Getting a California Car Dealer License

First, download the How to Complete an Application for a Vehicle Dealer License booklet and the Vehicle Dealer’s Manual from the DMV website. We’ve provided outlines below, but these resources provide complete explanations of what you need to do and why.

Car Dealer Fees

When you apply for a dealer license, you only pay the fee for the application and then pay the other fees later, after approval. Keep in mind that you're responsible for renting the business and coming up with the surety bond or deposit prior to making your application, which will run you thousands of more dollars.

• Non-refundable application fee: $175
• Family support fee: $1.00
• Autobroker fee (in addition to application fee): $100
• Each branch location (if applicable): $70
• New Motor Vehicle Board fee (for auto sales of new vehicles) $225
• Dealer plate fee: $57 each, plus county fees
• Motorcycle plate fee: $59 each, plus county fees

New Car Dealers

Getting a dealers license requires a long list of forms. This is what auto dealers for new cars must complete before they can get a dealers license, and these forms are bundled together on the DMV website for quick download:

• Application for Original Occupational License, Part C
• Original Application for Occupational License, Part A
• Surety bond of dealer, or cash bond, or passbook or certificate of deposit
• Application for Occupational License personal history questions
• Certificate of Proposed Franchise
• Property Use Verification for Vehicle Dealer’s License
• Appointment of Director as Agent for Service of Process
• Request for Live Scan (fingerprints, offsite, another $32)

In addition:

• Sign the release of financial information (included in the bundle on the DMV website).
• Get fingerprinted, if applying from another state.
• Take a photo of where your dealership will be.

And provide copies of:

• Your business license.
• Your resale permit and fictitious name statement.
• Your signed lease or proof of property ownership.
• Your filing as a corporation or LLC, if applicable.

Used Car Dealers

The process to become a car dealer of used cars is a little different.

First, you must pass a training program and exam.

Then you may complete these forms:

• Applications for Original Occupational License
• Original Application for Occupational License
• Surety bond of Dealer
• Authorization to Release Financial Information.
• Property Use Verification for Vehicle Dealer’s License.
• Application for Occupational License Personal History Questionnaire, Part B
• Appointment of Director as Agent for Service of Process
• Request for Live Scan (fingerprinting, which costs another $32 and is done at a third-party office)

In addition, provide:

• Dealer Education Certificate (the class you took first).
• A copy of your filing as a corporation or LLC, if applicable.
• Copies of your fictitious name statement, lease, business license, and resale permit.
• Photos of your dealership location.

What Happens Next?

You must turn these completed forms and other documentation in to an Occupational Licensing Inspections Office. Locations are on the CA DMV website.

The next step before you can begin car sales is allowing time for a state inspector to go over the application and do the background check.  The inspector will then visit the business site and inspect it.

Once you have passed these hurdles, the inspector will issue you a temporary permit, then a regular license in about 120 days.

The dealer license is good for one year, then you can renew every two years.

If you do not pass, you will be told why.

Abbreviated Application

You should file an Abbreviated Application if you have:

• A business bankruptcy.
• Conviction.
• Outstanding civil judgment.
• Prior departmental actions.

An Abbreviated Application for dealers will tell you whether you will pass a background check before you go out and rent a business and obtain a surety bond.

The cost is still $175.

Contact an Occupational Licensing Inspector for details.