DMV Dealer Licensing
The 13 Steps To Your CA Dealer License
Here's what you need to know:
If you want to access dealer-only auctions and sell (or flip) even one vehicle in California for profit, you are legally required to have a dealer license. We’ve helped hundreds of people like you get their California Dealer licenses.
Figuring out how to get a vehicle dealer’s license in California can be confusing, and time consuming. We put together this step-by-step guide that explains how confusing & time consuming it can be to get your dealer’s license in California.
1. Business Entity Structure
The first step is to discuss how you want to establish your business entity structure.
- Sole Owner (DBA- Fictitious Business Name)
- Corporation
- LLC
2. Register Dealer Business Name
- Register Business with County or State depending on the entity structure.
- Obtain EIN/ TAX
- Publish your DBA or File Corp SOI
Benefits of choosing a Corporation or LLC
- Only one person takes the Pre-License Training
- Multiple people can be on your Dealer License
- More people can use Dealer Plates for personal useYou can establish your Corporation or LLC online by visiting (put link to contact louis via text)
3. Decide on a Dealer License Type
California has two types of Dealer licenses for selling pre-owned vehicles; Retail and Wholesale.
- Retail Dealers can access dealer-only auctions, sell to other Dealers -and- sell vehicles to the public. Retail Dealers are required to have an approved commercial office.
- Wholesale Dealers can also access dealer-only auctions and sell to other Dealers but not the public. Wholesale Dealers may work from a home office. Some Wholesale Dealers work with a Retail Dealer to sell to their vehicles to consumers.
4. Pre-License Dealer Training Class
The California DMV requires anyone wanting a Wholesale or Retail Dealer License to take a “Pre-Licensing Class.” No industry experience or additional preparation is needed.
- Complete the 6 hours of Training to obtain your Certificated.
- There are two courses available online home study self-pace or 1 day online via zoom for 6 hours with a Live Approved Instructor.
Online Home Study
The online course is made up of 33 lessons with a short video, notes, and two practice questions for each lesson. There is no time limit and you can start and stop at any time. Your progress is always saved. You can use your smartphone, tablet, or computer. After registering, you’ll receive your clickable link to start your training.
5. Get a Live Scan
- Get your Live Scan Completed
We will provide you with the form and Instructions on where to go to have your Live Scan completed to a location nearest you.
6. Set up your Online DMV Application account
Create and set up DMV Account to begin uploading the Permits & License per DMV requirements.
7. Schedule Appointment & Pass the DMV’s Dealer Test
- We will schedule your appointment online for you to take the DMV’s Dealer Test.
8. Open your Business Bank Account
- We will provide you with the documents you need to open your dealer business bank account.
9. Secure your Location / Dealer Address
Retail and Wholesale licenses require a physical place of business that houses your accounting and business records. At the DMV’s discretion, a California DMV Inspector may visit your location to verify it complies with the DMV’s requirements.
- Wholesale Dealers must have an office, and it may be in a residence or commercial location. The home office must be on the ground floor and directly accessible from the outside. For example, walking through the kitchen to reach the office would be unacceptable. The DMV wants to be able to access the office from outside. You can often use your garage as your office.
- Retail Dealers are required to have a commercial office dedicated to their dealer business, a two-foot square sign with your name and address posted permanently outside, and a display area. The display area must be large enough for at least one vehicle and reserved as a “Display Area Only.”
- We provide the signs required.
10. City Business License
- We will fill out the City or County Business License Application to obtain the City or County Business License.
11. Seller’s Permit from the CDTFA
- We will fill out the CDTFA Online Application to obtain your Seller’s Permit
12. Get a Dealer Bond
- We will fill out the Bond Application to obtain Quote from Surety Company with the most competitive pricing in the industry to satisfy the DMV Dealer Requirements.
Retail Dealers must obtain a Bond with a $50,000 value.
Wholesale and Motorcycle/ATV Dealers require a $10,000 Bond. The cost of the Retail bond ranges based on your credit score. Wholesale bonds do not require a credit check.
13. Apply for Your California Dealer License
- We will prepare and fill out all the paperwork from A to Z needed to make its ready to be Submit your Application online.
- After applying online, you will be able to schedule an appointment for your location inspection.
- Host the DMV Inspection
After reviewing your application, your Inspector will enable your account to schedule your inspection. The Inspection usually takes only a few minutes. When the Inspector approves your location, they will hand you a Temporary Dealer License.
Summary
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