I'm in the process of trading my car with another private party car. I'm in California and was wondering what the process is. He is also in the area.

1. I just smogged my car roughly 2 months ago. Do I have to smog again?
2. How would the process be since its a trade, will there be tax?
3. What is the process called? Would it be 2 sales?


Thanks for the help in advance.

 

Hes talking about trading straight up with a private party I assume... not a "trade in".

Can't you just sell your car to him for $1 and he does the same? That way you get out of sales tax too.

 

oh no...not the CL...
what you trading for?

 

Answers below based on what I know from selling cars in NY, NC and FL...

1) Nope. I have sold cars with current inspections and sold cars with expired inspections. The buyer was responsible for renewing in both cases.

2) You should write up a bill of sale... list a value for your car and a value for
his car. You should also write that in lieu of cash the cars will be the compensation and you are trading the cars for an equal transaction.

3) See #2.

 

Why not go straight to the horse for accurate local information?
Don't forget to fill out the form letting the state know that you are no longer liable.

http://dmv.ca.gov/vr/vr.htm

 

i'm wondering whats the lowest value I can list since its a trade.

 

^ Do you pay property tax on your vehicles? If so, I'd go with the Private Party value b/c that's likely what they will use.

If not you can probably list trade-in or a little lower and be safe...

 

thanks for the help, forgot that u can look up trade-in values.

hopefully i can get my s this weekend.

 

I can't wait, boy!!!!! Hopefully I can pick up my Z soon so we can go for PS.

 

srsly..

 

Here's are the steps that I rounded up that I must do:
1. Get a Smog and certificate
2. Complete a Bill of Sale
3. Complete the Certification of Title (aka pink slip)
4. Fill out Notice of Transfer and Release of Liability
5. Go to DMV with all documents and complete transfer + pay fees
6. Change insurance information.
7. Enjoy car.


missing anything? only confusion I still have is that he still owes money to the credit union for his car. And I completely own my car. Thus his car is owned not by the credit union.

 

hope so.

 

Verify info about the smog check. I believe if you've had the car smogged within the last 90 days, it counts as still being smogged. It's worth looking into, it'll save you $40-60 if you don't have to do it again. Remember, in California, it is the Seller's responsibility to smog the car before selling it. You cannot pass it off to the Buyer, even if they agree to it.

 

i smogged it a few months ago but it is pretty close to the 90 days but thanks for the heads up.

 

You may want to check the legality of the $1 sale price. I think the someone told me that the sell price had to be something in line with the value of the car. The DMV wants their cash too. The taxes will be accessed based on the sell price. The DMV will ask to see the bill of sale when you go to register the car and get plates.

As for getting it smogged again, when I purchased my CL from a private party, I did not have to get it inspected again until the sticker expired. I assume it should be the same.

 

^ You're gonna want to list the cars for near blue book value... otherwise you're just sending up a flag.

As for him still owing money on the car you should NOT be making any trades until he has the title free and clear... otherwise you're trading your car for a car that is owned by a bank.

 

How is he able to trade you the car when technically it isn't even his yet? The bank will not release the pink slip to you until they get their money. If he stops paying the loan they'll probably repo it. You should talk to the bank before you do anything, otherwise you may end up on foot.

 

don't do the deal, as you will become liable for the remainder of the loan IF the bank lets it go. I do not think they will. OR....

The two of you agree on a sales price where you are paying off the rest of the loan. I don't think you want to do this.

 

Do not do the deal until he has title in hand...

 

this is what is supposed to happen.
1. sign 2 forms, 3 copies. one for the bank, one for each of us
2. go to the bank get all the paperwork done
3. he will have 2 loans for about 5 minutes, then in the end the NEWER loan will be on my old car.
4. drive the cars and go to dmv.

 

^ I would make #3 as #1. With the way banks are lending money these days (in other words they aren't), it's not going to be as easy as you think.

Get the loans done first, have him pay off the balance due on his car and get the title in hand... then move forward with the rest.

 

I don't think the guy can pay off his car immeditely is how it sounds.

Lippstuh is trying to transfer owner ship of the cars to where the guy has to pay the remainder of his loan while owning lippstuhs...

Interesting situation none the less. This should be a good knowledge base one everything gets figured out.

 

I understand what they're trying to accomplish, however, without a title the bank owns the other guy's car. So if the plan is to have this other guy get two loans (even if it's for 5 minutes as the OP says) in order to clear the other car, I would make that happen first before moving forward. Who's to say the bank is going to give one guy two car loans simultaneously?

I wouldn't sign or trade a damn thing until that part is determined for sure.