Guide to Buying a Used Car in California

Buying a used car in California comes with plenty of advantages, from a wide selection of vehicles to consumer protection laws that help buyers make informed decisions. Whether you’re looking for a fuel-efficient sedan, a spacious SUV, or a reliable truck, Ontario Auto Center offers a wide range of used cars across our 17 dealerships. This guide covers everything you need to know about buying a used car in California, including how to inspect a vehicle, understand taxes and fees, and take advantage of legal protections.

Check the Vehicle History Before You Buy

Before purchasing a used car, always check the vehicle history report. This can reveal important details about past accidents, ownership history, and title status. Services like Carfax allow buyers to enter the car’s Vehicle Identification Number (VIN) and get a full report. If the car has a salvage title or major repairs, it may be best to reconsider the purchase.

Test Drive and Inspect the Car

A thorough test drive and inspection can help identify potential issues before finalizing a deal. When test-driving a used car, pay attention to how it accelerates, brakes, and handles different road conditions.

During the inspection, check:

  • Tire condition and tread depth
  • Brake performance and any unusual noises
  • Engine sounds and responsiveness
  • Air conditioning, heating, and electronics
  • Doors, windows, and locks

Looking under the hood for leaks, corrosion, or worn belts can also provide insight into the car’s condition. If possible, have a trusted mechanic inspect the vehicle before making a purchase.

Understanding California’s Used Car Lemon Law

California’s Used Car Lemon Law provides protection for buyers who purchase a vehicle from a dealership that turns out to have significant defects. The law primarily applies to cars that are still under the original manufacturer’s warranty. If a dealership sells a car with a warranty and cannot repair a major defect after multiple attempts, the buyer may be entitled to a refund or replacement.

This is one reason many buyers choose to shop at licensed dealerships rather than private sellers. At Ontario Auto Center, all vehicles go through inspections, and many come with additional warranty options for peace of mind.

How Much is Sales Tax on a Used Car in California?

Used car sales tax in California varies based on the buyer’s location. The state base tax rate is 7.25 percent, but local district taxes can increase the rate in certain areas. Some cities have total tax rates exceeding 10 percent.

Other fees to consider include:

  • Title transfer fee (typically $15)
  • Registration fees based on the car’s value and weight
  • Smog certification fees for applicable vehicles

When buying from a dealership, these costs are usually handled as part of the transaction, making the process more convenient.

Private Seller vs. Dealership: Which is the Better Option?

Buying from a private seller can sometimes lead to lower prices, but it also comes with added risks. Private sales typically do not include warranties, and buyers must handle all registration and paperwork themselves.

Buying from a dealership provides advantages such as:

  • Certified Pre-Owned (CPO) options with warranty coverage
  • Dealer-handled paperwork and registration
  • Financing options for easier payment plans
  • Inspected vehicles with transparent history reports

Ontario Auto Center offers a wide range of used cars across multiple brands, allowing buyers to compare models in one location while benefiting from dealership protections.

Negotiating the Best Deal

When negotiating a used car purchase, research market pricing through Kelley Blue Book or Edmunds to understand what similar models are selling for. Starting slightly below market price can provide room for negotiation.

Other negotiation tips include:

  • Separating discussions for price, financing, and extras like warranties
  • Staying focused on the total price rather than monthly payments
  • Being willing to walk away if the deal doesn’t meet expectations

Used EV Tax Credits and Rebates in California

If you’re considering a used electric vehicle (EV) in California, you may qualify for financial incentives that can make your purchase more affordable. Both federal and state programs offer opportunities for savings.

  • Federal Used EV Tax Credit: The federal government offers a tax credit for used EVs under the Inflation Reduction Act. This credit is equal to 30% of the sale price, up to a maximum of $4,000. To qualify, the used EV must be at least two model years old, cost $25,000 or less, and be purchased from a licensed dealer.
  • California Used EV Incentives: While California doesn’t offer a specific state tax credit for used EVs, there are other incentive programs available such as Clean Cars 4 All. This program assists income-eligible individuals in older and less efficient vehicles replace their cars with newer, cleaner vehicles, including used EVs.

Before buying a used EV, it’s crucial to verify program eligibility and availability, as incentive programs and their requirements can change. Ontario Auto Center offers a selection of electric vehicles. We encourage you to research available incentives and contact us to explore our inventory of electrified vehicles that fit your needs.

Finalizing the Purchase and Registration

Once a price is agreed upon, the final steps include signing the bill of sale, transferring the title, and ensuring the car meets California’s smog requirements. Dealerships typically handle the DMV paperwork, making the process smoother than buying from a private seller.

Frequently Asked Questions About Buying a Used Car in California

What is the used car lemon law in California?

California’s used car lemon law protects buyers who purchase a vehicle that is still under the original manufacturer’s warranty. If the dealership cannot repair a major defect after multiple attempts, the buyer may be eligible for a refund or replacement.

How much is sales tax on a used car in California?

The base sales tax rate for used cars in California is 7.25 percent, but local taxes may increase the total amount. Some areas have rates exceeding 10 percent.

Do I need a smog check to buy a used car in California?

Most vehicles over four years old require a smog certification before being registered in California. If buying from a dealership, they typically handle this for you.

Is it better to buy a used car from a dealer or a private seller in California?

Buying from a dealership offers more protections, such as warranties and dealer-handled paperwork. Private sellers may offer lower prices but come with added risks and no guarantees.

Find Your Next Used Car at Ontario Auto Center

Buying a used car in California is a smart choice when done correctly. With a wide selection of vehicles, dealership protections, and financing options, Ontario Auto Center makes the process easy. Visit one of our 17 dealerships to explore our inventory and schedule a test drive. Contact us today to find the perfect vehicle for your needs!

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While great effort is made to ensure the accuracy of the information on this site, errors can occur. Please verify all pricing information with a customer service representative. This is easily done by calling us or visiting us at the dealership.

Customer may not qualify for ALL Rebates shown. Some rebates are stackable and others can and cannot be combined. See Dealer For Complete Details.