How to Transfer a Car Title to a Family Member

Car keys

Whether someone recently lost a car in an accident or it’s someone’s 16th birthday and you’re giving them their very first car, giving someone a new automobile can open up entirely new opportunities for them. Being mobile means they’re more independent and can rely less on others when it comes to transportation. (It might also mean it’s time for an upgrade of your own!) But giving someone ownership of your vehicle takes more than slapping a bow on the hood and handing over the keys. If you’re looking to hand over ownership, here are some of the major steps you’ll need to handle first:

Is the car paid off?

First, make sure the vehicle is paid off and that you’re legally the owner. When it’s all paid off, the dealership or bank should have sent over the car title in your name. If it’s not entirely paid off, speak with the dealership/loaner to determine the next steps or a potential payment plan for the recipient.

Car Title Transfer

The Illinois Department of Motor Vehicles (DMV) has a detailed breakdown of the steps, but filling out the Title Transfer Section on your vehicle’s title will be required. This means copying down the odometer, your license, the buyer’s name, and signing it. They should have a section as recipient. There’s also a phone number to call for more details: 1 (888) 261-7864 for specific information about title transfers for gifted vehicles.

Don’t forget to remove your license plate!

Seller’s Proof of Sale

If you’re wanting to completely give ownership, this will be required for Illinois. This relinquishes all responsibility for the vehicle to the new owner. The form can be found here.

Car Insurance

Make sure the new owner picks up car insurance. This can be a step usually forgotten, but will be crucial if the new driver ends up in an accident or is pulled over for any reason.

Registration Time

With these steps taken care of, the new recipient should head on over to their nearest DMV with their new license, title and proof of insurance to get the car registered in their name.

Following these steps will be necessary to transfer the car to the new owner. If you’re wanting to buff out any of the dents beforehand, or if the new owner adds a few of their own, be sure to swing by Turk’s Collision Center to take care of the rest. Give us a call and make the gift as good as new: (309) 694-2905