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      11-15-2012, 05:13 PM   #11
nbkkvv5
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Drives: 09 E90 335i
Join Date: Nov 2009
Location: SF Bay Area

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Quote:
Originally Posted by e90_will View Post
Hey I know the process of selling a car, but what about trading?
Im interested in someone elses car and am still debating if I should trade or not, but how is the process done? Do I have to just sell my car to him, and he sells his to me? Thanks for the input in advance.
In CA, if you are not related to the other vehicle owner, then the transaction is considered a regular transfer and you will have to pay sales tax on the market value of the car your trading for. In addition, depending on the age of your car, you may have to get a smog certificate.

This is from the DMV site:
There are three primary differences between regular transfers and family member transfers:

1. A regular transfer requires smog certification in most cases before the vehicle can be registered in the new owner's name. A family member transfer does not require smog certification (See Smog Certification section) if the vehicle is currently registered and the biennial smog inspection is not due.

2. On a regular transfer, use tax based on the purchase price of the vehicle is due at the time of transfer. A family transfer is exempt from use tax with the exception of a transfer between siblings who are not minors. Transfers between siblings are exempt from smog certification regardless of age, unless a biennial smog is required.


3. A regular transfer requires the department to reestablish the vehicle value (reclassify) to determine the appropriate Vehicle License Fee due. The license fee is based on the purchase price or current market value of the vehicle. A transfer between family members is exempt from reclassification of the vehicle value.

To establish eligibility for the use tax or reclassification exemption, be sure to let the department know that this is a family member transfer.

A "family transfer" is when ownership is transferred to or from a:
• spouse
• parent
• child
• grandparent
• grandchild
• siblings
• domestic partner
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