Classic Car Dealers in California

In California the DMV issues the title, and it also collects the use tax when you buy from a private seller. The part that catches classic buyers out is smog: the cut-off is the 1975 model year, and for anything newer the seller has to provide a passing certificate.

Titling the car

The buyer is required to send the signed title and the $15 transfer fee to the DMV within 10 days of the sale, and a late penalty applies if the transfer fee is not paid within 30 days. The seller must report the sale to the DMV within five days. Buying from a private seller, the seller signs line 1 of the title, and if the seller is not the person named on it you need a bill of sale signed by both of them. An odometer record is only required for vehicles less than 10 model years old, so a classic does not need one. Buying from a licensed dealer, the dealer handles the DMV paperwork, has 30 days to submit it on a used car, and pays any penalty itself.

A car from another state needs a Verification of Vehicle (REG 31), done by a DMV employee, a peace officer or a California-licensed verifier, along with the last out-of-state title, the out-of-state registration and a California smog certificate where one applies. Registration fees on a vehicle that was last registered elsewhere are due within 20 days of the date they become due, even if the title or smog paperwork is not finished. If the other state issued no title, DMV registers the car as non-transferable until a title is obtained, and may ask for a surety bond if that state cannot issue one.

If a classic comes without a title, the DMV can accept a Motor Vehicle Ownership Surety Bond (REG 5057), set at the car's fair market value, in place of the missing proof of ownership. A lost California title is replaced on form REG 227. A bill of sale alone is not enough when the seller is not the titled owner.

Historical and Year of Manufacture plates

• Historical Vehicle plates are for cars made after 1922, at least 25 years old and of historic interest, meaning kept by a collector or hobbyist principally for exhibition and club activities. They cost $25 once with no renewal fee, and the annual vehicle license fee is fixed at $2. The use rule is that the car is driven primarily for historical exhibition and similar purposes.
• Year of Manufacture (YOM) plates are original California plates dated to the car's model year, allowed on 1980 and older vehicles. The owner supplies the plates, the DMV authenticates them at a field office, and the cost is $45 up front and $10 extra at each renewal. The DMV manual says YOM cars have full operating privileges and are not limited to club events.
• Plates and sales: historical plates are permanently assigned to the car and stay with it when it is sold. YOM plates can stay too if the seller releases them on form REG 352 and the buyer files a new one.

Smog

Gasoline cars of the 1975 model year and older, and diesels of 1997 and older, need no smog check. Gasoline cars from 1976 on and diesels from 1998 on need one when ownership changes, and the seller must give the buyer a valid certificate, which lasts 90 days. A dealer is responsible for having each car it offers for sale inspected, and its certificate is good for two years or until the sale. Transfers between close family members are excepted. A collector car that is insured as one and is at least 35 model years old, or has historical plates, can take an abbreviated inspection at a state Referee instead of a regular station. A car with an engine change must pass a Referee inspection first.

The rule is changing for some classics. Under SB 1392 (Jay Leno's Law), signed on September 16, 2026, qualifying collector cars made before the 1981 model year become exempt from smog on January 1, 2028, and the cut-off rises one model year each year to before 1986 in 2033. The Bureau of Automotive Repair still has to write the rules, and until 2028 the 1975 cut-off stands.

Sales and use tax

• The statewide base rate is 7.25% and local district taxes are added. In the state's October 2026 table the combined rate runs from 7.25% to 11.75%, depending on the city, and it is set by the address where the car is registered.
• A dealer collects sales tax. A private buyer pays use tax at the same rate when registering with the DMV. Tax applies to the total price, including the value of anything traded in, and gifts and sales between close family members are exempt.
• Buy outside California and bring the car in, and use tax applies when the first use is in California. A car brought in within 12 months is presumed bought for use here, and tax paid to another state is credited against the California tax.
• Out-of-state buyers at a California dealer owe sales tax unless the car is delivered outside California. From a private seller, a nonresident owes use tax only if the car is registered in California, and a DMV one-trip permit can cover the drive out of state.

Dealers, private sellers and insurance

Acting as a vehicle dealer in California requires a DMV license, and the DMV has an online status system to check one. A dealer can sell a car "as is" only if a conspicuous written notice is attached to it before the sale. Since October 1, 2026, a dealer selling a used car at $50,000 or less must give the buyer three days to cancel for any reason, as long as the car has been driven no more than 400 miles; the dealer may keep a restocking fee of 1.5% of the price, between $200 and $600, plus a charge for mileage over 250. That right does not apply to private sales or to cars above $50,000. Dealers must also pull a National Motor Vehicle Title Information System report and post a disclosure if it shows a salvage or branded title. A revived salvage car needs a DMV or CHP verification and a safety systems inspection before it can be registered again, and a non-repairable certificate means the car can never be. Registration requires liability insurance of at least $30,000 per person, $60,000 per accident and $15,000 for property damage.

Sources: California DMV (registration, title, plate and fee pages, Vehicle Industry Registration Procedures Manual, forms REG 352 and REG 5057), Bureau of Automotive Repair (Smog Check, Collector Cars, Engine Changes), California Department of Tax and Fee Administration (vehicle use tax guide, Publications 34 and 52, rate tables), the California Vehicle Code, Health and Safety Code, Civil Code and Revenue and Taxation Code, and the text of SB 766 and SB 1392. Rules and fees change; confirm with the DMV before you buy.