How do you get a car dealer's license in California?

Answer 1

In the state of California:

• You must take a dealers course (approx. $150) and a follow up course depending on the volume you plan on selling.

• After you take your course you need to provide proof and do to the DMV and take a test.

• You need to provide proof that your business location is approved by the city for auto sales.

• You need to pay a $150 application fee to the DMV.

In more detail:

To become a licensed car dealer the State of California Department of Motor Vehicles requires a dealer applicant to take a six hour preparation class to become a licensed car dealer. There are 2 main types of dealers, retail or wholesale. Retail Dealers have more restrictions as liability which required more dealer insurance as well as a larger dealer bond, but retail dealer are the only dealers allowed to sell to the public. Wholesale dealers may only sell to other dealers.

The applicant must take the class and pass a 40 question test, then submit an application and a bond, then submit photos and pass an on-site inspection. Upon review the DMV inspector will review the dealer's application and then approve the tempory license. Often the largest struggle for those attempting to start a retail dealership is the zoning for the city or county to allow a dealership at the choosen location. Make sure that the location you choose is zoned properly and/or will be an acceptable location for a retail dealership. Rarely do wholesale dealerships struggle getting proper zoning permission from the government.

Once a would be dealer passes the test they must prepare for DMV approval from the inspector. To prepare the following tasks must be done. The applicant must produce 11 photos 1)building 2)outside sign 3)display area 4)office 5)business license 6)resale permit 7)telephone 8)inside signs 9)locked cabinet 10)checkbook 11)dmv dealer book

Then the applicant must submit: zoning approval letter, OL902 certificate of class completion, TSM888 business license resale permit ficticious name statement telephone listing livescan fingerprint card personal history questionaire completed dmv dealer application bond in the name of the owner / dealership.

Temporary license can be granted within 30 days permanent license can be granted within 120 days.