Gifting a Car in Illinois: Gift and Transfer Guide

If you want to gift someone a car in Illinois, you’ll need to own the vehicle with a free and clear certificate of title—it can’t be held by a lien holder.

If you’re financing a car to give to someone, you’ll need to leave it in your name until it’s paid off, or cosign the loan so it’s in the recipient’s name.

Make sure you and the recipient sit down and decide who’ll be responsible for the fees and expenses of owning a car.

Bringing the recipient to the dealership with you is the simplest way to gift a motor vehicle. The person can pick out the car they like and make sure it’s something you both can afford in the long term.

payments cannot be given as a gift. All payments must be made before you complete the car title transfer.

Key Takeaway If you’re giving a new car as a gift, make the process easier by bringing the recipient to the dealership with you.

If you plan on surprising your recipient with a gifted car, transferring a vehicle you already own is the easiest way. It doesn’t matter if it’s a beat-up

The process is the same for giving someone a car you don’t need anymore. Follow the steps listed below to legally gift a car in Illinois.

Once the excitement of your gift has died down a little, take a moment to discuss the finer details with the car’s new owner. There will still be costs and payments to make, so it’s important to decide who will be responsible for them.

The Illinois DMV requires two fees for a title transfer : a $95 transfer fee and a $15 alteration fee (required to change the name on the certificate title) for a total of $110. Residents of certain counties will also have to pay for a $20 smog check.

Between you and the recipient, decide who will pay for the title transfer process as well as the ongoing costs for car insurance, maintenance, and fuel.