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It's not always possible to buy a car for someone as a gift, but if you already own a vehicle you may be able to give it to someone as a gift. In order to give a used car that you already own to someone, gift tax still applies.
Here's what you need to do: Fill out the Application to Title and Register a Motor Vehicle (Form PS2000) Sign over the vehicle title certificate to the giftee. Submit the necessary documents and any applicable payments to the DVS.
Transferring a Vehicle Title When You Have an Out-of-State Title Proof of ownership. An Application to title and register the vehicle. Valid proof of identification. A copy of the leasing agreement or power of attorney. Proof of a valid MN vehicle insurance policy.
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Gifts. The transfer of a motor vehicle between specifically identified individuals is not charged sales tax if the transfer is a gift for no monetary or other consideration, or other expectation of consideration. The specific individuals are: spouses, parents and children, and grandparents and grandchildren.
Every owner applying for a self-propelled motor vehicle or motorcycle/moped registration, re-registration, or transfer of ownership must provide proof of insurance. Required insurance information includes the insurance company's name, the policy number and the policy expiration date.
The seller may assign ownership on the back of the Minnesota registration card, on an application for Minnesota registration (PS2000) or on a bill of sale that identifies the vehicle being sold and includes the date of sale and the name of the buyer.
If you received a vehicle or vessel as a gift, you are not required to pay California use tax on that gift.
Minnesota doesn't require a bill of sale to transfer a title or register a vehicle. But the document can still offer legal protection for both buyers and sellers.

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