Document Checklist for Selling a Used Car in California

Privately selling a car in California involves more than just trading it for money. You also require a printable bill of sale and other essential documents. In this post, we’ll outline the specific forms necessary for putting your California car on the market.

The Vehicle Title

Your car’s title (or ‘pink slip’) contains full details on the vehicle and its ownership. It should have the 17-digit Vehicle Identification Number, for example. Beyond this, it also comes with the car’s make, model, and year.

It will also have your name and address alongside information about active loans. If you’re still paying off the car, this poses a problem. You should finish paying before you carry out a sale. In some cases, however, the lienholder might agree to continue the plan with a new owner.

Both sides must complete the title’s Transfer of Ownership section. This sets out a vehicle’s new owner. The buyer must then submit the form to the DMV to finalize the title change.

The Bill of Sale

A bill of sale serves as legal proof of a car sale. This gives you better backing in court if a buyer tries to dispute the sale. However, you’ll need to fulfill a few key requirements.

For example, your bill of sale must have a full description of the car. This has to go into full detail about its condition. Note any “quirks” it has that could affect the asking price. Anything that your other documents won’t cover must go in this document.

Hiding details about the car will look suspicious to a buyer. It could also count as you misleading them about the purchase.

Use an online template for your bill of sale. This will come with every field you need for it to hold up in court. California-specific forms won’t require notarization or any extra witnesses.

Getting a Smog Check

If you’re selling your car, you might need to include a smog check. Once you do this, you’ll get a certificate that’s valid for 90 days. Make sure this is as close to the sale date as possible.

There are plenty of smog testing stations across all of California. However, there are a number of exceptions to these tests. Here are a few instances where you won’t need a smog check:

• Your vehicle is less than eight years old.
• Your vehicle is an electric car.
• Your vehicle runs on natural gas.
• Your vehicle is a pre-1998 diesel model.

Including Your Odometer Reading

Realistically, your car’s mileage won’t harm its performance on the road. However, this will affect its market value. The DMV requests that you include your odometer reading during a sale. This should ideally be on your title. If there’s no space, however, add it to your bill of sale.

If you have a high reading, clarify that the car is still in good condition. The buyer may still use it to negotiate a lower price. Even if you refuse, others might still see the vehicle as lower in value due to its mileage. To a point, lowering your asking price might seem unavoidable.

Your Maintenance Records

It’s important to set out the car’s maintenance history. Avoiding this is sure to make a buyer ask questions, or even back out of the sale. Be upfront about your car’s upgrades or repairs. In fact, newer parts could make its value go up.

Used cars are always a gamble. Even with everything in order, your vehicle might have invisible issues that nobody notices before a sale. Showing you’ve carried out regular maintenance could go a long way towards boosting a buyer’s confidence.

Your maintenance records should include:

• Oil change receipts.
• Brake repairs.
• Battery replacements.
• Official inspections.
• Engine repairs.
• Tire rotation services.

These documents are technically optional. But they might be what helps you finally close a sale.

Other Possible Requirements

Not every car-selling situation is the same. Depending on your circumstances, you might have a few more documents to complete. For example, if your title has an error, you need to fill out the state DMV’s REG-101 form.

If you’re selling it to a family member, you should also complete a REG-256 form. This helps the transaction avoid the use tax or even a smog certificate. If it’s a commercial vehicle between 3 and 5 tons, the new owner must complete a REG-4008 document.

For nearly any situation, there might be another form to fill in. Make sure you and the buyer both look into these possibilities. Failing to fill in the right forms to fit your circumstances might even void the wholesale.

Final Thoughts

Selling your used car is rarely a straightforward process. But a comprehensive bill of sale guides you through the transaction and helps it stand up to scrutiny. However, you must still make sure you and the buyer have all the other necessary forms.