verify a few things. Can anyone help me out??

1. It sounds like when I'm getting the title transferred at the DMV, I can register the car under my name at the same time. Is this correct?
1. Does the license plate need to be changed after the transfer?
2. Do I need to have my own car insurance? As of now I'm under my parents' insurance.

Any help appreciated!!

[HudsonCoNJ]

Originally Posted by danona

Hi, my parents are going to gift one of their old cars to me and I have to help them do it. I've been looking over DMV's site but the process is new and overwhelming to me and I want to verify a few things. Can anyone help me out??

1. It sounds like when I'm getting the title transferred at the DMV, I can register the car under my name at the same time. Is this correct?
1. Does the license plate need to be changed after the transfer?
2. Do I need to have my own car insurance? As of now I'm under my parents' insurance.

Any help appreciated!!

1. It sounds like when I'm getting the title transferred at the DMV, I can register the car under my name at the same time. Is this correct? Yes
1. Does the license plate need to be changed after the transfer? I can't remember, but I'm sure the DMV will tell you when you go do the title transfer.
2. Do I need to have my own car insurance? As of now I'm under my parents' insurance. Insurance needs to be under the registered owner's name



I remember when I was in your shoes way back when I was 17 and my dad gave me his old Buick, we just said I bought the car from him for $500 and I paid the $30 something in sales tax. If you say your parents are gifting you the car I think it gets a little more complicated so for an older car just say you bought it from them for a small amount.

[MaverickDD]

HudsonCoNJ is correct. A few additional things:
• Although you can take title without your own insurance, you will need to arrange for insurance before you register the car because your insurance company and your policy number are required for the registration.
• The license plate cannot be transferred to a new owner.
• Have your parents give you a gift letter stating that they are charging you nothing for the car and that they are gifting it to you. Make your relationship clear. MVC recognizes this. There will be no sales tax.* (* — This assumes that the car is debt-free. If not, you'll pay sales tax on the transferred loan balance because it is deemed a "sales price".)