How to Obtain a California Dealer License Without a Lot if You Live Inside or Outside of California

Dealer Training Podcast

California Dealer License Start-Up Guide

1. Complete 6-Hour Pre-License Course (Online)
2. This course covers all steps, including paperwork, required to apply for your license.
3. Choose License Location

• Residential: Allowed if zoned appropriately; typically only for wholesale licenses.
• Commercial: Ideal for retail licenses; offers higher profit potential and visibility.

1. Obtain Dealer Surety Bond

• $50,000 Bond: For retail motor vehicle dealers and wholesale dealers selling 25+ vehicles/year.
• $10,000 Bond: For motorcycle dealers, lessors, and wholesale dealers selling fewer than 25 vehicles/year.
• Pricing depends on credit score; options are provided in the course.

1. Live Scan Fingerprints & Resale Permit
2. Fingerprinting is required for all owners/partners. Instructions are included in the course.
3. Register with Secretary of State & Obtain FEIN
4. Register your business with the Secretary of State and get a Federal Employment Identification Number (FEIN). Instructions are provided in the course.
5. Location Inspection
6. Your location will be inspected to ensure it meets state requirements. Details on scheduling this are included in the course.
7. Pass DMV Exam
8. Complete a DMV exam to get your license. Sample questions are provided in the course.

California Used Dealer License Benefits:

• Access to dealer auctions nationwide.
• Ability to purchase vehicles online or in person.
• Option to apply for an Auction Access ID card for easier auction access.
• Training includes how to legally charge document fees to increase profits.

License Location Details:

• Residential: Only for wholesale dealers; check with local zoning officials for compliance.
• Commercial: Offers broader customer base and higher profit margins; typically involves higher visibility and drive-by traffic.

Bond Requirements:

• Retail Dealers: $50,000 bond.
• Wholesale/Other Dealers: $10,000 bond or $50,000 depending on sales volume.
• The course provides guidance on finding the best bond rates.

Additional Steps:

• Live Scan Fingerprints: All owners/partners must be fingerprinted.
• FEIN Registration: Obtain this from the IRS; instructions included in the course.

Final Steps:

• Location Inspection: Ensure compliance with state requirements.
• DMV Exam: Complete and pass the exam to receive your license.

For a comprehensive guide and to start your training, visit https://dealerslicense.com