Does this car count as a gift for vehicle registration purposes?

Question

Someone else bought a car from a tow yard as a lein sale and gave it to me. They put the title in my name. Now I'm registering that car in my home state, and I'm being asked how much it was bought for and how much sales tax was paid. I don't know what he paid for the car. Do I claim it as a gift because I didn't pay anything, or since he put the title directly in my name, does that mean I technically paid whatever he did and have to claim that?

James L. Arrasmith · Answer

For vehicle registration purposes, you should consider the car as a gift since you did not pay for it yourself. When registering the vehicle in your home state, you can explain that the car was gifted to you, and you are unaware of the purchase price. This is important because the sales tax you owe might be based on the vehicle's value rather than a purchase price you didn't pay. 
 
In cases where the title was directly put in your name without any monetary transaction on your part, it's generally treated as a gift. You will need to check the specific requirements for your state's DMV regarding gifted vehicles. They may require a gift affidavit or additional documentation to support your claim. 
 
Be sure to gather any necessary paperwork and clarify the situation with your state's DMV. This will ensure that you are complying with their regulations and avoid any potential issues with your vehicle registration.

Q: Does this car count as a gift for vehicle registration purposes?