Cool idea if you live in a no-sales-tax state.

It's a problem if you're subject to sales tax. The parents would pay sales tax when they bought it from the dealer, then you'd have to pay it again when you bought it from them.

Before anyone suggests "put $1000.00 on the bill of sale" be warned that it's fraud, and besides it's been tried and usually doesn't work. The gift transaction is a sale-equivalent and usually subject to tax, but that varies by state. Here in Colorado, the clerks have car value guides and if they suspect money changed hands (like a newer, undamaged car selling cheap) they advise you that they are charging you sales tax on the book value. If you put up a fuss, they freeze the transaction and investigate for fraud.