How To Buy A Car For Someone May 2026

Have a folder ready with the bill of sale, the owner's manual, and a temporary registration tag.

In most states, you must pay sales tax when you buy the car. When you "gift" it to the recipient later, they may be exempt from paying sales tax again if you provide a "Gift Affidavit" (rules vary by state). how to buy a car for someone

As of 2024, you can gift up to $18,000 per person without reporting it to the IRS. If the car costs more, you’ll need to file Form 709, though you likely won't owe taxes unless you've hit your lifetime exemption ($13+ million). 4. Insurance (The "Before You Drive" Step) A car cannot legally leave the lot without insurance. Have a folder ready with the bill of

Many dealers are happy to help with a "reveal." They might provide the giant bow or even deliver the car to the recipient's house for a small fee. As of 2024, you can gift up to