As the holiday season approaches, you’re likely searching high and low for gifts for the special people in your life, and if one of your family members is a car enthusiast, you might be thinking about buying them a new automobile for Christmas. A car can be a fantastic gift idea, but before you commit to a purchase, there are several factors that you need to consider to make the right gift choice.
Titling and Financing a Gift Car
Besides picking the perfect model for the lucky recipient, the most important part of giving the gift of a car is getting the titling and financing for the vehicle right. Every state has different requirements for titling a car to another person, so you’ll need to understand the rules in your location if you want to give someone a car. Talk to the dealership where you plan to purchase the car for help with titling. Most dealerships will have someone on staff who can assist you with this important task.
Next, you need to get financing for your vehicle. This can sometimes be tricky for two reasons. First, the person you’re giving the car to will need to put their signature on the financing paperwork eventually. Second, the ability to purchase the car will largely depend on your credit level. If you have good credit, you shouldn’t have trouble purchasing a car as a gift. Those with less than stellar credit may need a little help with financing.
If you’re giving a car to your husband or wife, having them sign the paperwork shouldn’t be an issue. You should be able to surprise your spouse with the car and then have them sign the paperwork later. You can also keep the car a surprise even if you need to run both your and your spouse’s credit. Just have the financing professional at your dealership run credit for both of you, and then your spouse can sign the documents later.
Getting Insurance in Order
After settling the titling and financing issues, you need to get insurance for the gift car. Fortunately, you have two convenient options from which to choose. The easiest solution, if you’re buying a car for a spouse or a child, is to simply add the new car to your current insurance policy.
Just call your insurance agent and they can help you work out the details. Generally, you’ll have between two weeks and a month of automatic coverage for new vehicles, which gives you time to either add the car to your current policy or buy a new plan if necessary.
Bind and delay is your second insurance option. Essentially, this means that the new car is covered, but your policy won’t be issued until a later date. This is the best idea for gift cars. You can call your agent and tell them you need coverage for a new vehicle, but have them delay the paperwork until after Christmas.
Follow these tips, and you should be able to easily purchase a car as a Christmas gift for the most special person in your life.
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