Free California Used Car Bill of Sale
A used-car sale in California is a paperwork chain: REG 135 documents the deal, the signed Certificate of Title transfers ownership, REG 138 releases the seller's liability within 5 days, and the buyer files everything at DMV within 10 days. Critical wrinkle: California's consumer-protection laws, including the Song-Beverly Consumer Warranty Act ("lemon law"), do NOT cover private-party sales — once the pink slip is signed, the car is legally "as-is" unless the seller misrepresented something material. That makes pre-purchase due diligence (NMVTIS title check, mechanic inspection, VIN history) essential. Sellers should also know that buying cars to resell them in California requires a dealer license (Vehicle Code §§285, 11700).
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California Used Car Bill of Sale — What You Need to Know
Sales Tax Details
7.25%–11.75% depending on where the buyer lives. The buyer pays use tax at registration, not the seller.
Exemption: Some family transfers and gifts may qualify for a use tax exemption, claimed on REG 256 (Statement of Facts) — confirm with the DMV or CDTFA which relationships qualify.
Inspection Requirements
Smog certificate (under 90 days old) required from seller if the vehicle is more than 4 model years old. VIN verification (REG 31) required for any vehicle previously titled outside California.
Registration
Registration for this vehicle type is handled by California DMV — not the same agency that handles cars in California. Plan for separate filings.
California Used Car Sale — Step-by-Step Checklist
- Pull an NMVTIS report (vehiclehistory.gov, ~$5) to verify title brand, salvage history, and odometer
- Complete REG 135 and have both parties sign with date, sale price, VIN, and odometer reading
- Seller signs Line 1 of the Certificate of Title; buyer fills in the new registered owner section
- Seller delivers a smog certificate dated within 90 days for any car more than 4 model years old
- Seller files REG 138 Release of Liability online at dmv.ca.gov within 5 days
- Buyer brings the signed title, smog cert, and ID to DMV within 10 days (plus a bill of sale if the DMV needs one, e.g. the seller is not the titled owner)
- Buyer pays use tax (7.25%–11.75%) plus title transfer fee ($15) and registration at DMV
- Disclose any known defects in writing on REG 135 to defeat future fraud claims
Common Pitfalls
- Buyer assuming California lemon law applies — Song-Beverly only covers dealer sales; private-party cars are "as-is" and the buyer eats any post-sale failure
- Seller buying cars to resell without a dealer license — Vehicle Code §285 treats that as acting as a dealer, which requires a license (§11700)
- Skipping NMVTIS — California has heavy odometer-rollback and salvage-rebuild traffic; a $5 report can save $5,000+
- Writing "as-is" but verbally promising the car "passed smog last week" — verbal misrepresentations still create fraud liability under CC §1572
- Letting the buyer drive away on the seller's plates without filing REG 138 — every parking ticket and toll comes back to the seller for weeks
Pro Tip
Buy with eyes open: pull NMVTIS, get a mechanic to look, and verify the smog certificate. Sell with paper: REG 135, signed title, smog cert, and REG 138 filed within 5 days.