Transferring Vehicle Ownership: A Step-by-Step Guide
Beyond a straightforward purchase, there are several situations that call for updating a car's title, and each one must be processed through the state's motor vehicle department.
By Reese Campbell
When you need to change who owns a car, the process involves completing a vehicle title transfer and filing it with the motor vehicles agency in your state.
Purchasing a Vehicle
In most states, a bill of sale is required, and it should include all the specifics of your transaction. Certain states, like California and Florida, mandate their own specific form, while others will accept a general version.
Receiving a Car from a Relative
Even when the vehicle is a gift, you will still need all the same title transfer paperwork as a typical purchase. However, in most states, transfers between family members typically avoid sales tax. Qualifying relatives include spouses, parents, children, grandparents, grandchildren, siblings, and partners.
Getting a Car from Someone Unrelated
The process is generally the same as for family gifts, and sales tax is usually not required.
Inheriting a Vehicle
Typically, you must give the motor vehicles agency proof of your identity and your connection to the deceased owner, along with a statement of facts and other documents such as a will, death certificate, or court records.
When a Lease Ends or a Loan Is Paid Off
If you have a loan or lease on your car, the finance company appears on the title as the lien holder. The finance company normally manages the transfer, and you will get a lien-release document by mail. You must then submit that document to your local motor vehicles agency office, either in person or by mail.
Changing Your Name
You will need proof of the name change through an acceptable legal document, such as a birth certificate, marriage certificate, divorce decree, or court order, to present to your local motor vehicles agency office.
