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You must pay tax based on the used sale price, but (archive)
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Posted by Irv on August 26, 2001 at 22:45:23:

In Reply to: CA Used Vehicle Tax? posted by NewToCA on August 26, 2001 at 21:55:49:

the seller & buyer fill out a form in which you can specify any price you want. That price is used as the tax basis. Keep it within reason (like low blue-book), otherwise the DMV may ask for proof if it's out of blue-book range.

If it's an older car, you have a lot more price flexibility.

P.S. Please don't quote me!

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