This is how I understand it as well, however i think there are some exceptions/provisions for gifting vehicles to immediate relatives. I wouln't try to lie about this though to save a few hundred $$ and risk possible criminal prosection. The state doesn't take kindly to people commiting fraud.
When I was in CA, they used the value you wrote down, however if the amount was substantially different from the taxable value in their tables they errored on the states side.