This article is brought you by Vietwheels.com, Vietnam’s leading online marketplace to buy and sell cars.
The information in this article does not constitute as financial advice or any other sort of advice, and you should not treat any of the content as such. A qualified professional should always be consulted before making any financial decisions.
Whether you have a child graduating from school or a relative in need of a vehicle, there may be a time in your life when you’d like to gift a car to a beloved family member. It’s important to know that gifting a car is different than simply buying a car. Thanks to Vietwheels.com, we have prepared some useful tips for gifting a car to a valuable family member discussed in this article below.
1. Consider the giftee’s financial situation
First, you’ll want to make sure that the giftee can afford to pay for insurance, gas, maintenance and repairs. Giving a car as a gift is a financial responsibility for both parties and the giftee will need to pay for these ongoing costs mentioned above. If they can’t afford these common car ownership expenses and you don’t want to cover them yourself and you may want to reconsider gifting them a car.
2. Choose what car are you are gifting
The next step is to determine what type of car will you be gifting. For example, is it an existing family car you are gifting or are you intending to purchase a brand new or used car for your family member? If you are planning to purchase a used car to give away, you may be interested in our article Should I Choose A Used Car or Reconditioned Car?
3. Own the car outright
Make sure the car you are about to hand over is owned by yourself outright. You can’t gift a car or transfer the ownership officially if you don’t own the car outright. If you have an outstanding balance on a car loan, you will want to pay this off before gifting your vehicle. You’ll need to own the car outright with no outstanding balance to progress to the next step which is transferring the ownership title.
4. Draft up the formal paperwork
Once you own the car outright, start the formal paperwork to transfer the ownership of the vehicle to the family member. Start by writing up a bill of sale and make sure it’s signed by you and the giftee. Your bill of sale should include:
· Make and model of the car
· Purchase price of the car
· Vehicle Identification Number (VIN)
· Odometer reading
To officially release ownership of your car to the person you’re gifting it to, you should transfer the ownership title officially. Complete the title forms accurately and check with the motor registry you have completed all of the necessary steps correctly.
5. Insure the giftee
Last but not least, take out insurance for the new owner. You may to do this especially if you are gifting your vehicle to a child. This can be done by calling an insurance agent and getting a policy in the new owner’s name. If the family member already has a car, it is pretty simple. If this is the person’s first car, there will be more information required to get an insurance policy.
You’re now ready to hand over the set of keys to your beloved family member! We hope that this article has helped you find tips for gifting a car to your family member. If you found this article useful, please visit our other News and Reviews. On behalf of the VietWheels team we wish you all the best in finding your next dream car in Vietnam.
