How to get your California dealers license to sell vehicles
- Author Garrett Eddings
- Published August 25, 2023
- Word count 667
If you're interested in selling cars in California, you'll need to obtain a car dealer license from the Department of Motor Vehicles (DMV). While having a car lot is one way to meet the DMV's requirements, it's not the only way. In fact, you can get a car dealer license in California without a car lot. Here's how:
Car for sale California
- Determine the type of dealer license you need:
The DMV issues several types of dealer licenses in California, used car dealers, and wholesale-only dealers. Each license has different requirements and fees, so it's important to determine which type of license you need before you begin the application process. Here’s how you determine which license is going to be right for you:
Retail used car dealer – A retail dealer license is the most popular license because it allows you to sell vehicles to the public. The bare minimum requirements for a retail license is having a commercial office with two parking spots. This, however, can be something as minimal as an executive suite with two parking spots. There are some locations in California with DMV approval where you can have just one parking spot. This can help minimize the costs of startup
Wholesale car dealer – If your insistent on no commercial location whatsoever and doing it out of your own private residence, then getting your wholesale dealer license is the way to go. Keep in mind that having your wholesale dealer license only allows you to sell to other licensed dealers and you are strictly prohibited from selling to the public.
In order to operate out of your home, your wholesale dealer license will have to be based in an area of your residential property that has a direct entry point from the outside
- Complete a pre-licensing education course
Before you can apply for a car dealer license in California, you must complete a pre-licensing education course that covers the basics of the car dealer business, including dealer obligations and regulations. There are several approved providers of pre-licensing education courses in California, and you can choose one that works best for you.
- Obtain a dealer bond
All car dealers in California must obtain a dealer bond, which is a type of insurance that protects customers from financial loss if the dealer fails to meet their obligations. The amount of the bond required depends on the type of dealer license you're applying for, but it's typically between $10,000 and $50,000.
- Obtain a business location
While you don't need a car lot to get a car dealer license in California, you do need a physical location for your business. This can be a commercial office space or a home office, as long as it meets certain requirements set by the DMV. Your location will need to be inspected by the DMV before you can be approved for a dealer license.
- Obtain insurance
All car dealers in California are required to have liability insurance, which covers damages or injuries caused by vehicles sold by the dealer. The amount of insurance required depends on the type of dealer license you're applying for, but it's typically between $100,000 and $250,000.
- Complete the application process
Once you've completed the pre-licensing education course, obtained a dealer bond, obtained a business location, and obtained insurance, you're ready to apply for your car dealer license. You can apply online through the DMV's website, or you can submit a paper application by mail.
- Pay the fees
There are several fees associated with getting a car dealer license in California, including an application fee, a license fee, and a registration fee. The amount of the fees depends on the type of dealer license you're applying for, but it's typically between $175 and $1,000.
In conclusion, while having a car lot is one way to meet the DMV's requirements for a car dealer license in California, it's not the only way. By following these steps, you can obtain a car dealer license without a car lot and start selling cars legally in California.
If you're interested in taking a class to get certified to open an auto dealership in California, feel free to reach out to Garrett Eddings at California Dealer Academy.
www.californiadealeracademy.com
Article source: https://articlebiz.comRate article
Article comments
There are no posted comments.
Related articles
- Best Stair Lifts for Home in the UK: A Complete Guide by Homelife Stairlift
- Why Exhibit at China International Consumer Electronics Exposition 2025
- Barbra Streisand: From Brooklyn to Hollywood Royalty.
- Meditation for Athletes
- My Lash Journey: Confessions of a Total Newbie
- How Does the U.S. Black Women’s Chamber of Commerce Champion Black Women-Owned Business Support and Development Nationwide?
- The Origin of Policeman's Heel: Uncovering the Name's History
- Why Foreclosure Defense Matters
- Why I’m Obsessed with Antique Armoires as Statement Home Bars
- The Sting: A Cinematic Con of Masterful Deception.
- Ranch Revival: Statement Doors & Artisanal Elegance
- Improving Foot Health with Toe Separator Socks
- The Pseudoscience of Reflexology: Fact or Fiction?
- Choosing the Right Wound Dressing: Foam, Hydrocolloid, and Alginate
- Charlie Chaplin: The Silent Genius Who Spoke to the World.
- Custom Domain Landing Page
- Christian Counseling A Unique Approach to Counseling
- Should You Do an Executive MBA After BBA Explained
- BBA Students Who Launched Million-Dollar Startups!
- Avatar: The Cinematic Revolution That Redefined Hollywood.
- How Does the U.S. Black Women’s Chamber of Commerce (USBWCC) Empower Black Women Entrepreneurs?
- Free Test Management Tools: Top Picks for QA 2025
- How to Get Placed FAST After BBA! Must-Know Tips!
- Exploring the Effectiveness of Magnetic Insoles
- The Top 5 Industries That Hire BBA Graduates
- How to Build a Personal Brand as a BBA Student!
- Wellness for Athletes
- Michael Mann: The Architect of Grit and Grandeur.
- Don't Risk A Gray Divorce!
- Mental Toughness Exercises