Title Transfer: How To Give A Car Title To A Family Member

Gifting a car to a family member is one of the most generous acts you can do for a loved one, but you need to know how the Mississippi title transfer process works to ensure you and your loved ones are happy and protected. This procedure can feel daunting, but it's easy when you know how.

This Mississippi Title Loans, Inc. guide will walk you through a car title transfer in Mississippi, including everything from the beforehand considerations to the actual car title transfer and its importance. We will also explain how doing a title transfer to a family member can allow them to get a title loan.

What To Do Before A Car Title Transfer In Mississippi

Gifting a car in Mississippi seems like a great idea, but there are things to consider before doing so. You can’t just hand over the keys and call it a day; there is a whole process for how to transfer vehicle ownership in Mississippi.

While it's tempting to jump straight into the Mississippi title transfer process, here are a few things you should consider beforehand:

• The DMV will typically request proof of car insurance before transferring the title. Ensure your relative has a policy prior to going to the department office.
• Your relative must have a license if they want the car to be in their name.
• Until the title transfer is complete, you remain liable for the car.

The Six Steps In Mississippi Title Transfer Process

Whether gifting a car in Mississippi, your vehicle's new owner will still need to head to the DMV to ensure the title is in their name and acquire a new registration. The difference is that you won't have to worry about paying sales tax — you're giving them the vehicle, not selling it to them.

With that in mind, follow these five steps when gifting a car in Mississippi to ensure a smooth title transference:

1. Pay Off Auto Loans

Firstly, you'll need to pay off your auto loans against the vehicle. You can only do a car title transfer in Mississippi for a family member if the title is lien-free. If you are unable to repay the loan at this time, you won't be able to transfer the car title until you can.

The following are some tips for paying off your car before a title transfer:

• Invest more money than the minimum monthly payment
• Cut unnecessary expenses and use extra money to pay off your car
• Round up your payment every month (For example, instead of paying $573, pay $600)
• Make biweekly payments

2. Consider Your Family Member’s Financial State

A vehicle is a very generous gift. However, can your relative afford the insurance, gas, maintenance, and potential repairs? If not, they may not be the best recipient for your used car. Despite how generous it appears on the surface, saddling somebody with a vehicle they can't realistically afford isn't the best way to show your love.

This step is particularly pertinent when the recipient is a teenager who has just learned to drive. They tend to have unstable incomes and could find it difficult to afford your used car. Assess their financial status and determine if they can reliably afford the car before doing the Mississippi title transfer.

3. Consider The Tax Implications Of Gifting A Car In Mississippi

Gift taxation laws are always evolving. However, as of February 2025, the IRS allows a $19,000 gift tax exclusion per year per person. In plainer terms, this means you can gift up to $19,000 without paying tax.

Provided you haven't already claimed any of your annual exclusion, you can gift a car with a fair market value of $19,000 and not worry about paying tax on it. However, if the vehicle has a fair market value of over $19,000, you must pay the gift tax. As of February 2025, the gift tax is up to 40%, depending on the amount by which the vehicle exceeds your yearly allowance.

4. Complete The Bill Of Sale

Even though you are performing a title transfer to a family member, it's good practice to get a bill of sale signed by both sides. It protects both of you by proving the ownership change. Avoid unnecessary legal complications by getting a bill of sale when doing a title transfer to a family member.

The bill of sale should contain the following information listed below:

• Odometer disclosure statement/the odometer reading (i.e., current mileage)
• Vehicle identification number (VIN)
• Price ($0, as you're gifting the vehicle)
• Vehicle make and model

Since every state has its requirements for this document, we recommend using a Mississippi template to ensure you complete everything as required by state laws and regulations. A quick Google search will bring up hundreds of templates you can use, making writing up your bill of sale easy.

5. Sign The Car Title Over

This is when you transfer vehicle ownership in Mississippi! It's similar to a private party vehicle sale — you (the current owner) and your loved one (the new owner) must fill out the odometer statement and sign the title. Like the bill of sale, every state has its own requirements for title transfer documents.

As a Mississippi resident, you will need to follow these steps to ensure you accurately fill out all the information:

1. Turn to the back of the DMV title transfer form.
2. Find the "Assignment of title by registered owner" section and print your loved one's name (the "buyer") and full address on the relevant lines.
3. On the next line, fill in your vehicle's current mileage.
4. On the subsequent line, you must sign your name (the "seller"). If you own the car with somebody else, you must ensure they sign on the same line.
5. Print your names and write the date you gifted the car on the next lines. 
6. Finally, your loved one needs to sign and print their name.

6. Complete The Mississippi Title Transfer Process

With these documents completed, the transfer must be finalized with the Department of Motor Vehicles. The professionals there will walk your loved one through the whole process, ensuring a seamless transfer of vehicle ownership in Mississippi.

Unfortunately, transferring a car title isn't free. However, you'll be pleased to know that it won't break the bank!

You will be charged $9 in Mississippi for every motor vehicle title transfer. If you want an expedited document, you must pay an additional $30 for a Fast Track Title. This will be issued within 72 hours after the department receives your request.

Getting A Title Loan After A Car Title Transfer In Mississippi

After transferring a car title to a family member, they can get a title loan. This is a secured loan that lets borrowers with a lien-free car title use their title as collateral to borrow between $300 and $2,500 in emergency cash for medical bills, overdue rent, or home and auto repairs.

The following are the required items for title loans:

• Your driver’s license or state-issued ID card
• A lien-free car title in your name
• Your vehicle for a quick inspection

Unlike traditional loans, the requirements are easy to meet, and you won't have to worry about arduous approval processes. Instead, you fill in a form, have a quick phone conversation, meet face-to-face, and receive your money if you qualify (all credit situations are welcome). It's as simple as that!

Get A Title Loan From Mississippi Title Loans, Inc. – Borrow Up To $2,500 Today!

While there are many reasons for its importance, properly transferring titles can put you in a better financial spot. After all, you can receive title loans when you have an accurate vehicle ownership record. If you're looking to fund emergencies with your car title, don't hesitate to contact us at Mississippi Title Loans, Inc. Simply fill in the online form, and we'll call you.

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.