How to Sell a Vehicle That Is Not Paid Off in California?

California laws allow for a change of ownership for a vehicle even if it has not been paid off. The process for title transfer is straightforward, but to sell a vehicle that is not paid off in California the current owner must obtain an authorized signature from the vehicle's lien holder. The lien holder is the entity that legally owns the vehicle, according to the Department of Motor Vehicles' records. This ownership is reflected on the vehicle's Certificate of Title or "pink slip."

Instructions

1

Obtain or provide a smog certificate that is less than 90 days old. Hybrids, electric, diesel and natural gas vehicles over 14,000 pounds are exempt from this requirement. Motorcycles, trailers, vessels and automobiles made before 1975 also are exempt.

2

Enter the odometer reading in the designated area on the California Certificate of Title. Vehicles older than 10 years are exempt from this step.

3

Sign and date the title in the appropriate section.

4

Obtain the lien holder's authorized signature in the appropriate section. Have the signature notarized to avoid future conflicts.

5

Ask the buyer to fill out and sign the transfer information on the back of the title.

6

Visit the DMV's online Notice of Transfer and Release of Liability system and follow the onscreen instructions (see Resources). This step must be completed within five days of the sale of the vehicle.