Taking over ownership of out of state car (for sale, insurance)

[ThirdRail]

I have been borrowing a car for s few months. It is insured out of state and the insurance is due soon.

The owner is family, it is an older car which no one uses but the only one I have. I have the title. The most sensible recourse seems to be to register it in NC and switch ownership to me and change the plates.

I have never done this before and I don't know the process. I will check with NCDMV but this seems like there are multiple steps involved with timing considerations for each.

As I see it, I need to:
1. Get local insurance before the existing insurance runs out
2. Register it in NC and get NC plates and pay the property tax
3. Lastly, return the current plates to stop the current insurance.

I have some questions, such as:
4. Do I have the steps and order correct?
5. Can I do the plates etc. all on one day?
6. How much lead time do I need to do everything as I need to drive that car every day?
7. Is it possibile to leave the current ownership but re-register the car here in NC and just switch the pates and insurance but the title remains with the owner?

Thanks for any guidance anyone here could help with on this.

[QuickJoin]

1. Get insurance
2. Get your license
3. Register car
4. Return old plates (Or whatever, my old state didn't want plates back, some do)

DMV is really fast here, you can very easily do 2 and 3 in one day. You'll need to bring proof insurance, which you get any online insurer immediately.

I think you may need to be the owner, but 100%. Depending on relationship you may be able to gift it across state lines and avoid some of the taxes.

[ThirdRail]

Thank you.

I have a NC license.

The gift idea sounds like a good one.

[ThirdRail]

Actually, I don't need to take ownership, but as I am currently the only one driving it and will be for the foreseeable future, I need to insure it in NC and, if I am correct, have to register it here.

Is that possible without actually owning it? My family are letting me use the car as long as I need it.

[BC1960]

Originally Posted by ThirdRail

Actually, I don't need to take ownership, but as I am currently the only one driving it and will be for the foreseeable future, I need to insure it in NC and, if I am correct, have to register it here.

Is that possible without actually owning it? My family are letting me use the car as long as I need it.

If the car is titled in another state, you can't register it in NC (i.e. get NC license plates).

[JONOV]

Originally Posted by ThirdRail

Actually, I don't need to take ownership, but as I am currently the only one driving it and will be for the foreseeable future, I need to insure it in NC and, if I am correct, have to register it here.

Is that possible without actually owning it? My family are letting me use the car as long as I need it.

I don't think you can insure it without at least being a co-owner of the car. Insurance companies don't want to insure you if you don't have an interest in the car. Now, I understand you need the car to get to work and class and would be in a bind without it, but on paper, legally, you don't have a financial interest in the car.

If they don't want to sign the car over to you, then offer to pay them for the registration and insurance for the next year and don't change anything.

From a practical perspective, is this your parent's/grandparent's car? Would they be willing to let you pay them to insure and register it another year in your home state? If you get pulled over, just say that you're borrowing it. Are you in the Military or in School? That gives you all the more gray area.

NC requires the sale to be Notarized. Not a big deal but you do have to go to the UPS store or a bank or somewhere with a Notary with the person on the title.

You need:

• YOUR name & address
• Date of sale or date of delivery
• Seller's signature & hand printed name
• Odometer reading (if required)
• Notarization
• Damage Disclosure Statement

All this is basically done on the back of the title. But, since it has to be notarized, you have to have the owner with you.

Gifting or Selling really doesn't make any difference. When you go to register it, they plug in age/mileage and tell you how many pounds of flesh you owe the state.

So yeah, find insurance, get your NC license if you don't have one, get the car registered in your name.

I don't think you really have to send the plates back for anything, but that could be a rule where the car's registered for them to stop taxing the owner.

NC really hammers you on vehicle taxes so that's also a consideration.

[wake74]

Just a minor correction to the info above, NC does NOT require notarization on title transfer of an out of state title, UNLESS that state has a notary requirement on title transfer. Most states don't. It will be obvious on the existing title if that is a requirement.

Returning plates is a state by state issue, and can not be answered with the information provided. It can be very important in some states, with financial consequences if you don't. Ie, in Florida if you drop the Florida insurance on a vehicle because you moved to NC, and didn't bother to return the plates........that was an expensive lesson.

[JONOV]

Originally Posted by wake74

Just a minor correction to the info above, NC does NOT require notarization on title transfer of an out of state title, UNLESS that state has a notary requirement on title transfer. Most states don't. It will be obvious on the existing title if that is a requirement.

Returning plates is a state by state issue, and can not be answered with the information provided. It can be very important in some states, with financial consequences if you don't. Ie, in Florida if you drop the Florida insurance on a vehicle because you moved to NC, and didn't bother to return the plates........that was an expensive lesson.

You are correct but I've also seen it cause delays/hassles for the title transfer. Friend bought a car in SC and it wasn't notarized (didn't have to be) and it was a pain in the butt at the DMV...said it took a lot longer than it should have and could have been solved driving to a bank or UPS store or whatever.

[ThirdRail]

Firstly, thanks for all the advice and comments. This does seem more complicated than originally thought.

For example, although I have the title in my possession, in preparation for me to take over ownership eventually, it is signed for sale but not notarized. The seller/family member lives out of state and is far away. We will not be in the same place anytime soon.

Originally Posted by JONOV

If they don't want to sign the car over to you, then offer to pay them for the registration and insurance for the next year and don't change anything.
I agree, that would be easiest, I thought that insurance companies don't want to insure for use out of state for long periods of time, but I could be wrong.

I will at some point need to take ownership but I am not under pressure to do it. It could be gifted, sold, or we could become co-owners.

I am unemployed and I can't afford my own car right now so I am happy to borrow or buy this one for $1 or whatever works cheaply, they don't want my money and it is an old car over 10 years old.

From a practical perspective, is this your parent's/grandparent's car?
yes

Would they be willing to let you pay them to insure and register it another year in your home state? If you get pulled over, just say that you're borrowing it.
yes, if the insurance company would allow it

Are you in the Military or in School? That gives you all the more gray area.
no

Thank you again, I hope I can work this out without having to go back to the origin state.

[QuickJoin]

Originally Posted by JONOV

From a practical perspective, is this your parent's/grandparent's car? Would they be willing to let you pay them to insure and register it another year in your home state? If you get pulled over, just say that you're borrowing it. Are you in the Military or in School? That gives you all the more gray area.

NC requires the sale to be Notarized. Not a big deal but you do have to go to the UPS store or a bank or somewhere with a Notary with the person on the title.

You need:

• YOUR name & address
• Date of sale or date of delivery
• Seller's signature & hand printed name
• Odometer reading (if required)
• Notarization
• Damage Disclosure Statement

All this is basically done on the back of the title. But, since it has to be notarized, you have to have the owner with you.

Not necessarily true. I've gotten vehicle transferred at NC dmv that required notary WITHOUT the seller present.

I wouldn't worry about what state it's actually registered in as much. Some police might give you issue, but the biggest thing you need is it to be registered somewhere, and to have insurance.