You get the call. The car is yours. Now what?
Most people entering a car giveaway have never thought past the moment of winning, and the weeks that follow catch them off guard. Here is what actually happens, in order, and what it costs you.
What happens when you win a car in a giveaway?
You are notified through the channel named in the official rules, you sign an affidavit confirming eligibility, you owe income tax on the car's fair market value, and then the title is transferred and the vehicle delivered. From notification to keys in hand is typically several weeks. At no point does a legitimate operator ask you for a payment to release the prize.
That is the short version. The detail matters, so here is each stage.
1. The notification
A legitimate sweepstakes contacts winners the way its official rules say it will — usually phone, email or postal mail, and often through the independent administrator rather than the company itself.
Two things follow from that.
Nobody legitimate announces your win only in a social media DM. Impersonation accounts are the single most common scam in this category. They copy a real brand's name and photos, message that brand's followers, and ask for a fee to release a car that was never theirs to give.
You will usually have a deadline. Rules commonly require a response within a few business days. Miss it and an alternate winner can be drawn. Check the notification window in the rules of anything you enter.
2. The affidavit
Before a prize is released you will be asked to sign an Affidavit of Eligibility, Liability and Publicity. It confirms you meet the eligibility terms, releases the sponsor from liability connected to the prize, and usually grants permission to publish your name and city.
It will also ask for your Social Security number. That is normal and it is for tax reporting — the sponsor has to file a 1099 in your name. It is the one piece of sensitive information a real operator legitimately needs.
What they will never ask for is a payment, a card number, or bank details in order to release the car.
3. The tax bill
This is the part that surprises people most.
In the United States a sweepstakes prize is treated as ordinary income at its fair market value. The sponsor files an IRS Form 1099 for the value of the car, and you owe federal income tax on that amount — plus state income tax where your state charges it.
On a $55,000 car, depending on your bracket and your state, that can be a five-figure bill due at your next filing. The car does not come with the cash to pay it.
Plan for this before you enter, not after you win. Some winners set money aside; some sell the car; some operators offer a cash alternative partly for this reason. There is no version where the tax simply doesn't apply.
This is general information, not tax advice. Talk to a professional about your own situation.
4. Title, registration and delivery
Once the paperwork clears, the title is transferred into your name and the car is arranged for delivery or collection.
Expect to need:
- A valid driver's license permitting you to operate the vehicle in your state
- Proof of insurance before you take delivery
- Registration and licensing at your own cost
Prize vehicles are normally awarded as-is, with no warranty from the sponsor. If the car is modified — common in enthusiast giveaways — check your state's emissions and safety inspection requirements before accepting, because compliance becomes your responsibility.
Transport takes time. Paperwork, transport scheduling and title processing are real logistics, not stalling.
5. Publicity
Most rules let the sponsor publish your first name, last initial and home city. That is how published winner lists work, and it is one of the few ways an outsider can verify a giveaway is real.
If you would rather not appear anywhere, read the publicity clause before entering. It is usually a condition of accepting, not an option.
The one rule that protects you
Every scam in this category eventually asks for money. A release fee, a shipping charge, an insurance payment, a customs cost, taxes paid directly to them.
No legitimate sweepstakes operator asks a winner for a payment of any kind. Your tax is paid to the IRS when you file — never to the company. If anyone contacting you about a prize asks for money or card details, that is the end of the conversation.
You can report it to the FTC at reportfraud.ftc.gov.
How Speed Junkies handles it
Our giveaways are administered by American Sweepstakes & Promotion Co., Inc., an independent third-party administrator based in Rochester, New York. They conduct the drawing and they contact the winner by phone. We do not select our own winners.
Winners are published by name and home state on our past winners page. The full notification process, deadlines, tax responsibility and publicity terms are set out in our official rules — worth reading before you enter, not after.
And to be explicit: we will never ask a winner for a payment to release a prize. Nobody from Speed Junkies will ever DM you to say you have won.
No purchase necessary to enter or win. A purchase will not increase your chances of winning. See Official Rules for eligibility, the free entry method, and full details.
Frequently asked questions
Do you have to pay taxes on a car you win?
Yes. In the United States a won vehicle is taxable income at its fair market value. The sponsor files an IRS Form 1099 in your name, and you owe federal income tax on that value plus state tax where applicable. The tax is paid to the IRS when you file, never to the sweepstakes company.
How long does it take to receive a car you won?
Typically several weeks. The winner signs an affidavit, eligibility is verified, the title is transferred, and transport is arranged. Paperwork and shipping are the two slowest stages.
Can you take cash instead of the car?
Only if the official rules offer a cash alternative. Many do not. Check the prize section of the rules before entering if that matters to you.
Do you need insurance before you can collect a prize car?
Usually yes. Most rules require a valid driver's license and evidence of legally required insurance before delivery, and registration costs fall to the winner.
Will a real sweepstakes ever ask a winner for money?
No. No legitimate operator asks a winner for a fee, a shipping charge, or tax paid directly to them. A request for payment to release a prize means the message is fraudulent, regardless of whose name is on it.
Why does the affidavit ask for a Social Security number?
For tax reporting. The sponsor must file a 1099 for the prize value, which requires your taxpayer identification. It is the one piece of sensitive data a legitimate operator genuinely needs, and it is requested on a signed affidavit — never over social media.