How to Become a Car Dealer in California
Decide if you need a license., Decide if you want to be a wholesale dealer or a retail dealer., Decide if you want to add an auto broker endorsement to your license.
Step-by-Step Guide
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Step 1: Decide if you need a license.
If you’re just selling your own used car you don’t need a license.
However, if you’re going to be buying and selling cars for the purpose of making a profit, you’ll need a license from the DMV.
Selling cars for profit without a license in CA is illegal.
This activity is called “curbstoning” and can involved hefty fines if you’re caught.If you’re unsure of whether your situation requires a license, contact the DMV.
CA has been cracking down on curbstoners in the last few years. -
Step 2: Decide if you want to be a wholesale dealer or a retail dealer.
The main distinctions are whether you will be selling cars directly to the public and whether you need to have retail space.
The same paperwork is required for obtaining a wholesale dealer license or a retail dealer license.A wholesale dealer is able to buy cars directly from other dealer and sell them to other dealers.
A wholesale dealer may also export cars to other countries.
However, a wholesale dealer may not sell directly to the public.
A wholesale dealer needs to have an office but doesn’t need to have a sign or a space for displaying vehicles.
A retail dealer can buy cars directly from dealers and sell them to other dealers and to the public.
A retail dealer may also export cars to other countries.
A retail detail needs an office, a sign, and a space for displaying vehicles. , An auto-broker endorsement allows you act as a middleman between buyers and sellers.
You can add an auto-broker endorsement to either a wholesale dealer license or a retail dealer license.As a wholesaler dealer, having an auto broker endorsement is the only way to sell directly to the public.No additional paperwork is required to get an auto-broker endorsement.
You just have a check a box on your licensing application. -
Step 3: Decide if you want to add an auto broker endorsement to your license.
Detailed Guide
If you’re just selling your own used car you don’t need a license.
However, if you’re going to be buying and selling cars for the purpose of making a profit, you’ll need a license from the DMV.
Selling cars for profit without a license in CA is illegal.
This activity is called “curbstoning” and can involved hefty fines if you’re caught.If you’re unsure of whether your situation requires a license, contact the DMV.
CA has been cracking down on curbstoners in the last few years.
The main distinctions are whether you will be selling cars directly to the public and whether you need to have retail space.
The same paperwork is required for obtaining a wholesale dealer license or a retail dealer license.A wholesale dealer is able to buy cars directly from other dealer and sell them to other dealers.
A wholesale dealer may also export cars to other countries.
However, a wholesale dealer may not sell directly to the public.
A wholesale dealer needs to have an office but doesn’t need to have a sign or a space for displaying vehicles.
A retail dealer can buy cars directly from dealers and sell them to other dealers and to the public.
A retail dealer may also export cars to other countries.
A retail detail needs an office, a sign, and a space for displaying vehicles. , An auto-broker endorsement allows you act as a middleman between buyers and sellers.
You can add an auto-broker endorsement to either a wholesale dealer license or a retail dealer license.As a wholesaler dealer, having an auto broker endorsement is the only way to sell directly to the public.No additional paperwork is required to get an auto-broker endorsement.
You just have a check a box on your licensing application.
About the Author
Karen Reyes
A seasoned expert in government, Karen Reyes combines 1 years of experience with a passion for teaching. Karen's guides are known for their clarity and practical value.
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