Vehicle Industry Registration Procedures Manual

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Section 12 of 38

Chapter 11: Transfers

11.040 Dealers or Lessor-Retailers

California dealers and lessor-retailers have 30 days from the date of sale to submit on the Report of Sale–Used Vehicle (REG 51) form the transfer application and fees for used vehicle without penalties (VC §9553(c)(1)) and/or administrative service
fee (ASF). This includes nonresident vehicles and vehicles on which the registration expired while in dealer inventory.

This does not apply to vehicles with penalties due or accrued prior to the date of sale to the dealer or lessor-retailer (VC§9553(c)(2)). Penalties continue to accrue unless the fees and penalties due are posted by the dealer.

In addition to the procedures listed in the Basic Transfer Requirements section in this chapter, the following must be submitted:

  • The dealer’s endorsement on the California Certificate of Title. Each dealer’s name and a countersignature or initials must be entered for dealer reassignments on the title. When there is insufficient room for all dealer transfers in the dealer reassignment section, a Vehicle/Vessel Transfer and Reassignment Form (REG 262) is required. The dealer’s name and number should be included on the REG 262.
  • The dealer’s Report of Sale–Used Vehicle (REG 51) form. A REG 51 is not required to register a vehicle taken in trade by the dealership but is required if the dealer registers the vehicle to their leasing division rather than to the dealership.

Sale of Used Vehicle to be Altered—A dealer selling a used vehicle that will be altered before the transfer application is processed may be relieved of responsibility by processing the transfer as a “Customer Demands Title.” If the vehicle will be registered within 30 days of the sale date, the customer copy of the REG 51 may be displayed in the vehicle. However, the dealer then assumes responsibility for completion of the application.