Can I transfer ownership of a car in California using an MSO?

[John]

Hey folks, this has nothing to do with GT40, but I found some topics about the subject in this forum and noticed there are some very knowledgeable people here whom I am hoping will be able to help.

I purchased an exotic car out of state, and for reasons beyond my control, I now have to sell it. It has not yet arrived in California. The car has around 300 miles on it. It wasn't registered in any state, and I am holding the original MSO.

I contacted the DMV several times and was assured that I can transfer ownership of the car to my buyer using the MSO without any issues –

BUT – the lack of any actual law or Google search results on the subject still worries me...

So – is it actually possible?

 

[Lee Patterson]

My two cents - you should check with a lawyer knowledgable on the topic, but - since you have not registered it, CA DMV has nothing to do with it. In essence, they know nothing about the car. If the car has never been registered (I am assuming here that is the case as you have the MSO in your physical possession), sell the car to the next person us the MSO which I am assuming is how you bought it?. Let them then go register it. But maybe I am missing facts in the case?

 

[Randy V]

Welcome to GT40s, John.

My two cents - you should check with a lawyer knowledgable on the topic, but - since you have not registered it, CA DMV has nothing to do with it. In essence, they know nothing about the car. If the car has never been registered (I am assuming here that is the case as you have the MSO in your physical possession), sell the car to the next person us the MSO which I am assuming is how you bought it?. Let them then go register it. But maybe I am missing facts in the case?

Good info here. One step further would be to give the buyer a Bill Of Sale for the car. Per my recollection, my name was not on the MSO of my GT40 or any of the Factory Five Cobras I built. The MSO is just a piece of paper that Identifies the chassis and collection of parts as having come from a manufacturer and were not scratch built..

 

[Howard Jones]

First: If you title the car and register it, it will more than likely be worth more to a potential buyer and sell for a higher price for you.

Second: Are you in California now and where is the car located? If the car is now located in California with you and you intend to sell it there then if I was in your shoes I would at least determine what the process was to get it registered and titled in California. If that was convenient I would do that first and then sell it. But his avenue does have a few negative points.
A. you will need to pay use tax for it. This is basically sales tax on the amount you bought the car for less any previously paid sales tax on components you bought in California.
B. you will need to navigate the California DMV to determine the correct process. If you are located in a major metropolitan area such as SF Bay Area or LA area then at least one of the local DMVs will be familiar with this kind of transaction. Contact the big ones and ask where you would be best served.
C. The Cobra Club Forum is very informative when it comes to this issue. I would check there as well as here.

Let us know your location in California. I am familiar with the SF Bay Area and know where to send you there.

Note: The California SB100 process is intended to be used for a home-built kit car or a self-constructed car that you are saying you built yourself, have most of the receipts, and that has NEVER been registered before. It will issue the equivalent of a VIN number for your car. An established VIN number on your car makes it more valuable in my opinion.

But a car that is complete when you buy it is not the intended purpose of the SB100 process, however, there is a proper process for everything with wheels on it. I know of no instance where a car could not be properly registered in California as long as the owner could prove legal ownership.

Or, you can simply sell it as is and bargain for the best sales price you can. What kind of car are we talking about if you don't mind telling us?

 

[Lee Patterson]

He wrote the car was purchased outside California and is not in the state.

I have seen MSOs with the purchaser's name on it and those without it. Some states take the MSO, some don't. Not sure why.

Did you pay sales / use tax when you bought it?

 

[John]

Highly appreciate all the help!

The car was purchased brand new from the manufacturer - was driven a little bit out of state - and then shipped to my home at, nice guess, the SF Bay Area. I never intended to "flip" the car, I actually thought I will keep it to the day I die, but life happened and I have to sell it, and I would prefer to avoid paying 5 digits sales use tax (it is called use tax because you are paying for using the car on California roads, not for the actual purchase, huge difference). I have the MSO at hand and it is under my name. There is the manufacturer logo on the top with all the vehicle identifications and my name and address.

I already have a buyer - the only thing both of us are worried about that when we go into the DMV office, they won't know the process and will cause problems transferring the car under my buyer's name.

Edit: To answer the latest question - I haven't paid any tax on it as it wasn't registered anywhere.

Edit2: My buyer is also from California

Edit3: Just to clarify - I have three recorded conversations with different DMV representatives, all confirming that I can transfer ownership with the MSO and a bill of sale. It seems like common knowledge there, but the lack of evidence online of anyone doing that makes me a bit worried.

 

[Lee Patterson]

I would get a lawyer.

 

[Julian]

I purchased my ERA on a 1993 MSO in 2013! It had changed hands a couple times and as long as whoever titles it has the complete paper trail from the name on the original sale / MSO it should be good.

 

[Howard Jones]

Ok, got it. There are two or three DMV offices in the SF Bay Area that have dealt with a LOT of kit car type/SB100 cars.

I know that the Pleasanton office is very competent on this issue. They did both of my SB100 cars, my GTD40 and SLC as well as several others that I personally know of. My friends in N. California with Corbra kits have told me that the Alma Street location has done a lot of them as well as the Flora Vista location. Be sure to call ahead and ask about your issue. Try and meet with the person who knows what you need. This is not impossible it just requires a bit of persistence. If you need to go somewhere else then call ahead and find out who knows how to do what you need.

You can also call the main DMV in Sacramento. Be sure to tell them that you need the kit car person.

You may need to drop in and ask your question with the idea of finding THE person who is familiar with the issue. Usually, the first person at the counter isn't it. Ask that first person who is the BEST person for you to talk to and that you are willing to wait or come back.

If you can be sure of how to register the car then you can tell your buyer that information and who to contact. He can then confirm what you have discovered so that he can be comfortable with the purchase.

Good luck. All will be well.

San Francisco Bay Area DMV Locations - Bay Area Movers

If you’re new to the Bay Area or just relocating from a different part of the region, you’ll want to know the location of the nearest Department of Motor Vehicles. On this page you’ll find a listing, along with contact information, for all full-service DMV offices throughout the Bay Area. Please...

www.bayareamovers.co

 

[Howard Jones]

I found this, I don't know how old it is, but I believe that I remember doing most of this stuff.

https://www.jeffchan.com/cars/nckcc98/ca-register.html

KitCarTitle/Registration

Here is a thread on Club Cobra that is pretty recent (2023):

California SB100 - Title Transfer - Question - Club Cobra

Hey guys new to the forum. Just purchased a Cobra Replica that is currently registred and titled in California with a SB100 Certificate. I am trying

www.clubcobra.com