Free California Car Bill of Sale
Selling a car privately in California is the most document-heavy private vehicle sale in the United States. You have 10 days to complete the title transfer, the seller must provide a smog certificate on most vehicles, and you need to file Release of Liability (REG 138) within 5 days of sale to protect yourself from post-sale tickets, tolls, and liability claims.
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California Car Bill of Sale — What You Need to Know
Sales Tax Details
Base state use tax is 7.25%. District taxes vary by city and county, so effective rates range from 7.25% to 11.75% (parts of Los Angeles County).
Inspection Requirements
Smog certificate required for most cars older than 4 model years. Seller pays; prices vary by station (BAR does not set them), plus an $8.25 certificate fee. Exempt: vehicles 4 model years old or newer, EVs, pre-1976 gasoline cars, and some diesels. Certificate must be <90 days old at transfer.
California Car Sale — Step-by-Step Checklist
- Seller obtains a valid smog certificate (<90 days old) unless exempt — required for most vehicles over 4 model years old.
- Complete a bill of sale (REG 135 is the DMV's form) with VIN, odometer, sale price, and signatures — the DMV requires one only in some cases, such as when the seller is not the owner named on the title.
- Seller completes odometer disclosure on the title (federally required for vehicles of model year 2011 or newer).
- Seller signs title over to buyer and hands over any lien-release documents.
- Seller files REG 138 (Notice of Transfer and Release of Liability) online at dmv.ca.gov within 5 days — this releases the seller from civil/vehicular liability.
- Buyer completes title transfer at any CA DMV office or AAA branch within 10 days, paying 7.25%+ use tax on sale price.
- Buyer provides proof of CA liability insurance (30/60/15 minimums) at the DMV.
Common Pitfalls
- Skipping REG 138: sellers have been successfully sued for accidents and tickets racked up by buyers who delayed title transfer.
- Expired smog certificate: certificates older than 90 days at transfer are rejected — get it right before listing.
- Underreporting sale price: misrepresenting the price on DMV paperwork is tax fraud.
- Missing REG 262 for problem titles: if the title is noncomplying, has an odometer error, or the car has changed hands more than once, the DMV uses REG 262 for the odometer disclosure (it is not notarized).
Pro Tip
For a smooth California car sale: smog certified before you list, REG 138 filed within 5 days of sale, and the buyer handed a complete document package (title + bill of sale + smog certificate + release copy). Doing all three covers the seller's main legal duties.