Who licenses vehicle dealers in California?

In California, vehicle dealers are licensed by the California Department of Motor Vehicles (CA DMV) Occupational Licensing Branch. You must obtain a vehicle dealer license before selling new or used vehicles for retail or wholesale.

Do I need dealer education to get a California used dealer license?

Most new California used retail and wholesale dealer applicants must complete a DMV‑approved dealer education program and pass the California Vehicle Dealer examination before applying for a license.

What are the basic requirements for a California used dealer license?

Common requirements include completing dealer education, passing the DMV dealer exam, securing a properly zoned business location with office and display area, obtaining a seller's permit from CDTFA, submitting Live Scan fingerprints, purchasing a dealer surety bond, providing photos and business documents, and filing the correct application forms with CA DMV.

California Used Vehicle Dealer License Requirements – 2025 Overview

California requires a vehicle dealer license from the DMV Occupational Licensing Branch if you sell vehicles for profit on a regular basis. This page focuses on the typical requirements for a used vehicle dealer (retail or wholesale) and summarizes the main steps in plain language.

Important: This is a general summary. Always confirm current forms, fees, and rules on the official California DMV website before filing an application.

1. Who regulates vehicle dealers in California?

California vehicle dealers are regulated by the California Department of Motor Vehicles (DMV), specifically the Occupational Licensing unit.

Regulator: California DMV – Occupational Licensing
Vehicle dealer license hub: CA DMV – Vehicle Dealer License
Occupational licensing overview: CA DMV – Occupational Licensing

2. California dealer license types (used‑focused)

California issues several categories of vehicle dealer licenses. From a used‑car standpoint, two of the most common are:

Used Vehicle Dealer (Retail) – sells used vehicles directly to the public.
Dealer Wholesale Only – sells vehicles only to other licensed dealers (not to retail consumers).

Some applicants also seek an Autobroker endorsement or other specialized licenses.

3. Pre‑licensing education, exam, and background checks

3.1 Dealer education

Most new used‑vehicle dealer applicants must complete a DMV‑approved dealer education course.
Approved education providers issue a certificate of completion that must be included with the application.

3.2 DMV dealer examination

After finishing the education course, applicants must pass the California Vehicle Dealer examination administered by DMV.
Evidence of passing the exam is a required part of the application package.

3.3 Live Scan fingerprints and background

Applicants submit Live Scan fingerprints for a criminal background check.
Any prior criminal or regulatory history must be disclosed and may require additional documentation.

4. Business location, office, and sign

California requires that your dealer location be a permanent place of business that meets DMV and local zoning standards. Typical expectations include:

A permanent business location with a physical address (no P.O. boxes).
A dedicated office where you can conduct dealer business and store records.
A display area large enough to show the vehicles you intend to sell.
A permanent sign with the dealer name, visible from the street, installed according to local rules.
Compliance with local zoning, land‑use, and occupancy requirements (you may need a zoning letter or use permit).
Photographs of the location, office, display area, and sign for the application.

5. Business entity, seller’s permit, bond, and insurance

5.1 Business entity and name

Form your legal entity (sole proprietor, partnership, LLC, or corporation).
File a Statement of Information with the California Secretary of State if you are an LLC or corporation.
File a Fictitious Business Name (DBA) if you operate under a trade name.

5.2 Seller’s permit (CDTFA)

Obtain a seller’s permit from the California Department of Tax and Fee Administration (CDTFA) so you can collect and remit sales tax.

5.3 Dealer surety bond

Purchase a California vehicle dealer surety bond in the amount required for your license type (bond amounts differ for retail vs. wholesale, so confirm current levels with DMV).
Make sure the bond names your dealership correctly and uses the required DMV form.

5.4 Insurance

Carry appropriate garage liability or commercial liability insurance as required by your operations and any contractual obligations.

6. Key forms and application steps

California used‑vehicle dealer applications are form‑heavy. While the exact list depends on your structure and license type, expect the package to include:

The main vehicle dealer license application form (for example, OL 248B for used/wholesale only applicants).
Dealer education certificate and exam results.
Live Scan fingerprint receipts.
Business entity documents, fictitious business name filings, and Statement of Information as applicable.
Seller’s permit from CDTFA.
Dealer surety bond and power of attorney form.
Photographs of your business location and sign.
Application and inspection fees as specified by DMV.

Applications are submitted to the appropriate DMV Occupational Licensing office. An inspector may visit your location before the license is issued.

7. After you are licensed: ongoing California compliance

Once your California dealer license is issued, you must:

Maintain your location, sign, bond, insurance, and records in compliance with DMV rules.
Renew your license and bond before expiration and keep your business information updated.
Follow California and federal rules on advertising, buyers guides, odometer disclosures, title work, and financing disclosures.
Cooperate with DMV inspections and audits when requested.