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How to Sell Your Car in California

By Michael O'Connor | February 18, 2022

When the time comes to sell your car, it is important to know everything you need to do. Selling a car requires more than just finding a buyer. To keep everything above board and valid, you need to make sure that you fill out all the necessary forms and submit everything to the DMV so you don’t end up getting fined later down the road.

This is especially true if you are trying to sell a car in the state of California. California has some extra steps that need to be taken care of for the sale to be final and for you to be released of any liability with the vehicle. Knowing what forms you will need to fill out and what extra steps you need to take will help the process move along smoothly.

How is Selling a Car in California Different?

Selling a car in California is very similar to selling a car in other states with a few exceptions. For the most part, you have a shorter period to get the DMV forms submitted than you would if you were selling that same car in a different state. This complicates things and makes it all the more important that you have everything in order before you start the process.

One of the main things that complicate matters is the fact that you have to make sure the vehicle is in line with California’s emissions standards. Not only do you need a catalytic converter that is in good working order, but the car also needs to pass a smog check before it can be transferred to the new owner. This, along with some other extra paperwork, makes the selling process a little more complicated than it is in other places.

How to Sell a Car in California

Selling a car in California is a relatively simple process but you must do all the necessary steps. Understanding what these steps are can help streamline the process and ensure that you don’t lose any buyers because you don’t have certain things taken care of. In the used car market, preparation is key and if you are ready to go when the vehicle is listed, you can focus on getting the best possible price.

Selling Your Car to a Dealership:
One of the easiest ways to sell your vehicle in California is to sell it to a used car dealership. The major benefit of doing this is that they will walk you through all the paperwork and necessary steps. However, you may not get the most money that you possibly could from the sale. Because the dealership needs to make money on the sale as well, they will often offer you less than you could get from making a private sale.

One of the best ways to sell your car to a dealership is to look for one that sells the particular car you are trying to sell. For example, if you are trying to sell a used Toyota, selling it to a Toyota dealership will often result in a higher sale price. This is because the dealership has built-in customers for that particular car.

Selling Your Car Privately:
If you want to get the most money for your vehicle, the best way to do that is to sell it privately. However, this requires a lot more work on your end and you will need to make sure that everything is done correctly to avoid fines or end up with liability issues. Understanding all the steps can help you make the most out of your sale.

Important Documents for Buying or Selling a Car in California:

One of the main differences between selling a car in California and selling one in another state is the amount of paperwork that needs to be done. Knowing which forms you need can help you be ready when you find a buyer and keep you from incurring any fees after the sale has been made.

Certificate of Title:
Before you can sell a car in California, you need to make sure that you have your certificate of title. This document contains information that is incredibly important and links you to the vehicle in the eyes of the DMV. This information includes things like the owner’s name and address, the vehicle identification number, which is also known as the VIN, the license plate number, the make and model of the car, and the odometer disclosure when the car was purchased. You will need to have this in order for the new owner to do the title transfer and get the title in their name once the purchase has gone through.

If you don’t have the California certificate of title, there are things you can do to get one. You will have to apply for a Duplicate or Transfer of Title with the local DMV office. This form is called the REG 227 and can be obtained at the California DMV office. If there are errors on the title, you will have to get a form called REG 101, which is a Statement of Error or Erasure. You will need to have at least two forms of ID and all the necessary information about the car to obtain the new vehicle title.

Bill of Sale:
A bill of sale is an incredibly important component of selling a car and one that is often overlooked. The bill of sale acts as an official receipt for the sale and benefits both the buyer and the seller by officially documenting the transaction. You can get a bill of sale from the DMV office or you can download one and print it out from the DMV website. Both will be considered valid in the state of California.

The bill of sale is important because it protects both you as the seller and the new owner. It acts as backup documentation in the event that the new owner tries to hold you liable for any accidents or crimes after the sale has been made. It will also protect the new owner in case there is any damage or issues that were not disclosed when the sale was made. Having one handy will help attract better buyers who want to make sure everything is above board with the transaction.

Statement of Facts:
If you are selling the car to a family member, you will need a Statement of Facts form, which is also called REG 256. This form exempts the sale from a few different things that you or the new registered owner would otherwise be liable for. It should be filled out if you are selling the car to a parent, grandparent, child, grandchild, brother, sister, spouse, or domestic partner.

The Statement of Facts form makes the sale exempt from use tax as well as a smog certification. This can save both you and the buyer some money on the sale and make the whole process quite a bit easier.

Title Holder Release:
This form is also called REG 166 and is necessary if there is still a lienholder on the vehicle. This means that if you still owe money on the car loan and the new buyer is taking over the payments with their ownership of the vehicle, the RED 166 form will be necessary. You will also need to get this form signed by the lienholder to validate that you are authorized to make the sale.

Vehicle/Vessel Transfer and Reassignment:
This form, which is referred to as REG 262, is necessary to let the DMV know that the vehicle has been sold in a certain condition. Here, you will disclose the odometer reading as well as the VIN. Both you and the new buyer will need to sign this form and you can also include a copy of the bill of sale.

Notice of Transfer and Release of Liability:
This form needs to be completed and sent to the DMV within five days of the sale. It is also called form REG 138 and it informs the DMV that you are officially no longer liable for anything that happens to or with the car from that date. This will help ensure that you are not held responsible for any parking tickets or infractions that the new owner may incur now that they have bought the vehicle.

Valid Smog Certification:
In California, your car needs to pass a smog inspection before you can sell it and the title can be transferred. This means that it must have a working catalytic converter and that all the emissions equipment is in good working order. For example, if your check engine light is on, the vehicle will automatically fail the smog. This helps prevent the sale of cars that won’t uphold the emissions standards of the state.

Vehicle Inspection:
If you want to increase your chances of selling your car in California, it is a good idea to get a vehicle inspection and to have a vehicle history report that you can present to potential buyers. This can be used as a selling point in your listing and will help attract buyers that are serious about making the purchase.

Where to Post Your Listing:

You will need to post your listing in places where it is going to get the highest number of views. In California, Craigslist is one of the most popular listing sites and gets a lot of traffic, especially if you are in one of the major metropolitan areas like Los Angeles or the San Francisco Bay Area.

You can also sign up with aggregate services that will list your car in a variety of online marketplaces, such as Autolist or CarGurus, to help get it the maximum amount of visibility.

However, if someone is going to be purchasing your vehicle from out of state, there may be other steps that you need to take. The online marketplace will be able to help you with this.

Potential Fees:

You will have to pay the fees for selling your car within 10 days of making the sale. These include the $15 transfer fee as well as any other penalty fees for things like duplicate titles if you need to acquire those to make the sale.

Depending on the county you are selling the car in, you will also need to pay taxes like use tax to transfer the title.

Submitting the Paperwork:

Make sure that the new buyer has signed all the necessary forms and has agreed to register the new car in their name as soon as possible.

Then, you will need to submit all the paperwork within five to 10 days of making the sale. You can either drop the forms off at the Department of Motor Vehicles in your area or you can mail them as long as they are postmarked within the required amount of time.

Final Thoughts

While selling a car in California requires a few extra steps for things like smog checks and the release of liability, it is still a fairly simple process. By knowing what steps you need to be taking and what forms you need to have ready when you make the sale, you can be sure that you won’t run into any issues. Taking the time to be prepared will help your sale go smoothly and get your car sold as soon as possible.