What you'd probably have to do is have the New Jersey title transferred to your name. Then transfer that to Pennsylvania. In order to do that tax-free you would probably have to call it a gift. Unless your parents have given you too much this year in which case you'd have to pay capital gains tax on it.
They told me that since they're a balance left on the loan that doesn't belong to my dad, but the loan company, he can't give it as a gift.
Wow. That's a pain. Can you leave it in your father's name until the loan is paid off?
No, because then it'd have to be insured in his name in my state, and I think that's insurance fraud. The loan still has 4 years to go.
Well, I'm out of ideas. I hope you manage to figure out some way to avoid it, though. I know I'd be really pissed off if that happened to me.