Transfer a Car Title in Texas

Transferring a car title in Texas is crucial when buying or selling a vehicle within the state. Understanding the intricacies of this process is essential to ensure a smooth and legally compliant transfer. From gathering the required documentation to navigating the Texas Department of Motor Vehicles (DMV) procedures, each step plays a significant role in completing the title transfer accurately. 

Do you know how to transfer a car title in Texas to a family member? This guide will explore the step-by-step instructions for transferring a car title in Texas effectively. Whether you’re a buyer or a seller, knowing Texas’s specific requirements and regulations will help you protect yourself from potential liabilities and ensure a successful transfer. 

Car driving in Texas

How to Handle License Plates When You Donate a Vehicle in Texas

When donating a car, truck, SUV, or any other standard vehicle in Texas, knowing how to handle the license plates is important. In the Lone Star State, the guidelines regarding license plate removal are relatively straightforward.

In Texas, removing the license plates from the vehicle when donating it is optional. The owner can keep or leave the plates on the car for the dealer to handle their destruction. However, regardless of the decision made regarding the plates, destroying the registration sticker upon transfer is essential.

If you choose to keep the license plates, it’s crucial to ensure that they are securely stored or submitted for cancellation at the local Texas Department of Motor Vehicles (DMV) office. On the other hand, if you decide to leave the license plates on the vehicle, the dealer or organization accepting the donation will handle their destruction, ensuring that they are disposed of per the state’s regulations.

Transfer Notification Process

In Texas, you can inform the TxDMV (Department of Motor Vehicles) about donating your car through two methods: online submission or traditional mail.

Completing the transfer notification online, it’s the preferred and recommended method for its ease and efficiency. By submitting the forms online, you can conveniently save and print a copy for your records, complete with a date and time stamp, ensuring a seamless documentation process.

Alternatively, if you choose to notify the TxDMV via mail, you must fill out and print the Texas Motor Vehicle Transfer Notification Form VTR-346. Once the form is completed, it should be mailed to the address below:

TxDMV Vehicle Titles and Registration Division

P.O. Box 26417

Austin, TX 78755-0417

How to Transfer a Car Title to a Family Member in Texas

Transferring a car title to a family member in Texas is a relatively straightforward process, whether you’re gifting the car or selling it. To help you navigate the steps involved in both scenarios, here’s a comprehensive guide on how to transfer a car title to a family member in Texas:

Who Qualifies as a Family Member for Title Transfers?

In Texas, the following relatives qualify for tax-free gifting or reduced sales taxes on car transfers:

  • Spouse
  • Parent/Stepparent
  • Child/Stepchild
  • Sibling
  • Grandparent/Stepparent
  • Grandchild

Documentation Needed

Whether you’re gifting or selling the car, you will need to gather the following documentation including the original title. You’ll also need the odometer disclosure statement and the application for Texas Title (Form 130-U). Valid IDs for you and the new owner and proof of insurance for the new owner are necessary. 

Transferring as a Gift

To transfer a car title as a gift to a family member in Texas, follow these steps:

  • Check the odometer reading on the title or in the Odometer Disclosure Statement.
  • Fill out the “Assignment of Title”.
  • The recipient should complete an Application for Texas Title (Form 130-U).
  • To transfer a motor vehicle as a gift, both parties involved need to complete and sign a Motor Vehicle Gift Transfer Affidavit (Form 14-317). It is necessary to do this in the presence of a notary public to ensure the legality and authenticity of the transfer.
  • You must file the paperwork in person at the county tax office within 30 days, along with a $33 title transfer fee, a $10 gift tax, and any applicable registration fees.

Transferring as a Sale

To transfer a car title to a family member as a sale in Texas, follow these steps:

  • An odometer reading must be present on the title.
  • Complete the “Assignment of Title” section.
  • Submit an Application for Texas Title (Form 130-U).
  • Provide a bill of sale with the purchase price.
  • Include a release of lien, if applicable.
  • You must file the paperwork at the county tax office within 30 days, along with a $33 title transfer fee, sales tax on the purchase price (or standard presumptive value, whichever is higher), and any applicable registration fees.

Can You Transfer a Car Title to a Family Member in Texas Online?

While it’s convenient to handle various tasks online, online transfer of a car title to a family member in Texas isn’t currently possible. At some point, certain documents must be submitted physically via mail or in person.

Transferring a car title to a family member in Texas involves following the specific steps and gathering the necessary documents, whether it’s a gift or a sale. It’s important to ensure compliance with state regulations and file the paperwork within the designated time frame. By following this comprehensive guide, you can navigate the process smoothly and confidently transfer the car title to your family member.

Can You Transfer a Car Loan to Someone Else in Texas?

If you find yourself struggling to make monthly payments on your car loan, you may wonder if transferring the loan to another person is a viable option. The process of transferring a car loan to someone else can vary depending on the lender and your loan type. While it may not always be straightforward, it’s possible under certain circumstances. 

Understanding the Possibility of Loan Transfer

Many mainstream lenders prevent the direct transfer of a car loan from one person to another. However, some have a clause permitting transferring the loan to a new owner under specific conditions. Therefore, the first step is to review your loan contract to see if it allows for assumptions.

If assumptions are permitted, the lender must approve the new individual looking to take over the loan. To qualify, they must typically demonstrate good credit, stable income, and financial stability. Essentially, the new borrower would apply for a new loan using the car as collateral, and once approved, their loan would pay off the remaining balance on their existing loan.

Reasons for Transferring an Auto Loan

There are several common scenarios where transferring a car loan may become a practical choice:

  • Financial Hardship: You may no longer be able to make the payments due to reasons like job loss or medical bills.
  • Lifestyle Changes: Moving to a location with limited need for a personal vehicle.
  • Passing Ownership: Gifting the car to a family member who then takes over the payments.
  • Vehicle Suitability: The car no longer meets your needs, such as requiring more space for a growing family.
  • Cost Consideration: You wish to purchase a more affordable vehicle.

Steps to Transfer an Auto Loan

If your lender allows assumptions, the process of transferring your car loan typically involves the following steps:

  • Review Loan Terms: Check if assumptions are permitted in your loan contract and contact the lender to discuss the transfer process.
  • Find a New Borrower: Select a creditworthy individual who meets the lender’s criteria and assist them in preparing the necessary application documents.
  • Submit Paperwork and Obtain Approval: The new borrower completes the loan application, receives approval, and signs the updated paperwork and loan contract.
  • Update Title, Registration & Insurance: Transfer the title to the new owner, update the vehicle registration, and modify the insurance policy accordingly.

Considerations and Alternatives

Before attempting to transfer your car loan, there are several key considerations to keep in mind:

  • Not all lenders permit assumptions, so review your loan terms carefully.
  • The new borrower’s credit score plays a significant role in approval chances.
  • Transferring the loan may incur fees or penalties from the lender.
  • Early repayment penalties or interests may apply.
  • Changes to insurance coverage will be necessary.

If your current lender does not allow transfers or you encounter difficulties finding an approved borrower, alternatives like refinancing the loan or selling the vehicle can offer solutions to alleviate the financial burden associated with the car loan.

If you have any further questions, contact our team at Titelo!