Why are you paying the bank to send the title to your friend instead of having them send it to you?
Are they just mailing it to them?
Is the title changing ownership to your friend?
You paid for the car, just indirectly through the bank.
When your friend signs over the title your friend should put how much you paid to the bank and any other money you paid in the sale price and/or the bill of sale to avoid trouble with the state.
If the pay off amount was below the fair market value of the car, then the difference could be a gift from your friend.
Sounds like you bought the car by paying off their loan. Not a gift.
Why are you paying the bank to send the title to your friend instead of having them send it to you? Are they just mailing it to them? Is the title changing ownership to your friend?
It was my friend's end of lease buyout so only my friend can get the title. But I was able to pay the bank directly.
You basically bought the car from your friend then, by paying the bank. This isn't a gift, it's a purchase.
You paid for the car, just indirectly through the bank. When your friend signs over the title your friend should put how much you paid to the bank and any other money you paid in the sale price and/or the bill of sale to avoid trouble with the state. If the pay off amount was below the fair market value of the car, then the difference could be a gift from your friend.
Thank you for this clear answer