We’ve all seen the commercials where a brand new car is parked in the driveway with a big red bow around it, all wrapped up as someone’s holiday surprise. These sorts of purchases definitely can be done, but there are a few things that you need to know if you plan on buying a car as a present this year.
Pick the Right Car
If you are buying a car for someone as a gift, it would be great to give them a vehicle that they actually want. Is there a particular color in a vehicle that they love? Is space for hauling recreational gear or family needed? Take the time to find out precisely what their likes and needs are before you go shopping.
If you need to finance the vehicle, a surprise may be more difficult provided you both are going to be listed on the paperwork. Many dealers are willing to help with this if you explain what you are trying to do. Some auto dealers allow you to execute your surprise and then complete the necessary paperwork soon after. You will also want to consider any tax implications of giving a gift of this size, as it may subject you to the Federal Gift Tax.
Finally, consider that while you are giving the gift of a vehicle, that car is going to require insurance. Are you also giving the gift of insurance or will your loved one be responsible for auto insurance premiums? Either way, Maryland is a mandatory vehicle insurance state, so the best course of action is to contact your auto insurance agent serving Laurel, MD to discuss coverages when you decide to purchase a vehicle as a gift.
For more information about personal auto insurance, contact Mid Atlantic Insurance Financial today.