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Section 26

Frequently Asked Questions (F.A.Q.)

26.3 Used Vehicle Rollbacks

  1. A rollback is when the buyer returns the car before the transfer documents have been submitted to the DMV. The REG 51 cannot be voided because the buyer has already operated the vehicle on the road causing fees to become due to DMV.
  2. All fees must be submitted to the DMV within 30 days of the date of sale shown on the REG 51 to avoid Administrative Service Fees. The DMV fees may be posted in the dealer’s name or first buyer’s name.
  3. If you are in a rollback situation, you must submit the following documents to the DMV:
    1. Title endorsed by both the first and second buyers.
    2. A Statement to Record Ownership (REG 101) completed to clarify the current owner information. To obtain a REG 101 go to: http://www.dmv.ca.gov/forms/reg/reg101.htm
    3. A Lien Satisfied (REG 166) form, if applicable. To obtain a REG 166, go to: http://www.dmv.ca.gov/forms/reg/reg166.htm .
    4. A Statement of Facts (REG 156, Section G) containing all of the following:
      1. Name of buyer and date returned
      2. Reason vehicle returned
      3. If vehicle was voluntarily returned
      4. How vehicle was sold (conditional sales contract, etc.)
      5. If a trade-in was returned to the buyer
      6. If down payment was returned and whether it was a cash down payment or cash in addition to a trade-in.
        To obtain a REG 256 go to: http://www.dmv.ca.gov/forms/reg/reg256.pdf
    5. A bill of sale from the first buyer to the dealer.
    6. Two Used Vehicle Reports of Sale (REG 51), one to the first buyer and one to the second buyer .
    7. Odometer disclosure, if applicable, for each buyer.
    8. No new smog certificate is needed if the car was not yet registered to the first buyer. If the car was registered, then a new smog certificate must be obtained.
    9. Two transfer fees, and any other fees due.
  4. You must use a Vehicle/Vessel Transfer Form (REG 262) to disclose the mileage on a rollback or unwind. If an acknowledgement of the odometer mileage cannot be obtained from the first retail customer on an unwind, complete a Statement of Facts (REG 256) explaining the circumstances and submit it with the application.
  5. Note: A lien satisfied is not required if financing was not approved for the first sale, or the lien holder for the second buyer is the same as the first buyer.

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