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Oprah Winfrey once gave away 276 free cars to her studio audience—but there was one catch

The giveaway thrilled the audience initially, but a big catch had winners fuming despite the generous gift.

Oprah Winfrey needs no introduction. Her influential career in the entertainment industry speaks for itself, as does her philanthropy. For instance, one of the most iconic moments in television history occurred on 'The Oprah Winfrey Show' when the veteran host famously declared, "You get a car! You get a car! You get a car!" 276 studio audience members were gifted brand-new Pontiac G6 Sports Sedans. However, their initial excitement was dampened by an unexpected financial reality— receiving the cars came with a hefty tax bill that the winners had to cover themselves, as reported by Market Realist.

When the episode aired in 2004, The Guardian reported that each vehicle was valued at $28,000. Given the substantial worth of the prize, the audience's enthusiastic reaction was completely natural. One guest, Tiffany Self, recalled the overwhelming experience, "Everybody was so shocked that they just didn't know how to respond. It was a really good thing that Oprah had [paramedics] on the floor— I'm fairly young, and healthy, and even I felt like I might have a heart attack."

However, the initial euphoria soon faded when the audience members were informed off-air that the cars came with a 'gift tax' of about $7,000, which they had to pay to keep the vehicle. Even with the tax, folks still received a significant 75% discount on a brand-new car. But for many recipients, the tax obligation presented a major challenge. Self reflected, "What a coup, there was no other way they could have got that kind of publicity." 

During the 19th season premiere, Winfrey first invited 11 teachers onto the stage, gifting them each a car as part of their 'wildest dream.' She then announced that a 12th vehicle would be given to one lucky audience member through a key-based selection process. The producers handed out boxes to everyone, with only one supposedly containing a key. When the attendees simultaneously opened their boxes, each one contained a key, leading to the now-legendary "You get a car!" moment. Despite the excitement, the podcast host acknowledged the unexpected challenges that followed. "It was devastating after, because ‘gift tax’ is a thing, and it’s always a complicated thing when you’re giving stuff away." She further explained that while the show covered the sales tax and registration costs for each car, the gift tax was the recipients' responsibility.

To mitigate the issue, the producers gave winners the option to decline the vehicle and instead receive the equivalent cash amount. Despite this alternative, some recipients still voiced their frustrations publicly. Reflecting on the situation, Erspamer shared on the podcast, “We put our whole soul into this moment of television and with real intention to do something good, and so when people had a negative reaction, it like literally hurt our feelings.”