How to Sell a Car in California

California is America’s largest automotive market and it is also the state that is the most serious about clean air initiatives and emissions. Unlike many other states, which have no smog checks, California has this requirement. The state also requires that qualifying cars being sold must pass at the transfer of ownership. Not every car needs to be inspected.

We will dive into that and other requirements in this overview of how to sell your car in California. In this article we will present a step-by-step guide for how to sell your car in California. We will cover the following helpful list of to-dos.

• Step 1: The Decision to Sell
• Step 2: Determine the Worth of Your Car and Set a Price
• Step 3: Smog Checks and Emissions
• Step 4: Gathering Paperwork and Documentation
• Step 5: Preparing Your Vehicle for Sale
• Step 6: Vehicle Inspection
• Step 7: Consider Donation
• Step 8: Listing a Your Car
• Step 9: Getting Payment
• Step 10: Transferring Ownership and Removing Insurance

Step 1: The Decision to Sell

Before we go too far, let’s step back and ask the question, “Is now a good time to sell my car in California?” With record shortages of vehicles, and the most desirable models now almost universally sold out, what is your plan for transportation after you sell your vehicle? Walk? B.A.R.T.? L.A Metro? Rideshare? All decent options, but if your plan was to head on over to your local dealer and drive home in a new car, think again. Call the dealers nearby who sell the model you plan to purchase and ask about the lead time and markup over MSRP that you can expect. You should be seated during the call. It will be a rough one.

Buying a newer used car? Used car prices are at all-time highs. You can expect to pay more for a used model a couple of years old than that same model might cost new at a dealer. If there are any at the dealer.

The reason we bring this up is that we are Car Talk, the folks who like to talk about used cars and how to keep them running and running well. There has never been a worse time in America to be selling a used car with the plan to move up to a newer model. If your ride can be spruced up and brought back to good condition, give it some serious thought. The used car market seems to be loosening up a bit and new cars can’t stay out of stock forever.

Read more on the Best Time to Buy a Car here.

Step 2: Determine the Worth of Your Car and Set a Price

It is important to do the research into what the true value of your car is before you begin the process of selling. As mentioned above, used car values are at an all-time high right now. So it is important to make certain you are setting a price that is current with today's trends. Knowing the true worth of your car is helpful in setting expectations in the selling process.

Determining a selling price for a used car in California has never been easier. Sites like KBB and Edmunds offer used car price estimation tools. Note that when you use such a tool, it asks detailed questions about the condition and the trim. Be as honest as possible to get the best estimate results. If you sell to a private party, you will likely get a higher price than if you sell to a dealer or trade the car in.

Learn more on How to Sell a Car here.

Step 3: Smog Checks and Emissions

California has a smog test that certain vehicles need to pass in order to be sold. You may be shocked to find out that the most polluting vehicles on the road don’t have to pass a California smog test. These include:

• Any vehicle model year 1975 or older. Who needs catalytic converters?
• Any dirty, diesel-powered vehicle model year 1997 and older. Heck, you can see and taste the smog, why bother pretending to test it?
• Any dirty, diesel-powered vehicle with a Gross Vehicle Weight of more than 14,000 pounds. Let’s not pretend these are passenger vehicles.

Some cars are trusted by California to be clean enough that they skip the test. These include:

• Any vehicle powered by natural gas and which weighs more than 14,000 pounds. There are maybe two in the entire state that are in private hands.
• An electric vehicle. What’s to check?
• Any gasoline-powered vehicle less than eight model years old.

So, what passenger vehicles actually DO need a smog test? Any that are older than eight years old and not older than a 1975 model year vehicle. This includes hybrid models as well.

If your car needs to be smog tested before sale, check the DMV’s website for more details on how that gets done.

Step 4: Gathering Paperwork and Documentation

Selling a car anywhere involves paperwork. It helps ensure we all know who really owns a vehicle, who is responsible for it, and it helps employ a vast army of paper pushers. There are some paperwork tasks specific to California we will overview first, and then a set that we think any owner may wish to tackle.

The California Paperwork

• Do you have a loan outstanding on this vehicle? If so, start with your lender. You need them to release the lien on your vehicle before you can sell it.
• Have you lost the title? If so, you need a Reg 227 form completed and it will add a bit of time to the process as the DMV does some background checking on the vehicle and then sends you a new title. Oh, expect a fee. Let us tell you, having a title when you sell a car is always a big plus in any state. In California, lacking a title multiplies your necessary paperwork.
• If you don’t have the title when you sell, you will need to fill out a Reg 262 form. In ink. Not online.
• If you have the title, you can complete the Title Transfer Online. Here is where you do that on the DMV site.
• Think you’re done? Nope. Now you do a NRL, Notice of Transfer of Title and Release of Liability. Here is where you do that on the California DMV site.

If you are selling a car for a deceased person (our condolences) or as part of a bankruptcy or divorce proceeding, check in with the California DMV. They have the special instructions you need.

The General Paperwork

• Do you own an Extended Warranty? If so, it’s a definite plus when selling a used car. Almost every extended warranty allows for it to be transferred to a new buyer. There is often one short form to fill out, a filing fee of around $100, and you are done. If you are selling a used car that is presently covered by such a warranty, find out if it can be transferred, and use that info to highlight your car’s special feature in your advertisement and sales pitch.
• Maintenance and Repair Records and Recall Fixes. If you kept all of the paperwork related to routine maintenance, repairs, and recalls that have been completed, pull it all together and purge it (using scissors) of any personal info that may accidentally be on it. This information is important to new buyers who may want to see that the car was well-maintained, and also if they ever wish to obtain an extended warranty.
• Subscriptions, Subscriptions, Subscriptions. Vehicle-related subscriptions can cost more than a monthly car payment. If you have a telematics system like GM’s OnStar, a satellite radio subscription, in-vehicle wifi, or any other vehicle-related subscription, now is the time to cancel them. The biggest one is your extended warranty, if you have one that you didn’t transfer to the new owner.

Step 5: Preparing Your Vehicle for Sale

It is important to get the car cleaned and detailed on the inside for a possible sale. This seems like common sense, but it is often overlooked. When prepping your vehicle for sale, you are more likely to get a higher price for the car if it has been properly cleaned and maintained. Collect all your maintenance records and make sure that any outstanding issues have been addressed.

Step 6: Vehicle Inspection

Our interpretation of California’s process for owner transfer of a used vehicle is that the vehicle being sold must “be able to” pass the state’s mandated safety requirements. To our way of thinking, this means it should be inspected. Why learn of a failure after the paperwork is done? From a moral perspective, it seems logical that anyone selling a used car would want to have it be safe for the next driver.

Step 7: Consider Donation

Is the car a basket case and you simply don’t want to deal with making it safe to drive? Why not donate the vehicle? The folks who accept the car will either make it safe again, or they will part it out and use the money for a good cause. Car Talk can help if you opt to donate. You will help out a local nonprofit and you may also earn an income tax incentive. California accidentally left Car Talk off of its list of charities, but you can find our Car Talk Vehicle Donation Program right here.

Step 9: Listing a Your Car and Paying Fees

There has never been a better time to sell your used vehicle. If it is a relatively low-value vehicle ($2K or less in today’s shadow of a U.S. dollar) consider word of mouth, a printed flier at your workplace in the lunchroom, and maybe at your local fitness center or senior center depending on how you swing. Craigslist is also a great option. Read up on ways to keep you safe during the sales process here at Car Talk.

If your car is a specialty vehicle, market it online in clubs where members follow it as fans. Hemmings is the leader in classics. There are endless online sales sites that can help you market and sell a higher-value car.

Fees

Most of the fees associated with a vehicle transfer in California are the buyer’s responsibility. There are forty-six possible fees a new owner will pay in California, by our count. However, if you already have a clean title, there is just a small fee for the processing of the paperwork on the seller’s side. It’s $15. Of course, that does not include the smog and safety tests you will likely need to do.

Step 10: Getting Payment and Transferring Ownership

Before you execute any sale in any state, be sure you get paid. If you sell private party, photograph the person, their car, and their valid driver’s license when you meet. Accept only cash or a cashier’s check and do so at your local bank branch so you can be assured the check is real. If you use electronic payments, do so only if you feel confident that you know the terms of service.

Once ownership has been transferred, make certain to remove your insurance coverage or any applicable subscriptions or extended warranties.

Read more on Selling a Car here.