How to Buy and Sell a Car in California: A Complete Guide
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Planning to buy or sell a car in California? Learning how the process works — and what documents you'll need — can facilitate a smooth transaction. This guide covers the essentials of how to buy and how to sell a car in California, including California title transfers, smog checks, and legalities to be aware of.
Understanding the Required Documents for Selling a Car in California
To sell a used car in California, you need its certificate of title. The title lists the owner's name, address, and basic information about the vehicle. It also includes space for the seller and buyer to sign off on the car's sale and purchase.
Another document that may be necessary is the California bill of sale form. This is only required if the seller of the car isn't listed as the vehicle's owner on the title. If that's the case for your transaction, make sure the legal owner listed on the original title signs the bill of sale.
There's no harm in obtaining a bill of sale, even if it's not legally required. Having it provides an official outline of the purchase terms.
Sellers must also complete a Notice of Transfer and Release of Liability. Get this online through California's Department of Motor Vehicles (DMV) website. It officially notifies the DMV of the transfer of ownership.
Smog Check and Other Seller Requirements
In most cases, California requires owners to obtain valid smog certifications before selling a vehicle. You'll provide the certification to the buyer during the sales process. DMV-approved stations handle smog checks, and most don't require an appointment.
Vehicles that fall into these categories may qualify for a smog check exemption:
- Gas-powered cars manufactured in the last four years
- Electric vehicles
- Gas-powered vehicles with a model year of 1975 or older
Some larger trucks and older diesel vehicles also won't require a smog check.
How To Price Your Car and Prepare It for Sale
It's only natural to assume your vehicle is worth the top price. But its condition may impact what you're able to sell it for. Consider taking it to a mechanic before you put it on the market. They can advise you of any critical issues you may want to repair so you can charge what it's worth.
Several websites can help you estimate a reasonable sales price based on your vehicle's make, model, and location. Try Kelley Blue Book or Edmunds for a quick appraisal.
Filing the Title Transfer and Bill of Sale
After finalizing a sale or California car donation, save a copy of the signed title and bill of sale for your records. You may need them if a question comes up concerning the transaction. Also, plan to notify the DMV of the transfer within five days. Your part is pretty much done — it's now the buyer's responsibility to register the vehicle in their name.
Buyer's Guide
Potential buyers have their own responsibilities during a California vehicle sale. Consider these factors when it comes time to purchase your next car.
Verifying Vehicle History and Condition
There's a lot of room for negotiation when buying a car. To make the most of your purchase, thoroughly review a vehicle's condition before committing to a purchase. A good starting place is the car's history, which you can obtain through a service such as Carfax or Autocheck. All you need is the vehicle's identification number (VIN) to pull a report.
Also, ask for the vehicle's maintenance records. Consider taking the car to a mechanic you trust to get an honest overview of its condition. Their inspection can alert you to problems and give you more leverage in the purchasing process.
How To Register Your New Car and Pay Taxes and Fees
After buying a car in California, you have up to 10 days to transfer ownership and register it in your name. The basic registration process involves completing a California application for title and sharing the vehicle's smog certification with the DMV. If the car is less than 10 years old, verify the title includes an odometer disclosure with its mileage at the time of sale.
You'll pay registration fees and applicable California used car sales taxes at the DMV. The basic fee for new registrations is $74, but you'll likely owe other fees, too. Some of the costs typically paid at registration time include:
- Vehicle license fee
- Transportation improvement fee
- County or district fee
- California Highway Patrol fee
Certain title transfer fees vary based on the car's purchase price and your location. The DMV provides a registration fee estimator you can use to plan your expenses.
Secure Your New Ride
Buying a new set of wheels is exciting. You can look forward to many days spent enjoying its features while driving the streets of sunny California. But it's also a big investment that warrants auto insurance protection.
EverQuote can help you find your next California car insurance policy. Our free tool lets you compare custom insurance rates from top providers. It just takes a few minutes to try, and it may save you money!