California used car dealer paperwork and sales tax guide

This is a plain-language summary of how a used-car deal works out in California: the sales tax, what happens to a trade-in, how dealer fees are treated, and the paperwork a dealer prints. DMS Apex uses these same rules to work out each California deal.

California tax and fees at a glance

How California sales tax is worked out

California: 7.25% state tax plus the district tax of the buyer's registration address (type the combined district rate) on the price, the document processing charge and other charges. A trade-in does NOT reduce California sales tax, and an optional warranty is not taxed. The document processing charge is capped at $70 ($85 for a DMV Private Industry Partner) and must be disclosed as not a government fee. The Buyer's Order prints the 3-day right to cancel statement (used vehicles $50,000 or less) and, on an as-is sale, the as-is statement. Title fee starts at $28. The 3-day statement prints only on a used vehicle of $50,000 or less. The full disclosure the law requires (400-mile limit, restocking fee) is not printed: give it to the buyer separately.

Required wording beside the dealer fee

California requires this wording where the dealer fee appears. The Buyer's Order prints it.

THIS CHARGE IS NOT A GOVERNMENTAL FEE.

The as-is notice

California sets the wording for an as-is sale. DMS Apex prints it on the Buyer's Order when the sale is as is.

THIS VEHICLE IS SOLD "AS IS" OR "WITH ALL FAULTS". THE ENTIRE RISK AS TO THE QUALITY AND PERFORMANCE OF THE VEHICLE IS WITH THE BUYER. SHOULD THE VEHICLE PROVE DEFECTIVE, THE BUYER, AND NOT THE MANUFACTURER, DISTRIBUTOR OR RETAILER, ASSUMES THE ENTIRE COST OF ALL NECESSARY SERVICING OR REPAIR.

Other required notices

California requires the following wording on the Buyer's Order. DMS Apex prints it.

• CALIFORNIA DOES NOT HAVE A COOLING-OFF PERIOD FOR NEW VEHICLES. HOWEVER, IF YOU PURCHASED OR LEASED A USED VEHICLE FOR $50,000 OR LESS, YOU HAVE 3 DAYS TO CANCEL THIS CONTRACT FOR ANY REASON. ADDITIONAL RESTRICTIONS MAY APPLY, INCLUDING A RESTOCKING FEE. You have up to 3 days to return the vehicle to the dealer and cancel this contract and obtain a refund. Please review the disclosure, which the dealer is required by law to provide, for the details about this right and how to exercise it.

California paperwork a dealer prints

DMS Apex prints these documents for a California deal, all in black and white:

• Buyer's Order with the 3-day cancel statement and as-is notice
• Buyers Guide

Step-by-step form guides

• REG 343 Application for Title or Registration: how to fill it out

This is general information, not legal or tax advice. California rules change: confirm current requirements with the California Department of Motor Vehicles or the California Department of Tax and Fee Administration.