When you transfer vehicle ownership in Silver Spring, MD, you must comply with the Maryland Motor Vehicle Administration (MMVA) rules for the transfer to be legally valid. This process varies slightly depending on whether you buy, sell, gift, or donate a car. As the rules can be confusing, we’d like to tell you more about how the process works.
How Do You Transfer Vehicle Ownership in Silver Spring, MD?
Buying and Selling
The most important document for your car is your certificate of title. The MMVA issues the certificate. It’s a copy of the details of your car and its history. When you buy or sell a car, you need your certificate of title, a notarized bill of sale, and a security interest filing statement if necessary.
The only difference in the procedure between buying and selling is the section of each form you fill in and sign. When you buy a car from us, for example, you’ll fill in the certificate of title as the buyer. When you buy a car, you will need additional documents, such as proof of insurance. All documentation must be registered with the MMVA for a valid transfer.
Gifting a Car
When you gift a car, you’re transferring a car you own to a family member or someone you know. This is a great way to give up a car you don’t want and simultaneously help a friend or family member. To gift a car, you’ll need your certificate of title and a bill of sale. If the car was originally subject to a lien, you also need to complete a security interest filing statement.
You complete the section of the certificate of title as the seller, and the receiver completes the section as the buyer. You will need to fill in “Gift” for the purchase price. If you’re gifting the car to a close family member, they won’t be liable for the Maryland excise tax of 6%. It’s advisable to go with the new owner to the MMVA. You will also need to surrender the old license plates there.
Donating a Car
A donation of a car is similar to giving a car as a gift. The difference is you’re giving the car to a charity. If your chosen charity is registered as a 501 (c) (3) organization with the IRS, you’ll be able to claim the donation on your next 1040 form. You’ll need the same forms used for buying, selling, and gifting. The only difference is you fill in “Donation” for the purchase price.
If you’re looking for a replacement for the car you’ve sold, gifted, or donated, come in and see us at DARCARS Volkswagen. We have the perfect car waiting for you.
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