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10.13 Non Resident Vehicle Transfers
When a vehicle titled in another state is brought to California for registration, it undergoes a non-resident vehicle transfer process. This involves presenting the out-of-state title to DMV, completing a California title application, paying California registration fees and use tax (if sales tax wasn’t paid or was paid at a lower rate than California’s), and meeting California emissions (smog) requirements.
As a dealer, you may acquire vehicles from out of state — at out-of-state auctions, from customers who are relocating to California, or through other channels. You need to process the California title promptly. DMV requires the out-of-state title, a completed REG 343 (Application for Title or Registration), a smog certificate (if applicable), and payment of all fees.
One common issue with out-of-state vehicles is emissions compliance. Many vehicles that meet emissions standards in other states do not meet California’s more stringent emissions requirements. Before you invest in an out-of-state vehicle for resale in California, verify that the vehicle is California-emissions compliant or can be brought into compliance at a reasonable cost. Selling a vehicle that can’t pass a California smog check is a lose-lose situation.