6.000 Introduction (VC §§4000, 4450, 4451, and 4453)
Vehicles operated or parked on public roads or in an off-street public parking facility in California must be registered. The registration card is issued to the registered owner of the vehicle and the California Certificate of Title is issued to the legal owner/lienholder, or to the registered owner if there is no lienholder. Both certificates contain registered and lienholder information.
Chapter 6: New Vehicles Sold by California Dealers
6.005 Manufacturer’s Certificate/Statement of Origin
6.010 Manufacturer Sales to Charitable Organizations
6.020 New Vehicles Altered Before Registration
6.025 New Vehicle Sales by a California Dealer
6.030 New Vehicles Sales by a Non-Dealer
6.035 New Vehicle Sales by a Nonfranchised or Used Vehicle Dealer
6.040 New Vehicle Sold for Exclusive Use on Private Property
6.045 New Vehicle Sold for Export to Another Country
6.065 Repossession From a Dealer
5.080 Zero Miles Reported on New Vehicles
Documents submitted for registration of new vehicles may show the odometer mileage as “0,” but due to programming constraints for DMV’s automated system, the number “0” generates an error message.
If an application shows the mileage as “0” the technician must:
- Key “1” in the ODOMETER field on the DATA COLLECT screen.
- Continue processing.
5.075 Vehicle/Vessel Transfer and Reassignment Form (REG 262)
The Vehicle/Vessel Transfer and Reassignment Form (REG 262) is used for odometer disclosure when:
- The title is a noncomplying title.
- An Application for Replacement or Transfer of Title (REG 227) (PDF) form is required and is part of the application.
- The title is unavailable at the time of transfer.
- There is an error or alteration in the odometer disclosure section of a complying title or Application for Registration of New Vehicle (REG 397) form.
- There are multiple transfers.
The REG 262 must be completed in ink, not pencil, as follows:
Section 1: Vehicle/Vessel Identification—The complete vehicle identification number (VIN) must be shown or the application will be returned as incomplete.
Section 2: Bill of Sale—Provided for convenience and may be used whenever a bill of sale is required. The seller’s signature is required in Section 4 when used as a bill of sale only. This section is not required to be completed when the REG 262 is used for odometer disclosure only. The Bill of Sale (REG 135) (PDF) form is available online.
Section 3: Odometer Disclosure Statement—Completed at the time of sale by the seller disclosing the mileage and signed by both buyer and seller. Errors or alterations void the odometer disclosure statement. A new REG 262 for the odometer disclosure is required with a Statement of Facts (REG 256) (PDF) form explaining why a separate odometer disclosure is attached.
Important If the Bill of Sale (Section 2) and/or Power of Attorney (Section 5) information was completed, retain the REG 262 with the application even when the Odometer Disclosure Statement (Section 3) contains an error/alteration.
Section 4: Buyer and Seller Information—Completed by the buyer and seller:
- A business name may be completed by hand in ink, typewritten, or computer-generated. The authorized agent’s countersignature must be handwritten in ink.
- The printed name(s) and signature(s) of buyer and/or seller must be completed by hand and in ink.
Section 5: Power of Attorney—Provided for convenience and may be used whenever a power of attorney is required. This section is not required to be completed when used for odometer purposes only but is required when an attorney-in-fact signs on the title other than for the odometer. The Power of Attorney (REG 260) (PDF) form is available online.
Return REG 262 forms not completed correctly to the customer.
5.070 Transfers
The following applies to registered owner transfers requiring odometer disclosure:
| If the Title Document Is | Then the Odometer Mileage Reading Must Be Made |
|---|---|
| If the Title Document IsA complying California Certificate of Title | Then the Odometer Mileage Reading Must Be MadeFor private party sales by the: Registered owner (seller) on the front of the title.Buyer on the front of the title acknowledging the same mileage. For dealer sales by: The registered owner (seller) on the front of the title. The buyer on the front of the title acknowledging the same mileage. Each selling dealer in the Dealer Transactions Only section on the back of the title. Each buying dealer in the Dealer Transactions Only section on the back of the title. Note A separate Vehicle/Vessel Transfer and Reassignment Form (REG 262) must be submitted when the dealer disclosure section has been completed and additional disclosure is required. |
| If the Title Document IsA noncomplying California Certificate of Title | Then the Odometer Mileage Reading Must Be MadeOn a separate REG 262 completed by both the seller and buyer. |
| If the Title Document IsA California Certificate of Title that was unavailable at the time of sale | Then the Odometer Mileage Reading Must Be MadeOn a REG 262 completed by both the seller and the buyer. The seller and the buyer must complete the same REG 262. On transactions involving a dealer, the dealer is the seller and the new registered owner is the buyer. The original copy of the REG 262 must be submitted with the transfer application. Important Do not return an application for odometer disclosure on the complying title when a complying title is submitted but the odometer disclosure is on a REG 262. DMV will assume the complying California title was not available at the time of sale. |
| If the Title Document IsAn Application for Replacement or Transfer of Title (REG 227) form | Then the Odometer Mileage Reading Must Be MadeOn a REG 262 completed by both the seller and buyer. The seller and the buyer must complete the same REG 262. On transactions involving a dealer, the dealer is considered the seller and the new registered owner is considered the buyer. The original copy of the REG 262 must be submitted with the transfer application. |
| If the Title Document IsSubmitted with an application involving multiple transfers | Then the Odometer Mileage Reading Must Be MadeOn a REG 262 Separate REG 262 forms signed by the buyer and seller are required for each transfer. Private Party Transfers Only—If requesting disclosures from all in-between buyers/sellers would create an undue hardship on the customer, it is DMV’s policy to accept odometer disclosure from the last buyer and seller only. This policy does not apply to dealer transactions. |
| If the Title Document IsA complying title from another state (goldenrod conversion) | Then the Odometer Mileage Reading Must Be MadeIn the designated section(s) on the title (the location may vary). The registered owner of record discloses the odometer mileage and the buyer(s) acknowledges it. Note Depending on the transaction, an out-of-state complying odometer disclosure statement may be used for odometer disclosure. |
| If the Title Document IsA noncomplying title from another state (goldenrod conversion) | Then the Odometer Mileage Reading Must Be MadeOn an out-of-state odometer disclosure statement or a REG 262. The seller and buyer must complete the same odometer statement. The original copy of the odometer statement must be submitted with the application. |
5.065 Secure Power of Attorney
California no longer produces a Secure Power Of Attorney (SPOA) form. However, continue to accept California SPOA until notified otherwise.
Rules Regarding the Use/Acceptance of an SPOA—Other states may use or provide SPOA forms. The following rules apply to an SPOA submitted with an application. The SPOA may be accepted when the:
- Title is unavailable at the time of sale.
- Vehicle owner was out of state at the time of sale and was given the SPOA by the other jurisdiction.
The SPOA is designed primarily to disclose the odometer mileage reading, but when an SPOA is required for odometer disclosure, it can also be used to appoint an attorney-in-fact to release/endorse the title or an Application for Replacement or Transfer of Title (REG 227) (PDF) form.
Note Any authorized employee of a business entity appointed as the attorney-infact on the SPOA may countersign and exercise the attorney-in-fact privilege.
If an application with multiple transfers contains an SPOA for one of the transfers, the Vehicle/Vessel Transfer and Reassignment Form (REG 262) should be used for any subsequent odometer disclosures. The REG 262 and the SPOA must be submitted with the transfer documents.
Note An out-of-state SPOA may be submitted for odometer disclosure if a lienholder had possession of a nonresident title when a registered owner change took place. The SPOA may be from a different state than the nonresident title.
The state of origin copy of an SPOA to the address shown for the state in the Polk Manual must returned. The state of origin is the state that published the form and whose name may appear on its face. The last person completing the form must distribute the copies.
5.060 Rollbacks and Unwinds
A rollback is a transfer of ownership from the buyer back to the dealer. An unwind is when the retail customer (buyer) does not take possession of the vehicle and the vehicle does not leave the dealership, so the transaction is voided.
The odometer mileage disclosure for rollbacks and unwinds may be disclosed using a Vehicle/Vessel Transfer and Reassignment Form (REG 262).
When a rollback occurs and acknowledgement of the odometer mileage cannot be obtained from the first retail customer, accept a Statement of Facts (REG 256) (PDF) form which explains that fact.
5.055 Repossessed Vehicles
The odometer mileage reading for a repossessed vehicle must be reported by the legal owner (lienholder) of record (repossessor) as follows:
- The lienholder releases interest in the vehicle on the Certificate of Repossession (REG 119) form.
- The word “REPO” is entered on line 1.
- The REG 119 is used to transfer title without the registered owner’s endorsement.
- If the title has a separate odometer disclosure section, the lienholder may complete and sign that section. If there is no separate odometer disclosure section, a Vehicle/Vessel Transfer and Reassignment Form (REG 262) must be completed for odometer disclosure.
5.050 Replacement or Conversion of an Odometer (VC 28053)
An odometer may be serviced, repaired, or replaced, but must reflect the same mileage after the service, repair, or replacement as it did prior. However, if the odometer is incapable of registering the same mileage, the odometer must be
adjusted to zero miles, and a notice in writing must be attached to the left door frame of the vehicle by the person performing the service, repair, or replacement. The notice must specify the mileage prior to the service and the date on which the
service was completed.
The odometer disclosure for a vehicle that has had its odometer replaced or converted from kilometers to miles cannot reflect the “actual mileage” unless a Statement of Facts (REG 256) (PDF) form from the party who replaced/converted the odometer with all of the following information is submitted with the application.
- The date the odometer was replaced.
- The kilometer reading at the time of replacement (old reading).
- The mileage reading at the time of replacement (new reading).
- The conversion ratio used to change kilometers into miles. The National Highway Safety Administration (NHTSA) has established the kilometer conversion to miles ratio at 62 percent. For example, to convert 10,000 kilometers to miles, multiply the kilometers by 62 percent (.62) = 6,200 actual miles.
Important The odometer mileage must be shown as “Not Actual Mileage” if a REG 256 is not or cannot be provided.
5.045 Original Applications
The following applies to original registration applications.
| If the Application Is a(n) | Then the Odometer Mileage Disclosure Must Be on |
|---|---|
| If the Application Is a(n)Application for Registration of New Vehicle (REG 397) form. | Then the Odometer Mileage Disclosure Must Be onThe face of the REG 397, in the odometer disclosure section. Original signatures are required to disclose and/or acknowledge the odometer reading for both the dealer and the buyer. Note Corrections/alterations in the disclosure section invalidate the disclosure and a completed Vehicle/Vessel Transfer and Reassignment Form (REG 262) and a Statement of Facts (REG 256) form explaining the error must be submitted. |
| If the Application Is a(n)Application for Title or Registration (REG 343) form with no change of registered owner. | Then the Odometer Mileage Disclosure Must Be onThe REG 343. |
| If the Application Is a(n)REG 343 with a change of registered owner. Note: A manufacturer’s statement of origin issued or endorsed to the applicant is a transfer and requires an odometer disclosure. | Then the Odometer Mileage Disclosure Must Be on• The out-of-state complying title. • A REG 262. • An out-of-state odometer disclosure statement, if an out-of-state noncomplying title is submitted. If the title was unavailable at the time of sale, the disclosure must be made on a REG 262 or an out-of-state odometer disclosure statement. If the odometer disclosure is on a secure power of attorney, the attorney-in-fact must transfer the odometer disclosure information to the title. |
| If the Application Is a(n)Note Original signatures of the seller/buyer are required for disclosure and acknowledgment of the odometer mileage. Refer to the Errors in Reporting Odometer Mileage section in this chapter for information regarding errors and corrections in odometer mileage reporting. | |