How to Sell a Car Out of State from California
Everything a California seller needs to know: title signing process, tax rules, smog requirements, notice of sale, safe payment methods, and how shipping works.
Title Signing in California
Sign the back of the California title in the Seller/Transferor section. Fill in the buyer's name, address, sale price, and date. Do NOT mail the title — hand it to the buyer or ship via certified mail with tracking. Complete REG 138 (Notice of Transfer and Release of Liability) within 5 days of sale, even for out-of-state buyers.
📋 California Title Note
California's REG 138 is mandatory regardless of where the buyer lives. Filing online at dmv.ca.gov immediately releases your liability for parking tickets, tolls, and accidents after the sale date.
Sales Tax Rules for Out-of-State Buyers
California does NOT collect sales tax for an out-of-state buyer. The buyer pays sales tax (or use tax) to their home state when they register the vehicle. Do not attempt to collect California sales tax from an out-of-state buyer.
Some buyers will try to lowball the bill of sale price to reduce their home-state use tax. This is tax fraud — write the actual sale price. You have no liability for what the buyer reports to their home state, but document the real transaction.
Smog and Emissions Requirements
California requires a smog check before private sale for vehicles 6+ model years old, regardless of where the buyer lives. An out-of-state buyer does not exempt you from the smog requirement.
Complete the smog check before listing the vehicle. Provide the buyer with the smog certificate. If the vehicle fails, negotiate the cost of smog repairs into the sale price, or certify it as AS-IS with no smog.
Notice of Sale in California
File REG 138 (Notice of Transfer and Release of Liability) within 5 days of the sale date. Do this online at dmv.ca.gov. The filing protects you from liability after the sale.
The REG 138 is the single most important step for California sellers. Without it, parking tickets and red-light camera violations can follow you for years after the sale.
Shipping vs. Pickup for Out-of-State Buyers
Many out-of-state buyers ship vehicles via enclosed or open carrier transport. Reliable transport brokers: Montway, AmeriFreight, Ship.cars. Estimated cost: $600–$1,500 depending on distance. The buyer typically arranges and pays for shipping — your responsibility ends when you hand the keys and title to the transporter.
If the buyer arranges transport, document the vehicle condition thoroughly with photos and video before the transporter picks it up. Get the transporter's BOL (Bill of Lading) as your record.
Safe Payment Methods
- ✓Bank wire transfer (ACH or wire) — safest for large transactions
- ✓Cashier's check from a verified bank branch — call the bank to verify before releasing title
- ✓In-person cash — for amounts under $5,000 (larger amounts trigger IRS reporting at some institutions)
⚠️ Payment Fraud Warning
Never accept a personal check or PayPal/Venmo for a vehicle sale to an out-of-state buyer you've never met. Wire fraud and counterfeit cashier's check scams specifically target out-of-state vehicle sales.
Common Issues When Selling Out of State from California
Define responsibility for transport damage in writing before the transporter takes the vehicle. The standard practice is that the buyer bears transport risk — but put it in the bill of sale.
California-Specific Note
California is the most common out-of-state seller state due to its large population and active used-car market. The California Air Resources Board (CARB) smog exemption for out-of-state buyers does NOT exist — all CA smog laws apply to the sale regardless of where the buyer registers.
Selling Out of State FAQ — California
Do I need to collect sales tax when selling a car to an out-of-state buyer from California?
No. California does NOT collect sales tax for an out-of-state buyer. The buyer pays sales tax (or use tax) to their home state when they register the vehicle. Do not attempt to collect California sales tax from an out-of-state buyer. Some buyers will try to lowball the bill of sale price to reduce their home-state use tax. This is tax fraud — write the actual sale price. You have no liability for what the buyer reports to their home state, but document the real transaction.
What do I need to sign on the title when selling to an out-of-state buyer in California?
Sign the back of the California title in the Seller/Transferor section. Fill in the buyer's name, address, sale price, and date. Do NOT mail the title — hand it to the buyer or ship via certified mail with tracking. Complete REG 138 (Notice of Transfer and Release of Liability) within 5 days of sale, even for out-of-state buyers.
Does California require a smog or emissions check before selling to an out-of-state buyer?
California requires a smog check before private sale for vehicles 6+ model years old, regardless of where the buyer lives. An out-of-state buyer does not exempt you from the smog requirement. Complete the smog check before listing the vehicle. Provide the buyer with the smog certificate. If the vehicle fails, negotiate the cost of smog repairs into the sale price, or certify it as AS-IS with no smog.
What is the safest way to receive payment for an out-of-state car sale from California?
Bank wire transfer (ACH or wire) — safest for large transactions; Cashier's check from a verified bank branch — call the bank to verify before releasing title; In-person cash — for amounts under $5,000 (larger amounts trigger IRS reporting at some institutions). Never accept a personal check or PayPal/Venmo for a vehicle sale to an out-of-state buyer you've never met. Wire fraud and counterfeit cashier's check scams specifically target out-of-state vehicle sales.
Who pays for shipping when selling a car out of state from California?
Many out-of-state buyers ship vehicles via enclosed or open carrier transport. Reliable transport brokers: Montway, AmeriFreight, Ship.cars. Estimated cost: $600–$1,500 depending on distance. The buyer typically arranges and pays for shipping — your responsibility ends when you hand the keys and title to the transporter. If the buyer arranges transport, document the vehicle condition thoroughly with photos and video before the transporter picks it up. Get the transporter's BOL (Bill of Lading) as your record.
Do I need to file a notice of sale after selling to an out-of-state buyer in California?
File REG 138 (Notice of Transfer and Release of Liability) within 5 days of the sale date. Do this online at dmv.ca.gov. The filing protects you from liability after the sale. The REG 138 is the single most important step for California sellers. Without it, parking tickets and red-light camera violations can follow you for years after the sale.