Private Party Car Sale in California — State Requirements
Selling your car to a private buyer in California? Plates go with the vehicle. Smog certificate is required. Buyer has 10 days to transfer the title.
Required Documents for California Private Car Sale
If the title has been lost, the seller must first obtain a duplicate title (REG 227, $21) before selling. Selling on a "release of liability" alone without a title transfer is not valid in CA.
License Plates in California Private Sales
In California, license plates stay with the VEHICLE, not the seller. Do not remove the plates when selling — the buyer continues using them until they register the vehicle in their name.
Sales Tax on Private Car Sales in California
Buyer pays use tax to CA DMV when registering the vehicle. The use tax rate is the buyer's home county sales tax rate, applied to the purchase price. Private-party sales are NOT exempt from California use tax.
CA use tax ranges from 7.25% to 10.75% depending on county. Proof of purchase price (bill of sale) is used by the DMV to calculate the tax. The CA DMV may assess tax based on fair market value if the price appears below market.
Seller Notification Requirement in California
California sellers must submit a Notice of Transfer to the CA DMV within 5 days of the sale. This is critical — it transfers parking tickets, tolls, and civil liability to the buyer. Submit online at dmv.ca.gov (free) or use REG 138.
Seller Liability After Sale in California
Seller's liability ends upon submitting the Notice of Transfer to CA DMV. Without timely submission, the seller remains liable for parking tickets, tolls, and civil claims arising from the vehicle.
CA law requires buyers to retitle within 10 days. If a buyer fails to do so and incurs citations, the seller's Notice of Transfer protects them retroactively to the sale date — this is why submitting within 5 days is critical.
Frequently Asked Questions
California plates stay with the vehicle — a unique rule compared to most states where sellers keep their plates. Sellers who do not submit the Notice of Transfer within 5 days remain liable for the vehicle even after sale.