How to Use a Vehicle Gift Affidavit When You Give a Car Away

What a vehicle gift affidavit does

A vehicle gift affidavit is a legal document that proves you gave a car, truck, or motorcycle to someone else without payment. South Carolina's Department of Motor Vehicles uses it to transfer the title when there is no sale price involved. You sign it under oath, stating that the vehicle was a gift and not a sale.

The person receiving the vehicle needs this document to register it in their name. Without it, the DMV will assume money changed hands and may assess tax based on the vehicle's fair market value. A gift affidavit tells the DMV that no tax is owed because no sale occurred.

You complete the affidavit before the title transfer happens. It becomes part of the paperwork the new owner submits to the DMV along with the signed-over title.

Key Takeaways

• A vehicle gift affidavit is required by South Carolina's DMV when you give a car to someone without selling it.
• Both the giver and receiver must sign the affidavit in front of a notary public; it cannot be signed alone.
• The document states under oath that the vehicle was a gift with no money exchanged.
• The receiver uses the signed affidavit along with the title to register the vehicle in their name at the DMV.
• Falsifying a gift affidavit to avoid sales tax is fraud and can result in criminal charges.

When you need a vehicle gift affidavit

You need a gift affidavit whenever you transfer ownership of a vehicle to someone else as a gift rather than a sale. This includes gifts to family members, friends, or anyone else. The requirement applies whether the vehicle is paid off or still has a loan on it.

If you are selling the vehicle, you do not use a gift affidavit. Instead, the buyer and seller complete a bill of sale, and the DMV collects sales tax based on the purchase price.

Some people mistakenly believe that gifting a vehicle to a family member avoids the need for paperwork. It does not. South Carolina law requires the affidavit so the DMV can process the title transfer correctly and determine whether tax is owed.

How to get and complete the form

South Carolina's DMV provides the vehicle gift affidavit form. You can download it from the DMV website or pick up a copy at any DMV office. The form is also called an "Affidavit of Gift" in some DMV materials.

The form asks for basic information: the vehicle identification number (VIN), the year, make, and model of the vehicle, the current owner's name and address, and the new owner's name and address. You will also fill in the date the gift was made.

Both you (the giver) and the person receiving the vehicle must sign the form in front of a notary public. A notary verifies your identities and witnesses your signatures. You cannot sign it alone and have someone else sign it later. The notary will stamp and sign the document after both parties have signed.

Bring a photo ID to the notary appointment. The person receiving the vehicle should also bring their ID. Many banks, credit unions, and UPS stores offer notary services for a small fee, usually between five and fifteen dollars.

What happens after you sign

Once both of you have signed the affidavit in front of a notary, the document is complete. The person receiving the vehicle takes it to the DMV along with the original title (signed over by you) and their own paperwork to register the vehicle.

The DMV will review the affidavit and the title. If everything is in order, they will process the title transfer and issue a new registration in the new owner's name. No sales tax will be assessed because the affidavit documents that no money changed hands.

The new owner will receive their registration and a new title certificate showing them as the owner. This process typically takes a few business days to a few weeks, depending on how busy the local DMV office is.

What you need to bring to the notary

Bring the blank vehicle gift affidavit form, a photo ID, and the VIN of the vehicle. You can find the VIN on the title, on the vehicle's dashboard, or on the insurance paperwork.

The person receiving the vehicle should also bring a photo ID. If they cannot be present, you will need to ask the notary whether they can notarize a signature that is not made in front of them. Some notaries offer this service, but policies vary.

Have the vehicle's year, make, model, and current owner information ready. This information goes on the form, and having it written down ahead of time speeds up the process.

What not to do: falsifying a gift affidavit

Do not sign a gift affidavit if money actually changed hands. Signing a false affidavit to avoid paying sales tax is tax fraud. South Carolina law treats this as a criminal offense, and the penalties include fines and possible jail time.

The DMV and the South Carolina Department of Revenue have systems to detect suspicious patterns. If a vehicle is reported as a gift but the new owner immediately sells it, or if multiple vehicles are transferred as gifts in a short time, the state may investigate.

If you are unsure whether a transaction counts as a gift or a sale, contact the DMV before signing. It is better to ask than to sign something false and face legal consequences later.

If the vehicle has a loan on it

You can gift a vehicle that still has a loan, but the lender must agree. Contact your lender and explain that you want to gift the vehicle. They will tell you what steps to take.

In most cases, the loan must be paid off before the title can be transferred to the new owner. The lender holds the title as security for the loan, so they have to release it. Once the loan is paid off, the lender will send you the title, and you can then sign it over and complete the gift affidavit with the new owner.

If the new owner will be taking over the loan payments, the lender may allow the transfer to happen while the loan is still active. This is less common and depends on the lender's policies. Ask your lender about this option before you proceed.

Frequently Asked Questions

Can I sign the gift affidavit without the person receiving the vehicle present?

No. South Carolina law requires both the giver and the receiver to sign the affidavit in front of a notary at the same time. The notary must witness both signatures. If the new owner cannot be present, you will need to reschedule for a time when both of you can meet at the notary's office together.

What if I lost the title to the vehicle I want to gift?

Contact the DMV to request a duplicate title. You will need to fill out a form and pay a fee. Once you have the duplicate, you can sign it over and complete the gift affidavit. The DMV can tell you the exact steps and fees when you call or visit.

Does the new owner have to register the vehicle right away?

South Carolina law requires the new owner to register the vehicle within a certain timeframe. Check the DMV website or call for the exact deadline. Registering promptly protects the new owner legally and ensures they have valid insurance coverage.

Can I gift a vehicle to someone who does not live in South Carolina?

Yes, but the new owner will need to register it in their own state. They should take the signed title and the completed gift affidavit to their state's DMV. Each state has its own registration process, so the new owner should check their state's requirements before coming to South Carolina's DMV.

What if the vehicle is in both my name and someone else's name on the title?

Both owners listed on the title must sign the gift affidavit and the title. If you cannot get the other owner's signature, you cannot complete the gift. Contact the DMV if you need to remove the other owner's name from the title first.