* Be at least 18 years old.
* Have a good moral character.
* Be financially responsible.
* Have a clean driving record.
* Have a physical location for your business.
* Have a surety bond.
* Apply for a California Dealer License
1. Online Application. Submit your application in the Dealer Licensing Online Services (DLOS) system or use a paper Dealer Application (REG 256), available at the DMV.
2. Processing Fee. Pay a $15.00 processing fee using a credit card or e-check via the online system or submit the fee with your paper application.
3. Dealership Inspection. Schedule an inspection by the DMV of the dealership premises.
4. Business Structure and Ownership. Submit copies of all corporate documents, partnership agreements or Articles of Organization based on the type of business structure you chose.
5. Complete Required Courses and Exams. You will need to take 12 courses totaling 60 hours for a complete dealer application to conduct all types of business. You will also need to take and pass the California Used Vehicle Dealer Law and Regulations Exam, which is offered via a third party vendor.
6. Obtain Surety Bonds You will need four types of surety bonds including:
* Motor Vehicle Dealer Bond
* Vehicle Salesperson Bond
* Business Services or Motor Vehicle Services Bond
* Surety Bond for Vehicle Transporters
7. Pay Required Licensing Fee. There is a base annual licensing fee of $250 and then additional charges ranging from $200 to $950 based on the gross annual sales volume of the dealership
8. Get Your License. Once your application has been approved, the DMV will mail your license certificate.
