To buy a used car in California, you need to verify the title is clean, get a valid smog certificate from the seller, sign over the title with a bill of sale, insure the vehicle, and submit the transfer paperwork to the DMV within 10 days of the sale along with the use tax and a $15 transfer fee. Private-party sales put most of the paperwork on you as the buyer. Dealer sales shift much of it to the dealership, at a price.
Check the Title Before You Pay
Confirm the title is in the seller’s name and free of liens. If a lender still has an interest in the car, the seller cannot transfer clear ownership to you. Ask for a lien release letter from that lender, or verify the status through the DMV or a vehicle history report.
California also adds a “brand” to a title after certain events, most commonly a salvage brand after a serious accident or major damage, a revived salvage brand after such a vehicle is repaired and re-registered, and a water damage brand after flooding or submersion. A branded title cuts resale value and can signal hidden mechanical problems. You can check for brands through DMV title records or a report drawn from the National Motor Vehicle Title Information System.1California State Department of Motor Vehicles. Branded Titles
Whether you’re buying from a dealer or a private seller, an independent pre-purchase inspection by a mechanic you trust is the single best way to avoid costly surprises after the sale.
Get the Smog Certificate From the Seller
California will not process a change of ownership on most vehicles without a valid smog certificate. Under Vehicle Code Section 4000.1, the seller is responsible for providing it, not the buyer.2California Legislative Information. California Vehicle Code VEH 4000.1 The inspection must have been completed within 90 days before the transfer date.
Some vehicles are exempt from the smog check entirely:
- Electric vehicles
- Gasoline, hybrid, and alternative-fuel vehicles from model year 1975 or older
- Diesel vehicles from model year 1997 or older, or with a gross vehicle weight rating above 14,000 pounds
- Motorcycles
Gasoline, hybrid, and alternative-fuel vehicles that are four model years old or newer also skip the inspection when ownership changes, but you as the buyer pay a smog transfer fee instead.3California Bureau of Automotive Repair. Smog Check: When You Need One and What’s Required If your vehicle isn’t exempt, don’t hand over money until the seller produces a passing certificate.
Sign the Title and Write a Bill of Sale
The California Certificate of Title transfers ownership under Vehicle Code Section 5600. The seller signs the release line. You complete the buyer’s section with your full legal name, current address, and the purchase date. Every entry must be legible and match your government-issued ID, because errors cause processing delays at the DMV.4California State Department of Motor Vehicles. Vehicle Industry Registration Procedures Manual – Transfers – Introduction
The seller must also record the exact mileage on the title under Vehicle Code Section 5906.5. Federal law exempts vehicles 20 or more model years old from mileage reporting, so for transfers in 2026, a car from model year 2006 or earlier does not need an odometer entry on the title.5Federal Register. Odometer Disclosure Requirements
Write a bill of sale as a second record of the transaction. The DMV provides Form REG 135, but any written bill of sale that identifies the vehicle works, and it does not need to be notarized or witnessed.6California State Department of Motor Vehicles. Bill of Sale (VC 1652) Include the VIN, make, year, model, and the agreed purchase price. The DMV uses that price to calculate your use tax.
If the seller has lost the original title, they can use Form REG 227 (Application for Replacement or Transfer of Title) to request a replacement and complete the transfer in one step. They sign under penalty of perjury that the information is accurate, and the original title is canceled when the replacement issues.7California DMV. REG 227 – Application for Replacement or Transfer of Title
Insure the Car Before You Drive It
You must have insurance in place before the car touches a public road. Insurance Code Section 11580.1(b) sets the minimum liability coverage at $30,000 for injury or death of one person, $60,000 for injury or death of more than one person, and $15,000 for property damage.8California State Department of Motor Vehicles. Auto Insurance Requirements If you already have a policy on another vehicle, call your insurer and add the new car before you drive it home. You will need to show proof of coverage when you register it.
Pay Use Tax and the Transfer Fee
Private-party buyers owe California use tax on the purchase, because no dealer collected sales tax at the counter. Revenue and Taxation Code Section 6201 imposes the tax on tangible personal property purchased for use in the state.9California Department of Tax and Fee Administration. Sales and Use Tax Law – Section 6201 The rate starts at 7.25 percent statewide, and local district taxes can push the combined rate higher depending on where you live.10California Department of Tax and Fee Administration. California City and County Sales and Use Tax Rate Information The tax is calculated on the purchase price shown on the bill of sale.
The DMV also charges a $15 transfer fee for most passenger vehicles.11California State Department of Motor Vehicles. Registration Fees Miss the 10-day filing window and the DMV adds late penalties that grow the longer you wait.
File With the DMV Within 10 Days
Vehicle Code Section 5902 gives you 10 days from receiving the signed title to submit your transfer paperwork.12California Legislative Information. California Vehicle Code VEH 5902 You can file online through the DMV’s Virtual Office, by mail, or in person at a field office. Bring or attach:
- The signed title, with the seller’s release and your buyer information completed
- The bill of sale showing the purchase price and vehicle details
- The smog certification, unless the vehicle is exempt
- Proof of insurance meeting California’s minimum liability requirements
- Payment for the transfer fee and use tax
Once the DMV processes the application, you get a new registration card and, later, a title in your name.
Make Sure the Seller Files the Release of Liability
The seller has a separate obligation under Vehicle Code Section 5900 to file a Notice of Transfer and Release of Liability within five calendar days of the sale, using Form REG 138 or the DMV’s online portal.13CA.gov. Release of Liability That filing cuts the seller loose from parking tickets, traffic violations, and civil claims tied to the vehicle after the sale date. Confirm the seller plans to file it. It protects both of you during the gap before the DMV processes your title transfer.
If You’re Buying From a Dealer Instead
Dealer sales come with two extra protections and one extra cost.
The FTC’s Used Car Rule (16 CFR Part 455) requires every dealer to display a Buyers Guide on each used vehicle offered for sale, posted prominently and visible at all times except during a test drive.14eCFR. Part 455 Used Motor Vehicle Trade Regulation Rule The guide states whether the car is sold “as is” or with a warranty, and if a warranty is offered, exactly which systems are covered and what share of repairs the dealer will pay. The Buyers Guide becomes part of the sale contract, so a warranty promised on the guide is enforceable.
Dealer sales also generally come with an implied warranty of merchantability unless the dealer explicitly marks the vehicle “as is” on the Buyers Guide. Private-party sales are almost always “as is,” with no such backstop.
On the cost side, Vehicle Code Section 4456.5 caps the document processing charge at $85 for dealers who participate in the DMV’s electronic titling program as a private industry partner, and $70 for dealers who do not. The dealer must itemize the charge separately, not bury it in the vehicle price. A quoted doc fee well above these caps is worth questioning before you sign.