Looking for an opinion from the creative minds on the automotive board...

So when my new vehicle arrives (5 - 7 weeks now ), i will be giving my car to my brother and his wife...

First issue is that i plan to give it to them for, well nothing... but i've been told that this can look funny to the tax man / have "gift" implications when it comes to taxes? Can i get around this as simply as selling it for a dollar? Thoughts?

Second issue is that I'm in the DC area and they are back home in San Antonio. My options are:
A) ship it - which will cost about 650 for the cheapest/slowest option. supposedly fully insured...
or B) drive it which will cost gas that i haven't figured yet plus 21 hours of driving (i think) plus two plane tickets back to VA (the lady friend and i)...

anyone have any experience with shipping a car? thoughts? satisfaction level?

Third issue is that i JUST payed for two years of registration so i really want to transfer my plates to the new truck. I'm not sure how this will affect my ability to get my old CR-V home tho. Can the truck sit on the dealers temporary plates while i get the CR-V home, after which i can do the plate transfer? Or does plate transfer have to be done when i pickup the truck?

Insurance will be fun to deal with too, as if i drive to SA, i guess that means I will have to have TWO insured cars at once... hell can i even ship an uninsured vehicle?

I know its long, and feel free to tell me to do my own damn research just thought i'd see if anyone had any experience with any of this, and/or had any opinions on how to handle all this...

1st issue is DO NOT cancel the insurance until your brother takes posession of the car. spending the $38 of pro-rated insurance while the car ships is a small price to pay if the carrier overturns in a ditch or keeps going down i-35 to mexico with your car.

i have shipped many cars and there is really nothing to it. your issue will be finding a carrier to ship either 1 car for you or you will have to wait for said carrier to pick up a full load coming to texas. shoot me an email (in my profile) and i can prolly find a carrier coming this way.

i am unfamiliar with the bill of sale forms in your state, but go to your state's dmv page and look up "selling a car". i know in texas they have a special box on the form for "gift" where you pay like $10 or $50 flat tax for the gift on the 130-U form.

as well, most states the plates stay with the owner (or taxpayer), not the car (texas just changed theirs last year to this rule). keeping your plates shouldn't be an issue... if the car ships, it does not have to be registers or have plates.

your brother can go to the texas dmv https://vision21.txdot.gov/Vehicle/VehicleLookupForPermit.aspx and fill out this form. this will give him a 5 day permit to drive the car to the dmv office to register and get plates.

good luck!

I live in SC, so this might not help you, but here you can keep the dealer plate or temp. plate on for a limited time.

During that time you could drive the other car out to TX and then bring the plates back home with you, if you take that route.

For sure want to change plates if you can though. Should save some $

Your brother can go to the county tax office with an insurance card and 25 bucks cash and get a 30 day paper tag, mail it to you and it can be driven if you want to keep your Plates.

Try uship.com for transporting the car.

You'll need a letter (preferably notarized) stating the car is a gift, and then fill out the VTR130U (available online) and mark the car as a gift.

Your brother should fly up there and drive it down himself. That's only 1 one-way ticket + his own gas.

Have him register and pay the taxes on it himself. What's it worth? 6.25% of a pretty small amount I'd guess, plus ~$75 for reg and plates.

6.25% on SPV, unless you say its a gift.

spherical!

I think I know you. You used to post on another board. I hope you've been doing well if that's you. If not, just ignore me.

[This message has been edited by Cyprian (edited 1/6/2009 12:58p).]

Below is what I received from the Comptroller’s Office when I had questions regarding possible sales tax on a vehicle given to my daughter from her grandfather.

Regarding the Motor Vehicle tax on a gift in Texas:

"Since the car is titled and registered free and clear in your name (I am assuming), the transfer of the car from you to your brother for no consideration is subject to the $10 Texas motor vehicle gift tax pursuant to Section 152.025 of the Texas Tax Code.

The $10 motor vehicle gift tax is paid at the time a properly completed and signed (by both your brother and you) Texas Title and Tax Application (Form 130-u) is presented to your local county tax assessor-collector's motor vehicle registration office at the time the
title is transferred to your brother. Be sure to check the gift tax box on the form 130-u before submitting it and the title to the car to your local county tax assessor-collector's office. The form 130-u is available from your local county tax assessor-collector's office or on-line at: www.window.state.tx.us/taxinfo/taxforms/14-forms.html

You can e-mail them to tax.help@cpa.state.tx.us, or you may reach me by phone at (800) 531-5441, ext. 3-4986."

Ken Koch
Tax Policy Division
Comptroller of Public Accounts
P.O. Box 13528
Austin, Texas 78711
512.463.4968 (phone)
512.475.0900 (fax)

Wow - thanks everyone for the responses.

Mookie - closer to ship time i think i will probably take you up on your offer for carrier info, thanks!

And thanks to everyone with info on taxes and insurance... i guess I need to figure out the equivalent Virginia policies


Cyprian, i think i used "spherical" on Hobbes when i was an undergrad (class of '04) is that the board you're thinking of?