How to sell a car privately in California.

California runs the largest private-party vehicle market in the country — about 2.1 million cars change hands between neighbors every year. It is also the most paperwork-heavy state for a private seller. California recommends (but does not mandate) a REG 135 bill of sale, puts the smog certificate burden on the seller, gives you a tight 5-day window to file the Release of Liability, and imposes a 10-day deadline on the buyer to transfer the title. Nothing here is difficult if you do the steps in order. Skip one and you could be paying the buyer's parking tickets a month later.

Before you list

Four things to settle before the first photo hits the internet. Each one prevents a specific headache later.

Title in hand, lien-free

Open your California title — the pink slip — and confirm your name is on it with no lienholder recorded on the front. If the loan is paid but the bank never sent the release, call them today; you cannot legally transfer an open lien. Lost the pink slip? Request a duplicate (REG 227) through your local CA DMV office before you list. It costs $26 and takes 10–14 business days.

Price it with two sources

Pull the private-party value from Kelley Blue Book (it uses California ZIP-code comparables) and cross-check against Edmunds True Market Value. Get an instant offer from Carvana, Vroom, or CarMax as your floor — if a private buyer offers less than an online buyer will pay you today, take the online offer. CarsGuide and AutoTempest show what similar cars are actively listed for in your metro.

Smog certificate — the California special

California is one of the only states that puts the smog certificate on the seller, not the buyer. You must provide a valid smog inspection dated within 90 days of the sale. Exemptions: gasoline vehicles from 1975 or older, diesel vehicles from 1997 or older or over 14,000 lbs GVWR, electric vehicles, and transfers between immediate family members (with REG 256 filed). Everything else needs a current smog check from any STAR-certified station. Cost runs $40 to $90 depending on county. Get it done before you list — if the car fails, you want to know before a buyer is standing in your driveway.

Mechanic check and Carfax

A $50 pre-listing inspection at an independent mechanic is the single best investment you can make. Fix the $30 problems, disclose the $300 ones. Pull a Carfax or AutoCheck and bring the printout to showings — it builds trust and heads off the "has it been in an accident?" question.

Writing the listing and meeting buyers safely

Three listing platforms cover 90% of California private buyers: Craigslist (still the highest-intent traffic), Facebook Marketplace (biggest audience, lots of low-ball offers), and Autotrader Private Seller (best for higher-end cars). List on all three. Photos matter: shoot in daylight, include the VIN, interior, odometer reading, engine bay, any damage, and the title with your personal info redacted.

Scam detection

Two California scams to watch for: the overpayment scam (buyer sends a cashier's check for more than the price and asks you to wire the difference to their "shipper" — the check is fake) and the out-of-state buyer who "has already arranged shipping" and just needs your bank info. Both are fraud. Any buyer who will not meet in person is not a buyer.

Meet in public, daylight

Most California cities operate designated "SafeTrade" or "Internet Purchase Exchange" lots at police stations with 24-hour video. Use them for any high-value test drive. A Walmart or bank parking lot during business hours works as a fallback. Bring a friend. Photograph the buyer's driver's license before any money changes hands.

Test drives

Ride along on every test drive. Never hand keys to a stranger and wave from the curb. If the buyer wants a mechanic's inspection, meet at the shop — their shop, their cost, your presence.

Price negotiation and getting paid safely

California private buyers will negotiate. Leave 5-8% of headroom in your listing price so you have room to come down without losing margin. Don't drop more than that without a specific reason (actual mechanical finding, not "it's all I have").

Cash is acceptable up to about $10,000 — above that the Bank Secrecy Act requires your bank to file a currency transaction report, which is legal but flags the deposit. For higher amounts the gold standard is a cashier's check verified at the issuing branch before you sign over the title. Call the bank, give them the check number, confirm it is real and funded. Fake cashier's checks are the most common California private-sale fraud.

Wire transfer is fine for higher values if you wait for the money to actually land in your account (same-day wires do exist but confirm with your bank, not the buyer). Never accept a personal check. They bounce. Zelle and Venmo have daily limits and reversal windows that make them a bad fit for car-sized transactions.

The paperwork

REG 135 bill of sale

REG 135is California's official Vehicle/Vessel Transfer and Reassignment form. It is strongly recommended even though California does not strictly mandate it for a private sale — and here is why it matters: the REG 135 captures the declared sale price (used for the buyer's use tax calculation), gives you a signed record of the transaction, and is routinely requested by DMV staff during registration. Without it, disputes over the sale price or the condition of the car come down to he-said she-said.

A completed REG 135 includes the VIN, year, make, license plate, seller and buyer printed names and addresses, both signatures, date of sale, sale price (or declared gift value), odometer reading, and odometer disclosure code. Use our California Bill of Sale wizard to generate a clean typed, signed, DMV-ready version in about four minutes — no printing, no handwriting, emailed to both parties.

The California title (the pink slip)

The title is where the real ownership transfer happens. On the back of the pink slip, in the Transfer of Title and Registration block, the seller signs as releasor and the buyer signs as transferee. Both parties also complete the odometer block printed on the title itself — actual mileage, not-actual mileage, exceeds mechanical limits, or exempt (only for vehicles 20+ model years old or over 16,000 lbs GVWR).

Do not alter, white-out, erase, or cut the title. California DMV rejects damaged titles and you will have to request a duplicate on REG 227 — $26 and 10–14 business days of delay. Sign cleanly in pen, print legibly, and if you make a mistake, order a duplicate rather than trying to correct it.

REG 138 Notice of Release of Liability

This is the form that actually gets your name off the car in DMV's records. REG 138 is the Notice of Transfer and Release of Liability, and California law requires the seller to file it within 5 calendar days of sale. The DMV offers a free online filing at dmv.ca.gov. The online process takes 3 minutes and you get an emailed confirmation receipt — keep it. That receipt is your proof if a parking ticket shows up in your name two months later.

Why REG 135 matters even though California doesn't mandate it

California DMV technically accepts the title transfer block as evidence of sale. But every experienced California seller still writes a REG 135 because it documents the as-is condition in writing, captures the sale price on a form the buyer signs (heading off "I only paid $500 for it" disputes during use-tax audits), and gives you a photocopy to file away. The one-page REG 135 is the difference between a clean record and a six-month small-claims headache.

At the handoff

When buyer and seller are standing in the same parking lot with a stack of paper and a stack of cash, the handoff goes in this exact order:

• Both parties sign the REG 135 in ink (or e-sign through our wizard).
• Seller signs the pink slip as releasor; buyer signs as transferee; both complete the odometer block.
• Buyer hands over payment; seller verifies it (count the cash, call the issuing bank on a cashier's check, confirm the wire has hit the account).
• Seller gives the buyer: signed pink slip, copy of the REG 135, smog certificate, both sets of keys, and any owner's manual or service records.
• Both parties photograph the signed documents on their phones before they walk away.

California plates stay with the vehicle — you do not remove them — unless they are personalized plates you want to keep (use REG 17 to transfer them to another car you own).

After the sale — the 5-day clock

California law requires the seller to file REG 138 (Notice of Transfer and Release of Liability) within 5 calendar days of sale. Miss this deadline and you remain the registered owner on DMV's records until the buyer registers the car — which means any parking tickets, red-light cameras, bridge tolls, and civil infractions they accumulate get mailed to you.

File it online at dmv.ca.gov the same day you hand over the keys. It is free, takes 3 minutes, and asks for the VIN, plate, date of sale, buyer's name and address, and the sale price. You will get an emailed confirmation — save it in a folder with a copy of the signed REG 135 and title. That packet is your proof of sale forever.

Once REG 138 clears, then call your insurer. Cancel the policy on the sold car, report the sale date, and ask for a pro-rated refund of your remaining premium. Do not cancel before filing — if the buyer drives uninsured before they register, and you are still the registered owner on DMV records, you can be named in a civil suit.

DMV notification is fully handled by REG 138. There is no separate form to mail, no visit to the DMV office required, and no fee. The buyer handles the title transfer separately when they register — you have nothing more to do after REG 138 and cancelling insurance.

Taxes — who pays what

California does not charge a traditional sales tax on private-party vehicle sales. Instead, the buyer owes use taxat their local rate (7.25%–10.75% depending on county and city) when they register the car at DMV. Use tax is calculated on the reported sale price or DMV's fair market valuation, whichever is higher — California audits suspiciously low prices. This is not your problem as the seller except that it is a reason to report the real price, not a "helpful" lower number.

For the seller, private-party vehicle sale proceeds are not taxable income in California. It is a casual sale of personal property at a loss (or occasionally a small gain on a collector car). Unless you are a licensed dealer, there is no state income-tax event on the transaction and nothing to report on your return.

What if something goes wrong

Even a clean sale can generate friction after the keys are gone. Three scenarios come up repeatedly for California sellers, and all three have practical DIY answers.

The buyer's payment bounces.If the cashier's check was fraudulent, file a report with your local police and with the FBI's IC3 (ic3.gov). Your signed REG 135 documenting the transaction is evidence. Your bank will reverse the deposit; recovering the car is a civil matter. This is why you verify cashier's checks at the issuing branch before handing over the title.

The buyer disputes the smog certificate. If the certificate is within 90 days and on file with DMV electronically, you have met your legal obligation. Send the buyer the certificate number from the smog station receipt. If they refuse to register because they claim you sold a non-passing car, point them to the Bureau of Automotive Repair at bar.ca.gov — BAR handles smog disputes.

DMV rejects the title transfer.Usually means the title was damaged (white-out, cut, altered) or the lien was never released. Both problems are the buyer's to resolve through DMV with a REG 227 duplicate request or a lien-release letter from your bank. Send your REG 138 confirmation so the buyer can show DMV you filed on time; their registration delay does not extend your liability window.

For anything more serious — alleged undisclosed defects, buyer remorse lawsuits — your signed REG 135 with an "AS IS" clause is your best protection. California small-claims court handles disputes up to $10,000 and does not require an attorney.

Skip the paperwork

If you would rather spend four minutes in a wizard than copy-paste into a blank PDF while a buyer stares at you across a parking-lot hood: our California Bill of Sale wizard fills in a DMV-compliant REG 135 plus a federal odometer disclosure addendum, auto-fills vehicle details from the VIN via the NHTSA API, captures both signatures on your phone, and emails a clean PDF to seller and buyer at the same time. $9.99 one-time. No account. No subscription.

That covers the REG 135 and odometer addendum. You still file REG 138 yourself at dmv.ca.gov within 5 days — that one has to come from the seller. Questions about the wizard are on the FAQ; data-handling is on the privacy page. Otherwise — good luck, and don't skip the 5-day REG 138 filing.