BillOfSaleNow

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.

🔄
Plates
Go with vehicle
📅
Title Deadline
10 days for buyer
🔬
Smog
Required
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Bill of Sale
Recommended

Required Documents for California Private Car Sale

Signed California Certificate of Title (back of title completed by seller)
Valid smog certificate (passed within 90 days, if required)
Notice of Transfer and Release of Liability (seller submits to DMV within 5 days)
Bill of sale (optional but recommended)
Vehicle Verification (REG 31) if VIN has discrepancies

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

Plates Stay With Vehicle

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

Form: Notice of Transfer and Release of Liability (online or REG 138)

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

Do license plates stay with the seller or vehicle in California?
In California, plates stay with the VEHICLE — do not remove them when selling. 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.
How long does the buyer have to transfer title in California?
The buyer has 10 days to transfer the title in California. The buyer must transfer the title into their name within 10 days of purchase. Late transfer incurs a $15 penalty, increasing to $30 after 20 days. The buyer must also get a passing smog certificate before DMV will complete the transfer.
Is a smog certificate required for private car sales in California?
Yes. California requires a passing smog/emissions certificate for private-party sales. Most private-party car sales in CA require a passing smog certificate within 90 days of the sale. Exceptions: vehicles 4 years old or newer, diesel over 14,000 lbs GVWR, electric vehicles, and motorcycles. The seller typically pays for the smog check.
How is sales tax handled in a California private-party car sale?
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.
California-Specific Rules

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.

Private Party Car Sale in Other States

Trusted by private vehicle sellers nationwide

45% faster sale

Vehicles whose listings include a history report spend ~45% less time on site before selling, and report-viewers are 5x more likely to become a lead.

Source: Experian / AutoCheck

$4,000 avg loss

NHTSA estimates 450,000+ vehicles per year are sold with rolled-back odometers — the average victim loses about $4,000 in downstream repair costs.

Source: NHTSA

17.5M private sales/yr

About 17.5 million private-party vehicle transactions happen in the U.S. each year — roughly 47% of the used market.

Source: Cox Automotive 2024

1 in 3 buyers

Roughly 1 in 3 used-car buyers say they suspect private sellers are hiding mechanical problems — documentation closes that trust gap.

Source: JW Surety Bonds (n=3,000)

$60–$85 mobile notary

Mobile notary visit minimums run $60–$85 — higher on weekends, plus per-mile travel fees. State-formatted documents skip the trip.

Source: Thumbtack / NNA