Buying A Car As A Gift – Here Are Some Things To Consider

By CarsFellow 8 Min Read

Have you ever considered surprising someone with an extraordinary gift? Well, a car can surely do that. Whether we are talking about a holiday, a birthday or anniversary, or just an ordinary day when wanting to show your loved one how much you appreciate them, giving them a car will make them feel special. However, this whole process of buying and choosing the right vehicle can be quite challenging since we are talking about such a huge responsibility.

Remember that it is not like giving someone a simple device as a gift, but a car, which implies much more attention and engagement. Before making such an important decision, you have to consider a lot of things, such as your and your giftee’s finances, car insurance, and taxes.

To make the purchasing process go smoother, make sure you follow these easy steps that will certainly help you in your quest for the perfect car:

Figure Out Your Finances

The first thing you need to consider when buying a gift, in general, is figuring out your budget. But when purchasing a vehicle, evaluating your finances becomes crucial, as a car implies much more expenses than other kinds of gifts. Keep in mind that you do not just go and buy the car, but you also have to pay the down payment, then the total amount, if choosing to buy it in full. If not, you would cover it in monthly payments.

Also, deciding upon an auto loan can be quite tricky. In this case, you can either co-sign with the recipient or finance the car in your name and become the loan holder. Careful though, if you opt for the first option, you will ruin the surprise you want to make for the person concerned, as they are the ones who acquire the loan and will be notified about it. Another option would be to add your giftee as co-signer after you had initially paid for the vehicle in your name but ensure in this case that they accept the new financing terms. Whatever your decision, you have to make sure that you can afford such an acquisition.

Make Sure You Know The Receiver’s Preferences

After setting yourself a budget, it is of the utmost importance to know what vehicle would be perfect for your loved one. Being familiar with their preferences and needs is essential, especially if you want your gift to be worth all the effort and money. You do not want to find yourself in an unpleasant situation where your giftee would just crack a smile and thank you. No, you want them to be astonished and immediately get behind the wheel. Keep in mind that you cannot simply return the car if it does not match the receiver’s taste.

So, we recommend doing some reconnaissance before purchasing a vehicle for someone and ensuring you give them a car that suits their preferences. For example, carry on conversations in which you ask them about their favourite makes and models and their desired colour and size since they play such a decisive role when choosing the right vehicle. You do not have to ask them directly – try to drop some hints that could help you discover the features they are interested in instead.

You can also schedule a test drive to show them what a new car would feel like, especially if you purchase a car, let us say, for a teenager who just passed their driving test.

Do Not Wait Until The Last Minute

It is not recommended to postpone your gift order, especially when buying a gift of such magnitude. Firstly, the sought model could be out of stock, and in this case, it is crucial to place your order much earlier to make sure it arrives by the expected date. Secondly, you should avoid shopping at busy times such as December because the approaching of Christmas finds more people in the quest for a car and the prices will be higher. So, it would be best to shop early to avoid paying more for a car than you would do for the rest of the year.

Packaging is also important when presenting your gift car to your loved one. If you have in mind wrapping your car with one of those giant red bows, it would be helpful not to expect the dealership to do so because most dealerships have limited stocks or do not sell these kinds of wraps at all. So, make sure you order the desired gift bow in advance and avoid any packaging problems.

Transfer Ownership Of The Vehicle

One of the essential steps when buying a car for someone else is ensuring you properly transfer ownership. The simplest method of doing that is purchasing the vehicle in your name and then making the transfer. That means an auto loan is out of the question in this case. Anyway, releasing ownership into the receiver’s name is by no means an easy job. You have to consider your state’s laws when transferring the title to the person who will receive the car, as each state may have different procedures and rules.

Moreover, you need to pay attention to the car insurance and vehicle tax, as it is crucial to have the car insured and taxed before driving it. And keep in mind that when switching titles, the vehicle tax cannot be transferred, so your giftee will be the one who will pay it. Some states also have a gift tax, so make sure you are aware of all the procedures a change of ownership implies and inform the right institution when doing so.

Ensure You Keep it Secret

As we already mentioned, buying a car on loan may diminish the chances to surprise the receiver, but if you choose to pay it in full, you should not have such problems. Anyway, make sure you announce to the dealership that it is going to be a surprise and not notify the recipient about the future acquisition. If possible, inform as few persons as possible about the gift to avoid any spoiler alert.

If you are looking for the perfect gift car but do not know what all this process means, we hope our tips make your job easier and surprise your loved one with a one-of-a-kind gift.

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