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What Does It Take to Get a Car Dealer License

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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. Dealer 101® is 5-Star rated and provides DMV Approved training programs. We've helped thousands of people just like you to get their California Dealer License. They can now admission auctions and wholesale deals that are closed to the public. Learning how to get a vehicle dealer'south license in California tin exist disruptive and nosotros can help. We put together this pace-past-step guide that explains how piece of cake it is to go your dealer'due south license in California. Nosotros comprehend all of these topics (and more), during our online courses.

one. Take The Required Dealer Pre-License Training Class (California DMV Canonical)

California requires anyone wanting a Wholesale or Retail Dealer License to have a "Pre-Licensing Class". No manufacture feel or additional preparation is required. By completing the one-mean solar day (6 hours) training outset, yous tin salvage a lot of wasted fourth dimension and expense.
Our DMV Canonical grade is 100% online and led past an experienced Instructor and a Licensed Dealer. You lot can attend using your smartphone, tablet, or computer. No photographic camera or microphone is required. After registering, you will receive your clickable link to join the course, a detailed form Dealer Written report Guide. You volition have a Conversation where you can ask the Instructor any questions. After the class, yous will receive a recording of the entire class that you attended. Your DMV Document of Completion volition exist sent to you, the following business twenty-four hours. We now offering two DMV-approved training options.

  • Online with an Instructor – nourish a vi-hour "live" class on a Midweek or Saturday
  • Online Habitation Written report  – consummate the training on your own schedule, at any time of 24-hour interval

Get Started

2. Laissez passer the DMV's Dealer Examination

The California DMV requires that you pass an in-person, test at the DMV role.

  • If applying equally a Corporation or LLC, 1 fellow member must pass the test
  • If applying as an Individual, that 1 person must pass the examination
  • If applying as a Partnership (without a Corporation or LLC), all partners must pass the test.

Schedule Your Test at the DMV Occupational Licensing role

In one case you accept your DMV Certificate of Completion from u.s.a., you lot can call your nearest DMV Occupational Licensing office to schedule your exam. The DMV requires the Certificate as proof that you have completed your preparation and sympathise the DMV regulations and requirements.

Practice For Your Test at Dealer 101

Nosotros have an first-class (gratis) online Practice Test to ensure y'all're ready to visit the DMV. You can repeat our Practice Test every bit many times every bit you like, at no cost.

Take the Exam at The DMV Occupational Licensing part

Make an appointment at your nearest California DMV Occupational Licensing Office. To pass, you will need a score of 70% or higher (28 correct answers from 40 multiple-choice questions). You are allowed 3 attempts to pass.

3. Decide on a Dealer License Blazon

California has two types of Dealer licenses for selling pre-owned vehicles; Retail and Wholesale .

  • Retail Dealers  can admission dealer-simply auctions, sell to other Dealers -and- sell vehicles to the public. Retail Dealers are required to accept an approved commercial part.
  • Wholesale Dealers can also access dealer-but auctions, sell to other Dealers but non to the public . Wholesale Dealers may work from a home part. Some Wholesale Dealers work in partnership with a Retail Dealer to sell through to consumers.

Lesson: Retail and Wholesale Location Requirements]

4. Decide – Corporation, LLC, Partnership, or Sole Proprietor?

You tin employ for your Dealer License as a Corporation, LLC, Partnership, or equally a Sole Proprietorship (a individual individual). If you lot determine to fix up your Dealership as a Corporation or LLC, y'all need to supply the DMV with documents showing Officers that will be active in the operation of your Dealership.

  • Swyft Filings
  • Inc Authority

Proper noun Your Business

Yous will need a business proper name for your license, bank account, and various permits. If you programme to operate your Dealership using a name other than actual Corporation, LLC, or personal proper noun, you must file a Fictitious Name Statement (also known every bit a DBA) at your local County Recorder'southward office.

  • Notice where to file your Fictitious Proper noun Argument in your area

5. Open a Bank Account

Retail and Wholesale Dealers must open and maintain a bank account in the proper noun of the dealership. The DMV will verify your banking company account but not your residue or credit rating.

6. Get a Alive Scan

"Live Browse" is a fingerprinting service where your fingerprints are sent to the Department of Justice for a criminal background check. The DMV requires this scan to uncover past criminal activities within the past 10 years that may prevent you from obtaining a license. If y'all're unsure if your background cheque will pass DMV standards, you can submit an Abbreviated Awarding for DMV review.

  • LiveScan forms and locations
  • Can I get a dealer license with a felony or misdemeanor?

7. Secure a Location (and your Dealer address)

Retail and Wholesale licenses both require a physical place of concern that houses your accounting and concern records. At the DMV's discretion, a California DMV Inspector may visit your location to verify information technology is in compliance with the DMV'south requirements.

  • Wholesale Dealers must accept an part and it may be located in a residence or commercial location. The domicile office must be straight attainable from outside, on the ground floor. For example, walking through the kitchen to reach the office would exist unacceptable.
  • Retail Dealers are required to have a commercial part defended to your dealer business, a 2-foot square sign with your name and accost posted permanently outside, and a display area. The brandish surface area must exist big enough for at least one vehicle and reserved as a "Display Surface area Just".

8. Use for Your Permits

City Business concern License

If required in your area, yous must obtain a Business License at your local metropolis or town part'southward Tax or License division. This license may be chosen a Business License, Certificate of Occupancy License, or Tax Certificate.

  • Find where to apply for a Business organisation License in your area

Seller's Permit from the CDTFA

Both Retail and Wholesale California Auto Dealers must have a Sellers Permit from CDTFA. To obtain a Sellers Let, you can walk in your local CDTFA role (California Section of Tax & Fee Assistants) to obtain a Sellers permit, which allows you to collect taxes.

  • Learn more and apply online

9. Go a Dealer Bail

Each Dealer applicant must provide a valid Dealer Surety Bail that protects consumers and the Country of California from Dealers should they fail to pay their DMV fees or remit sales taxes they collected. Retail Dealers must obtain a Bond with a $50,000 value. Wholesale and Motorcycle/ATV Dealers crave a $10,000 Bail. The price of the Retail bond ranges based on your personal credit score. Wholesale bonds do non crave a credit cheque. You can obtain a no-obligation Bond Quote using the links below.

  • Become a Quote for $50k Retail Bond (averages $500+/twelvemonth)
  • Get a Quote for $10k Wholesale Bond ($100/year)

ten. Apply for Your License

Prepare & Submit Your Application

For either license type, you lot'll need to complete a " Used Dealer Application ". The DMV has a great Checklist that details everything yous need to include with your awarding. We recommend that yous drop off your completed application in person at your nearest DMV Occupational Licensing Office. You lot'll meet your local DMV Inspector(s) there and tin can prepare upward an appointment for your location inspection. We have an excellent program that includes all the required DMV forms and step-past-step video instructions on how to consummate them.

Application Forms & Instructions

Host the DMV Inspection

After reviewing your application, your Inspector will contact you to coordinate a meeting with you to audit the premises. The Inspection usually takes only a few minutes. When the Inspector approves your location, they will manus you a Temporary Dealer License.

Summary

As y'all can encounter, it'due south non difficult to get a Car Dealer'due south License in California. It's a procedure that we have helped many people navigate to obtain their licenses and start their own businesses. Set to get started? Register for one of our online, DMV Authorized, Dealer Pre-License courses .

Questions? Contact Us

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Source: https://dealer101.com/how-to-get-a-car-dealers-license-in-california/

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