There are several reasons why you may decide to gift a vehicle. Maybe you gave it to a family member, such as a teenager who just got a driver's license. Maybe you donated the vehicle because you bought a new vehicle, but don't want to sell the old one. Whatever the reason, the first step in awarding a vehicle is transferring ownership of the vehicle. However, there are some details that make this process much more complex. You need to make sure that the vehicle is not problematic. There must be no active mortgage status on the vehicle. If you buy a gift vehicle with someone else (co-ownership), that person must provide his/her signature (except for certain reasons, such as death. In this case, you will need to bring the vehicle documents to the wills court office for permission). After the ownership certificate is transferred to the new owner, you must report to the nearest Samsat to complete the process.
Step
Method 1 of 3: Setting up Gift Transfer
Step 1. Recheck vehicle ownership
This may sound cliché, but the first step to take before gifting a vehicle is to make sure that you are the legal owner. To do this, you must have a vehicle ownership certificate (BPKB). This document is the proof of ownership that you get from the vehicle seller. If you buy it on credit, the BPKB will be delivered after your installment is paid off. BPKB includes the name of the legal owner of the motor vehicle.
If your BPKB is lost, you must replace it at the nearest Samsat office. In the United States, each State has different administrative procedures and fees, while in Indonesia, the procedures and fees are generalized. You can find the nearest Samsat contact information online
Step 2. Pay off the lien
A lien holder is a person whose money you borrow with the car as collateral. If you are still in debt, the person's name will appear on the BPKB. Before gifting the car, pay off all your debts, so that the lien holder can sign a certificate stating that you have paid off all debts.
Step 3. Involve a wills court, if the vehicle is an inheritance
If the legal owner of the vehicle whose name is listed on the BPKB has died, the gift is considered an inheritance, so you need to come to the will court to get a transfer order. As an alternative, in some cases, you can request an oath letter from Samsat to obtain vehicle ownership rights. You should check the applicable regulations.
If the car is owned by a husband and wife, for example, then one of them dies and the living person wants to gift the car, the living person can often transfer the car themselves. A copy of the death certificate may need to be included with the BPKB
Method 2 of 3: Complete the Required Documents
Step 1. Fill in the transfer field at the back of the proof of ownership
The person giving the vehicle must affix a signature, driver's license information, and vehicle odometer information at the time of gift. The person who receives the car must fill in the buyer field in the certificate of ownership. In the column to fill in the selling value of the car, you can write "Gift".
Be careful when completing this process. Most of the vehicle ownership certificates or BPKB must be filled out clearly and neatly, without any written marks that are erased or scribbled. A few printing mistakes could even lead to you needing a new copy and starting the entire process of filling out the title from scratch
Step 2. Ask the lien holder to relinquish ownership
If the lien holder has not provided anything stating that your debt has been paid off, you must ask him to give up ownership of the vehicle in full. If you are paying in installments from a car dealer, you must contact the lender and look for the original installment documents. This will help you find the contact of the person in charge of relinquishing ownership.
Step 3. Check the rules for awarding motor vehicles at the nearest Samsat
In general, gifts between family members are exempt, and are not taxed during the transfer process. However, some states in the United States have different rules so you need to check the applicable regulations. Some states even require proof of family membership in order for gifts to be tax-exempt.
Step 4. Verify the gift recipient
The person receiving the car usually has to show that he or she already has insurance before taking ownership of the vehicle. This is not something the owner of the vehicle has to worry about, but the new owner, in order to be able to drive his car, must make sure he has insurance and has registered the vehicle. The new owner's insurance company will usually send a letter asking for proof of insurance ownership.
Step 5. Check the vehicle inspection requirements
Some States will inspect the car separately at the time the transfer is made, while others will not. You can come to the nearest Samsat to seek information. In most States, you are required to go to an official checkpoint and undergo a series of safety inspections, emission tests and other similar procedures.
Method 3 of 3: Completing the Transfer Process
Step 1. Submit all required documents to the Samsat office
In most areas, the person receiving the vehicle gift must submit all the necessary documents to the Samsat office. You must bring the original BPKB along with all signed documents, and pay the necessary administrative fees.
Step 2. Register the car according to the applicable procedures
This is the job of the new owner. Vehicle registration is a procedure to ensure that the vehicle is licensed and can be driven on the road. In many areas, you can call the Samsat office to make an appointment.
Step 3. Wait for the new BPKB to arrive
As a recipient of a vehicle prize, you will receive a new BPKB. Samsat will send this document, usually after a few weeks. When it arrives, check the contents of the document to make sure everything is printed correctly. This document is proof of ownership of your vehicle. If there's an error in it, even if it's trivial (like the wrong initials), you can get into trouble later on. If you find an error, immediately contact the nearest Samsat office. You may need to fill out a form to proofread the contents of the document.
Tips
- In some states, you may charge the sale price of a car to avoid gift-giving taxes.
- Some proof of vehicle ownership requires the services of a notary. If this is required, do not fill in the signature and date of grant before the notary arrives. A public notary will provide free services, and can be found easily at banks and sub-district offices.
- If you do not have a copy of the BPKB, you can contact the nearest Samsat or vehicle lien holder to obtain it (if your installments have been paid off).
- When you have completed the transfer of ownership process, the prize recipient can carry out the registration process and create a number plate for the vehicle given.
