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(Rule 810-6-1- .196) The dealership is responsible for taxes on these transactions. Since it is a gift to the customer, the customer will not owe use tax.
The process for gifted car title transfers is similar to when a car is bought and sold between private parties. The person gifting the vehicle acts as the seller, and the recipient is the buyer. Note that you may be required to have a bill of sale notarized, or provide a gift affidavit.
Since you are gifting the vehicle, you are the seller. The recipient of the vehicle is the buyer. During the transfer process, you may be required to provide a notarized bill of sale or a vehicle gift affidavit (Form MV IRP-15).
You can write your own bill of sale in Alabama as long as you meet the minimum requirements set by the state for including information about the sales transaction.
Can a Bill of Sale be handwritten in Alabama? Technically, yes although most people don't do this. It should have the basic vehicle information like the year, make, and model plus the odometer reading, the purchase price, date of sale, VIN and signatures from both the buyer and the seller.