Yes you can drive your Toyota legally after it fails the smog test only
inspection until the registration tags expire. I'd recommend you get the
smog test as soon as possible and send in the retirement application form.
It usually takes a few weeks to get the approval. After getting the approval
to sell your Toyota to the state, you will have a few weeks to complete the
transaction. If you start the process now everything will fall into place
before your tags expire.
posted by SmogTips Support