Things You Need To Consider When Buying A Car As A Present

You are going to do it this year. You are going to buy a car as a present to a spouse, family member or significant other. You want to see the same surprised and delighted expression on their faces as the actors show on those television commercials.

Yet before you drive to the nearest car dealership, there are certain things you need to take into consideration. A car purchase is a big financial decision for both you and the person who will receive it as a gift. You will need to pay the IRS a federal gift tax for a present that large if you won’t be receiving a reciprocal gift costing the same amount. You also need to ensure the person who is receiving the gift has the funds to pay for car insurance, maintenance fees, fuel and related expenses when owning the car.

Another topic to consider is the paperwork. Most people don’t do the "ribbon on the car top" gift idea because they will have to place the car title in their own name to drive it off the lot. Then you have to go through the hassle of transferring the title. To avoid this situation, you can take the person down to the dealership and have them choose the car they want as all the paperwork will be in their name.

For more information about auto insurance for a new car throughout California, please contact Ron Young Insurance at 818-840-0246.


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