If you are thinking about giving the gift of horsepower this holiday season, there are a few things to think about before stepping on the gas. Such a large and expensive gift needs some consideration and planning before the big delivery.
First, for the vehicle to officially belong to the recipient, the title has to be in their name. This isn’t a big deal if the gift is going to your spouse or someone who resides with you. However, if you are buying it for your son who just graduated from college and is venturing out on his own, you’ll want the title in his name. So, if it’s a surprise you’ll have to switch titles after you give him the gift. A way around that is to bring him to the dealership when you purchase.
Once the title issue is straightened out, it's time to think about other incidentals such as auto insurance and federal gift tax. You need to ensure that the auto insurance meets your state’s minimum insurance requirements. It’s a good idea to get an auto insurance quote so you'll have an idea of how much premium will be required to cover the new vehicle (and who will be responsible for paying the premiums). Also, you (the gift giver) may be responsible for paying federal gift tax, be sure to check IRS requirements for your state and factor that into your budget if needed.
Now that the purchase basics have been hashed out (sorry, I’m not quite done yet), you should think about the recipient’s lifestyle and budget. Are they on a tight budget? Will buying gas for the car become cumbersome for them? Will they be able to afford maintenance on this particular vehicle? All of these things are present and future questions you should ask yourself before making the move. But, once all of these details have been thought out, there’s no doubt the recipient of said vehicle will be delighted beyond belief!
Questions? Lucky for you, our Keenan Insurance Agents in Doylestown, PA can answer any of your car-buying or auto insurance inquiries. Contact us today via our website or give us a call at 215-345-6670.