When you’re buying a vehicle in California there are a few things to keep in mind in terms of how much it is going to cost you. The #1 determining factor in pricing is sales price and sales tax. The more you paid for this vehicle the more you will pay in sales tax & the VLF (vehicle licensing fee). The rate in tax that you’ll pay is relative to what city/county you’re in. Some cities, in addition to county taxes, have to pay a city tax as well. This is why when you’re pricing out how much it costs to change the vehicle ownership of your car it is imperative that you give the most accurate information – correct city and zip code – as this information will greatly impact price. I’ll give you an example, Riverside city has roughly 8 different zip codes – the zip code 92509 will not charge a city tax, but the zip code 92501 will.
Aside from the taxes, you pay the upcoming registration fees, or any overdue registration fees will impact the price to transfer the vehicle into your name. Calling the Department of Motor Vehicles with the vehicle registration information prior to committing to the purchase of the vehicle is a good step to make sure that you know what you’re dealing with in terms of cost. Sometimes finding out that a vehicle owes back fees allows you to negotiate on the purchase price of the vehicle. The following fees are also collected by the DMV:
- Registration
- VLF (vehicle license fee) – this is based on the VALUE of your vehicle
- CVRA fees (this applies to large commercial vehicles
- Use tax (sales tax)
- CHP fees
- New license plates
The DMV says this to the new owner: “Buyer beware” – do your due diligence. In most cases, the DMV will not waive fees unless you can prove that you were misled intentionally by the previous owner.