Have you recently bought a new car and aren’t sure what to do with the old one? Knowing what to do with an old car can be confusing. Most of the time, we want to get rid of it immediately, but there are certain legalities and procedures that you need to be aware of before dumping it. We’ll help you understand the various options for selling, donating, recycling or repurposing an old car in California.
Understanding Your Options
There are many options available to you when disposing of your old car in California, and you must be aware of all of them so that you can make the right decision for you.
Selling Your Old Car Privately
When selling a used car privately in California, you need to take several steps. Firstly, you should ensure the car is clean and take care of any maintenance issues that might affect the sale. It is also advisable to get an inspection to establish trust with buyers.
You will also need to take care of the following documents:
- Complete and submit Department of Motor Vehicles (DMV) transfer forms
- Get a smog certification and odometer reading
- Complete the California Certificate of Title
- Collect all maintenance records and any valid warranties
In addition, you will need to complete a Notice of Transfer and Release of Liability (NRL) for the state of California, which can be completed online. This informs the DMV that the car has changed ownership and releases you from liability for any issues related to the car after the sale. To complete the form you will need the car’s license plate number, Vehicle Identification Number (VIN) and the new owner’s name and address. You must file the transfer within five days of the date of purchase.
When transferring the title to the new owner, you will need to disclose the odometer reading. This must be the reading on the day of sale, as per the requirements of the California DMV.
The California DMV also requires you to get a smog certificate from an authorized test station. These certificates are valid for 90 days and apply to most cars, except the following:
- Cars less than eight years old
- Electric cars
- Cars powered by natural gas
- Cars produced before 1975
- Diesel cars over 14,000 pounds
- Diesel cars made before 1998
In some cases, you will also need to complete extra forms:
- Cars with missing title: Form REG-227
- Where there is an error on your car title: Form REG-101
- Cars with a missing license plate or sticker: Form REG-156
- Family member transfers: Form REG 256
- Commercial cars: Form REG-4008
- Cars with lienholders: Form REG-166
Once the documentation is taken care of you can advertise the car for sale and find a buyer. This can be through classified ads, online car forums or social media marketplaces.
Trading It In at a Dealership
Before trading your car in, it’s recommended that you get an estimate of the trade-in value. You can do this using various calculators online. You can then take your car to a dealership and ask them if they are interested in taking your car and what they’re willing to offer you.
If you decide to accept the offer, you’ll need to bring your car to the dealership, as well as the car’s title and registration, all keys, and a form of personal ID.
It’s important to note that when you trade in your car you’ll be getting the wholesale price, so it will likely give you less money than if you were to sell it privately.
Selling to a Junkyard or Scrap Yard
Junkyards generally pay by weight and type of metal. To get an idea of what price you should be getting, you can use online scrap value calculators. It’s a good idea to get quotes from various scrap yards to get the best price.
Like selling privately, you will need several documents. Namely, the car’s title and registration and a smog certificate. Once a sale has been agreed, you will need to sign over the title to the junkyard. You will also need to complete an NRL.
Environmentally Friendly Disposal Methods
Recycling an Old Car
There are a number of trained and licensed recycling yards in California that break down and recover valuable parts and materials from junk cars that have reached the end of their life. When brought to Californian recycling centers, cars are separated into different parts that can be reused, repaired, or disposed of responsibly.
Modern cars are now between 85% and 90% recyclable when taken to the right service. In return for recycling your used car, you may be able to earn a $500 tax deduction.
Services like SHiFT Vehicle Retirement Initiative are part of the California car recycling program and will help you to recycle your car and will also provide you with a certificate of carbon reduction and tax receipt.
Donating Your Car to Charity
Donating a car to charity is another way of disposing of your used car. This not only helps important causes and increases environmental sustainability, but can also provide you with tax deductions.
Once you have chosen a charity, you will need to fill out a car donation form with information like the year, make model, mileage, condition and VIN. You will also need to transfer the Title and registration.
You will then receive a tax receipt within 30 days of the sale of your car donation. The tax-deductible amount is equal to the sale price of the car. If it sold for less than $500, you can claim the fair market value of the car up to $499. If it sells for more than $500, an IRS Form 1098-C, Contributions of Motor, Vehicles, Boats, and Airplanes, will be mailed to you so you can claim the full amount when itemizing taxes.
Organizations like Car Donation Wizard can assist you with donating your car to charity in California.
Using California's Vehicle Retirement Program
You can also retire your car through California’s Voluntary Accelerated Vehicle Retirement (VAVR) program. This provides owners with monetary incentives when they voluntarily retire more polluting or older cars. You can do this through the Bureau of Automotive Repairs. The car should be in drivable condition. Depending on the condition of the car, you may receive up to $2,000 to retire your car.
Maximizing the Value of Your Old Car
Repairs and Upgrades Before Selling
While it isn’t a legal requirement, it is worth addressing any issues with your used car before selling it. After all, nobody wants to buy a car that they need to repair.
Be sure to address any noticeable issues like malfunctioning parts, dents and scratches before selling your used car. It’s worth spending a few hundred dollars to get your car detailed so that the seats and carpets are in their best condition. This will help you get the best price for it.
How to Get the Best Offer for Your Used Car
If you follow the steps below, you’ll be sure to get the best offer for your used car:
- Cleaning and detailing: You will get a better offer and more interest if your car looks good.
- Repairs: Take care of any minor issues, this will make your car more desirable.
- Records: Make sure you have your maintenance records to hand, this will illustrate to potential buyers that you have taken good care of your car and can help raise the price.
- Research: Look into how others are pricing your vehicle so you can understand how much you should ask for it.
- Options: Gather options for private sales, trade-ins, junkyards and recycling schemes to know you are getting the best offer for your car.
- Timing: Think about when you’re selling your car. Certain times of the year are better for making sales. You should also be aware of economic and market trends.
- Negotiate: Start high so that you don’t lower your price down too low. It’s good to be firm but flexible.
Legal Considerations When Disposing of a Car in California
Title Transfer and DMV Requirements
If you are trading in your car with a dealership, they will usually handle the transfer, but if you are selling privately, you will need to do this yourself. You can transfer titles in California online. This must happen within 10 days of a change to a vehicle’s registered owner. To do this, you will need:
- The California Certificate of Title
- The signature of both the buyer and seller
- The transfer fee
You can file the transfer of title online, and will also need to have the following information to hand:
- Your driver’s license number
- The car’s license plate number
- VIN
- The legal owner’s name and address
- The car’s make, model and year
- Purchase date and price
A new title is issued by the DMV within 60 calendar days. You should also disclose the odometer reading and complete an NRL within 5 days or releasing ownership.
Smog Check
You are required to give the new owner a valid smog certification when you sell the car. You can find a DMV-authorized smog check station near you online.
This is not required if your used car is less than four years old, but the new owner of the car will need to pay a smog transfer fee of $8.
Avoiding Scams When Selling a Used Car
Unfortunately, there are risks with selling a used car, so it’s important to be aware of potential scams while selling. Following the steps below can help you avoid being scammed:
- Meet in public: It is safer to meet in a parking lot in daylight than at home as it reduces the risk of theft and there are likely to be others around if anything untoward happens.
- Ask for details: If the buyer doesn’t want to give you their full name and contact details, it suggests that something’s not right.
- Avoid overpayment: If something sounds too good to be true, it often is. If a buyer wants to pay more, the payment could be fraudulent or stolen.
- Verify payment: Make sure the funds have cleared before handing over the keys and documents.
- Don’t rush: Do not rush the process. If someone is pressuring you, it may be because something is off.
- Handle the paperwork: You should do this yourself to ensure documents are legitimate and not fake. It’s also important to create a detailed bill of sale that includes VIN, odometer reading, date of sale and price, and buyer and seller information. You should keep a copy of this for your own records. Only sign over the title once you have received payment.
Creative Ways to Repurpose an Old Car
Turning It Into a DIY Project
Instead of selling your used car, you can also recycle the parts yourself and turn it into a DIY project. You can turn your car seat into an office chair, refurbish a wheel into a fire pit and even use an old engine block as a wine rack.
There are several blogs online with dozens of DIY projects you can create with your used car parts.
Using It for Spare Parts
We always think of using new parts when something in our car needs to be replaced, but did you know you can also use used car parts?
Using used car parts is cheaper and they can be just as reliable and safe as new car parts. That said, it is recommended to not reuse safety-critical parts. You should also be aware that used parts will have a shorter life than new ones.
Reusing parts is also better for the environment and reduces the energy involved in the manufacture and transportation of a new part.
Another idea is to repurpose your used car for off-road adventures. It can be hard to know how to dispose of an old car, but actually, you have a lot of options. While you can sell privately or trade it in, there are also a number of environmentally friendly options available to you in California. This could be through California’s recycling programs, or you could even use the parts for your own recycled DIY project.