ICBC transfer vehicle as gift
 

Got a question for you guys which I am not sure the answer too...

my dad is going to buy a used car for my younger brother who just got a license and my dad wants to get him his first car for school/work. The car is $20,000 and my dad is going to put down $10k cash and $10k financed. That means the car title will belong to my dad right when he purchases the car? and also means he will have to pay HST at time of purchase...how would he transfer the title over to my brother without having to pay the hst tax twice?...can he transfer it as a gift or is that not allowed?...basically hes just trying to help out my brother who doesnt have any credit history to get his first car and start his first job.

thanks

Yes, instead of a bill of sale you just need a documents outlining its a gift.

when you buy the car, you can put the title under your younger brothers name to begin with and have your dad co-sign it to get approval for financing

and to answer your question, yes just transfer it as a 'gift' that way you wont get taxed
however, ive heard stories that when people 'gift' cars to avoid tax ICBC might not give you full value of your purchased price if anything were to happen to your vehicle (someone please confirm this)

I can see them not paying out full value if they investigate and find out it was a gift to a friend....im hoping if the relationship is father to son there won't be this problem...

amd thanks guys! if anyone else has confirmation that would be nice!

my friend gifted a car to the buyer, months later icbc asked him why and he said they were buddies, no other questions asked

it might affect the value icbc will give if and when the buyer gets in an accident
(not 100% sure)

icbc will assume its black book value no matter what you paid for your car.

Anything tax related is Consumer Taxation Branch (CTB) issue. ICBC just helps CTB collect the taxes during the transaction. Anything tax related will be sent directly to CTB for their purposes.

This. It will help your brother's credit rating if the financing is in his name... and if Dad's going to be making the payments anyway, there shouldn't be a problem with missed payments (one would hope).

depends how old the son is... if he is over 18, when you buy the car you can put it directly under his name. If not you just need to fill out an additional form and both sign it to gift it from one another. Won't be a problem.

by claiming it as a gift to save on tax, it will decrease the overall value of the vehicle incase of write off, etc

Just fill out the gift form and do the transfer then done. One time the autoplan person asked why I paid so little for the car and I just said we're buddies and he needed $. But I'm sure the autoplan guy knows what's going on but never said anything

This is not true.
Posted via RS Mobile

Nope. I've dealt with numerous vehicles that were either gifted to me or I've gifted away. A couple of them were written off at one point and the pay out was never affected in any way by how the owner obtained said vehicle. ICBC pays out based on black book/market value. Whether I got a car for free through the gift transfer, paid $40, or $10,000, it has no bearing on what I get when some idiot totals it by running a red light into me.

^this.

Everyone here is going by hearsay and i can also say from first hand experience, i had a car gifted to me back in 2004 through my dads business partner, the car unfortunately was written off a year later and icbc paid out WELL over book value based on similar cars that were on sale at the time. mind you it was a pretty rare car so they couldnt go by book value hence the market assessment. for something more common they will payout book value.

In your situation, just avoid the gift form altogether, just put it in your brother's name right away.

^you can't, he's probably not old enough base on:first job, first car, younger brother, just got licence.

He needs to be 18 to be on the bill of sale.
Posted via RS Mobile

^Oh, my bad. I thought it was a private sale.

OP if you transfer to a relative its free.

edit
i dont know about financed car
BUT in my experience my car is paid for
when i transfer the title to my dad it was free..
IIRC they said its free because its a relative

hey, just a random thought

can you sell a 50k car to someone for 5$? how does the tax work?? heh

You pay tax on the amount you give the person... doens't matter the value or the car... but understating is trax fraud...

If on the bill of sale and the finance contract is under the son's name and was co-signed by the dad and the dealership is ok with it, when you go up to the insurance just tell them to just put it under the son's name.

You won't be able to gift or sell a vehicle that has a lien on it. If Dad want's to gift it to the son, Dad has to talk to the financing at the dealership to talk to the bank who let him finance the vehicle if he can give it away to the son.

You can do it, though ICBC will make you fill out a form stating why it's being sold for under fair market value. Again, something I've had to do in the past (bought a car with a blown motor with the intention of striping it for parts, and the price I paid was well below market value). However, keep in mind the CRA may become involved if there are questionable doubts. Happened to a friend of mine... lol

I paid well under value, and ticked off the little box but I never had to fill out anything extra (this was back in March 2011). However the insurance guy also though I still needed a Canadian VIN so...

:suspicious:

You can sell a car with a lien on it. Its obviously a very bad idea to buy a car with money owning on it, but if it's family member it's different.

the finance manager and bank have nothing to do with giving it away.