How To Buy A Car For Someone 【2026 Update】

They need their own policy. You’ll need the VIN (Vehicle Identification Number) in advance so they (or you) can have a policy ready to activate the moment the keys are handed over. 5. Delivery Logistics

As of 2024, you can gift up to $18,000 per person without reporting it to the IRS. If the car costs more, you’ll need to file Form 709, though you likely won't owe taxes unless you've hit your lifetime exemption ($13+ million). 4. Insurance (The "Before You Drive" Step) A car cannot legally leave the lot without insurance. how to buy a car for someone

Ensure you have the recipient's full legal name and address for the paperwork. 3. Taxes and the "Gift" Rule They need their own policy

If you want a "big bow" moment, you’ll likely need to buy the car in your name first and transfer the title later. Delivery Logistics As of 2024, you can gift

Many dealers are happy to help with a "reveal." They might provide the giant bow or even deliver the car to the recipient's house for a small fee.

If the recipient is present, they can sign the title and registration immediately, which avoids double taxation or extra DMV fees. 2. Financing and Ownership