If you’re a New York resident and you’re about to gift a vehicle like a car, truck, SUV, RV, or motorcycle to a family member, you’ll need to know all about transferring ownership. In this article we’ll walk you through how to transfer a vehicle title to a family member in the state of New York. The process is almost identical to a conventional title transfer and can be done rather quickly and easily online with eTags.

How To Gift a Vehicle in New York State

1. Gather Your Documents

The first thing you’ll need to do in order to transfer your vehicle title to a family member is to make sure you have all the necessary paperwork. You will need to have the following documents handy:

1. The original certificate of title
2. A bill of sale
3. Form DTF-802
4. Odometer Statement

Important notes to keep in mind:

1. The title must be undamaged and not bear any corrections or cross-outs. If your title has been torn, stained, corrected, or misplaced, you’ll need to order a duplicate title before you can proceed with your transfer.
2. A bill of sale should include these details:
   1. Make, model, year of the vehicle
   2. Sale date and purchase price
   3. VIN
   4. Full legal names of buyer and seller (or donor and recipient for a gift)

When the transfer is a gift, mark $0 or the word “gift” in place of a purchase price. In lieu of making up a handwritten bill of sale, the NY DMV provides this form which can help you include all the required information easily.

Transfer Your Title in New York

2. Sign Over the Title

For both a transfer where money is being exchanged and in the case of the vehicle being a gift, the signing over of the title is the same. The seller/giver of the gift must fill in the areas on the back of the title that are marked “Seller,” while the buyer/recipient must complete the sections marked “Buyer.” This is true whether or not there is an actual sale.

3. Complete the Form DTF-802

This form is a Statement of Transaction and acts as proof of the sale or gift. In the case that the transfer is a gift, this document will allow the recipient to avoid paying sales tax on the acquisition of the vehicle.

4. Remove License Plates

Before transferring ownership of a vehicle, remember to remove the tags!

These are the steps to take when transferring a vehicle to a family member in the state of New York.

FAQs

Who is exempt from paying sales tax on a gifted vehicle?

Only immediate family members can benefit from tax exemption in the case of a gifted car, truck, SUV, RV, or motorcycle. This means parents, spouses, children, or siblings only.

What do I do if I make a mistake when signing over my certificate of title?

Titles are not permitted to bear any types of corrections, erasures, or cross-outs. If you’ve slipped up, the title will not be accepted by the DMV. Apply for a duplicate title online with eTags! 

When transferring a vehicle in New York, can I transfer my license plate as well?

Unfortunately, not. You must remove your registration tags before giving your vehicle to your family member. A good way to think of it is this: plates belong to people, not vehicles!

Can I transfer my vehicle while there is a lien on it?

Generally, this is not allowed. All outstanding loans will need to be paid off before you can transfer your vehicle to a family member. If the loan has been satisfied, however, you can transfer ownership once the bank/moneylender has released the lien. Usually this looks like a lien release letter from the financial institution stating that the loan has been satisfied. Then, the bank will also relinquish the title to you (if they’ve indeed in been in possession of it) in order for you to be able to sign it over to your family member.

Can I drive my newly transferred vehicle right away after the title has been transferred.

Not quite yet. As a new owner, you’ll need to wait until the title transfer is complete –  meaning, once you’ve received the new title in your name from the DMV. Additionally, you must register the car in your name and affix the new tags to the vehicle before being allowed to drive the vehicle legally.

Remember, for all your title and tag needs, we’ve got a stellar team of experts ready to assist should you have any questions or need a hand during this process. Please don’t hesitate to reach out to us…because as always, at eTags, we’re here to help!