California Vehicle Dealer's License

Getting your license and starting your own dealership is an easy, straightforward process.

This license grants you the right to [formally] sell automobiles/cars in California. Whether you decide to sell new or used vehicles, and whether you go for a retail or wholesale license, this page provides you the steps to acquire it.

Process:

1. Find a Location - It needs to have 1 office, 1 filing cabinet, & 2 parking spots

2. Open a Business - Choose between an LLC, Corporation, Sole Proprietorship, or Partnership.

3. File for a City Business License - Check out your city's online website.

4. File for a Fictitious Business Name (FBN) - Go to your county's clerk-recorder office.

5. File for a State Resale Permit - referred to as "Seller's Permit", "Resale License", or "Resellers Permit".

6. Business Bank Account - Call your local branch, ask what documents they require, and go in-person.

7. Acquire a Bond - A longer-term bond will be cheaper, and can be amortized on taxes across the additional years.

8. Complete Live Scan - DMV-required fingerprints & criminal record check.

9. Take the DMV Dealer Exam - Call & Schedule with Occupational Licensing.

10. Complete, Prepare, & Submit Application Forms - New Dealer & Used Dealer

11. Pass Inspection

• (Optional) Complete Dealer Education Program - Only necessary if selling used cars

Starting + One-Time Cost:

• Business (Corp/LLC fees) - $1,000

• Application Fees - $500

• Bond - $500

• City License - $45

• Live Scan Fingerprinting - $32

• Fictitious Business Name (FBN) - $23

Total Starting: $2,100

Base Yearly Operating Costs:

• Location - $15,000

• Business Fees - $1,000

• Dealer's License Renewal - $400

• Bond - $500

• Tax Assistance - $400

• City License - $45

  • (Optional) Auction Platforms - $500

  • (Optional) Continuing Dealer Education Program - $24.50

  • (Optional) Individual Inventory Insurance - $700

Total Yearly: $17,345

I suggest considering a handful of things. First, talk to a friend with a shop or business partner about splitting the office or warehouse lease. Second, do research on what types of cars you intend to sell and what their market is. Third, contemplate the insurance if presenting a formal showroom or driving the vehicles (using dealer plates) on public roads. Lastly, acquire only one dealer plate and disregard auto broker endorsement to save yourself on application fees.

Feel free to contact MyCar if you have any questions. Our team is willing to help.