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 flipping more than 5 vehicles per year in California requires a dealer license under Vehicle Code §285.
Free PDF includes a small watermark at the bottom. Remove it for €4.99. Already subscribed? Sign in.
California Used Car Bill of Sale — What You Need to Know
Sales Tax Details
7.25%–10.75% depending on county; DMV uses the greater of sale price or market value. The buyer pays use tax at registration, not the seller.
Exemption: Family transfers between spouse, parent, child, grandparent, grandchild, sibling, and registered domestic partner are exempt with REG 256.
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 signs Line 1A
- 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 title, REG 135, smog cert, and ID to DMV within 10 days
- Buyer pays use tax (7.25%–10.75%) 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 flipping more than 5 cars per year without a dealer license — a misdemeanor under Vehicle Code §285 with fines up to $1,000 per vehicle
- 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.