Q&A for How to Sell a Car in California

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What are the rules for letting them test drive?

Community Answer

I don't know about what the law says (if anything), but generally, I ask them for their keys and driver's license before allowing a test drive.

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Question

Who pays for the smog test: the seller or the buyer?

Community Answer

The general rule of thumb is the seller gets the smog test done prior to selling the car. The document is good for 90 days in California.

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Question

How is the tax paid if I sell my car to an individual?

Community Answer

The bank or DMV will calculate taxes due when the buyer pays for the car's registration. You do not need to worry about the taxes as the seller.

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Question

Do I give the registration to the new owner or keep it?

Community Answer

You give it to the new owner.

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Question

How do I sell a financed car?

Community Answer

To sell a financed car one must have a release of lien signed and notarized or a notarized letter from the bank stating the vehicle has been paid for in full. Otherwise the buyer needs to refinance the vehicle in their name.

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Question

My registration just expired. If I sell my car now, should I pay the registration fee for the coming year?

Community Answer

It becomes the new owner's responsibility if you owe for fines, registration, etc.

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Question

Do the plates stay with the car?

Community Answer

Most vehicles have sequentially issued "standard" license plates that remain with the vehicle when ownership is transferred. If the vehicle has a special interest or personalized license plate, these plates belong to the plate owner, not the vehicle.

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Question

How can I return a car I just purchased?

Community Answer

In California, there is no "cooling off" period. In most situations, you are not able to return a vehicle you have purchased.

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Question

How can I check the authenticity of currency?

Community Answer

Meet at a bank for the transfer of cash. The bank will be able authenticate the bills.

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Question

Do I need an official REG 262 form if I'm selling my over 10-year-old car in California?

Community Answer

No, you do not have to submit an odometer reading for a car over 10 years old. You can print out a bill of sale if you wish. You do not need a power of attorney if you are selling it yourself. Thus you do not need an REG 262.

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Question

How do I accept payment when selling a car in California?

Stephanie Lowman

Community Answer

I've sold 4 cars on Craigslist in the last 30 years in California. I only accept cash at the time of title transfer, and I state that in the ad. No payments plans, no checks, no chickens.

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Question

I just purchased my 2020 tags and I did not need a smog test, will one be required if I sell car in the next month?

Taushief Hossain

Community Answer

No you will not because it falls under the "four or less model years" rule.

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Question

What forms do I have to submit to the DMV when selling a car in California?

Taushief Hossain

Community Answer

You only need to submit a release of liability which lets the DMV know that you have sold your car. Be sure to keep a record of the new owner.

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Question

How do I get a car in California sold if there is no longer a pink slip for it?

Taushief Hossain

Community Answer

You would have to get a paperless title that is notarized. Most private buyers will be skeptical thus making it harder.

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Question

How do I sell a car in California if I'm still making payments on it?

Community Answer

You would need to fulfill the payments on your lien in order to allow the new owner to have the vehicle titled in his/her name. You could explain this to the buyer, and take payment directly to the financial institution, make the payoff in person, and then send the title on to the buyer once it is received. By going to the bank directly, the buyer should see that the monies exchanged are in fact being paid for the car (and they are not being ripped off).

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Question

How do I sell a car from Texas with an expired registration in California?

Community Answer

California doesn't care about the registration expiration for an out of state tag. You will first need to smog test the vehicle, and then reference the California site for the required forms (Odometer disclosure for cars newer than 10 years) You may wish to consult an AAA office who is able to conduct most DMV transactions, as well as answer many questions about the process.

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