Last Updated on September 21, 2022 by John Robinson
Gifting someone a car is one of the best presents you could ever give. It is functional and downright cool! Nonetheless, cars can be quite a piece of investment. It is not something as easy as handing over a bar of chocolate. It can be much more complex than that.
Hence, we have gathered some useful tips to help you find special vehicle deals. So, here are a few important details you should consider as a giver:
Tip #1: Know what type of car your recipient wants
Of course, you would always want to give someone a gift that he or she would most likely appreciate. Something that would fit his taste, his lifestyle, and his financial situation.
Like for example, if you are gifting to a college student, then a sedan would sound perfect. It is a good all-around car and it is mostly fuel-efficient too. Thus, the operation and maintenance costs of the car are more affordable for a student’s budget.
Tip #2: Do your research
Once you already figured out which type of vehicle your recipient would likely prefer, go ahead and do further research. Get to know the specifications of the car. Does it have features that would help improve the convenience and efficiency of the user?
For instance, when choosing a car for a mother, it is a primary requirement to have built-in child seat attachments. Or, a keyless entry would also come in handy. As any mother would know, it can be quite challenging to reach in for the car key while pushing the baby stroller in one hand and the other holding bags of groceries.
Tip #3: Know the price range
Whether you plan to buy a brand new or a pre-owned vehicle, it is always wise to know the actual value of the car. If you want to get the best price, you must know how much it really costs. Right?
Different dealerships may offer varying price ranges. Don’t get intimated to make inquiries and compare the prices. Your goal here is to get a no-nonsense price!
Determining the actual value will also help you prepare your finances. Set your parameters. How much are you really willing to pay? Inform the salesperson about the details so he can better help you come up with a fairer price and favorable terms.
Tip #4: Dig in for special incentives
In some cases, automakers will offer cash rebates, cut-rate financing, or other types of sales incentives. However, these special vehicle deals may not be outrightly advertised. That is why these direct-to-dealer marketing incentives are often referred to as “secret rebates”. Being aware of these special offers will give you a better advantage when negotiating the transaction price.
Tip #5: Plan how to finance your purchase
As they always say, cash is king! Yes, paying in cash seems to be the best and most hassle-free way to pay off your gift. This allows you to save more by eliminating the liability to pay interest rates and other financial charges.
Nevertheless, if cash is not fully available on hand, then there are other viable options as well. You can always try to apply for a car loan. Now, be aware that getting involved with financing institutions can be a tricky business.
Application for a loan doesn’t give you automatic approval. Your credit rating will basically influence how these lenders would respond to your request. A good-paying debtor will always have the upper hand when it comes to interest rates and terms.
Tip #6: Be prepared to pay the gift tax
I told you, gifting a car is not as easy as gifting a bar of chocolate. Aside from paying off the amount of the car itself, you as a giver is also obliged to shoulder the “gift tax”.
By definition, a gift tax is a federal tax levied upon the taxpayer who wishes to give monetary or property gifts to another person. This tax usually ranges between 18% to 40% depending on the value of the item being gifted. As of 2022, a gift tax will be imposed upon the giver if the value of the gift is more than $16,000.
Tip #7: Find a reputable car dealership
Yeah, you can find the sweetest car deals right off the internet. But, the question is, are they for real? You can never be sure if these websites are legit or just a sham.
So, whenever you decide to buy a car, make sure you are dealing only with reputable car dealers. Find an official sales agent to help you walk through your purchase.
Tip #8: Prepare the necessary documents
There are two documents you need to prepare here. First is the bill of sale. This contract will protect you as a giver. You see, the responsibility of the car would still be under your name not unless you have a black and white document signed by you and the giftee.
The second paperwork you need to comply with is the transfer of car title. This document will officially release the ownership of the car to your giftee.
Tip #9: Wrap a nice bow on your gift
Last but not the least, don’t forget to wrap a nice bow over your gift. Nothing can be more memorable than the feeling of opening your present. Be it a box of car keys or the entire car, for sure the bow will make your giftee feel extra special.
Nothing can be more exciting than to be gifted a car. Yup, that’s for sure! But, as a giver, nothing can be more fulfilling too than to have gifted a car from an awesome deal. It is like hitting two birds with one stone. You have made your loved one happy without drastically hurting your pocket.