A California auto dealer license is required for individuals selling new or used vehicles for profit. The California Department of Motor Vehicles (DMV) oversees licensing for all types of auto dealers in the state.

Continue reading for step-by-step instructions, application costs and bonding information.

Who Needs a California Dealer License?

California Vehicle Code Division 5 Chapter 4 Section 11710 specifies that those planning to operate as wholesale dealers, manufacturers, remanufacturers, transporters, or distributors of motor vehicles are required to obtain a dealer license.

The license application process ensures that individuals meet all state requirements for their specific category.

How to Get an Auto Dealer License in California

Simply follow the steps below to apply for your California dealer license and bond.

Step 1: Determine which dealer license you need

The California DMV issues four types of vehicle dealer licenses:

New Auto Dealer License: Enables sales of both new and used vehicles to the public, licensed motor vehicle dealers, and through auctions.
Used Auto Dealer License: Permits sales exclusively of used cars and trucks to the public and licensed dealers.
Wholesale Dealer License: Allows sales solely to licensed dealers and through auctions without the ability to sell directly to the public.
Autobroker’s Endorsement: Authorizes a licensed dealer to offer services such as arranging, negotiating and facilitating vehicle purchases in exchange for compensation.

Step 2: Complete your dealer application packet

If you plan to sell new vehicles, complete the Dealer Application Checklist. If you're applying to sell used vehicles, complete the Used Dealer Application Packet

The packets will include these documents:

Application For Original Occupational License (Part C)
Original Application for Occupational License
Deposit Agreement and Assignment
Addendum to the Deposit Agreement and Assignment, OL 25E
Application for Occupational License Business Licensing Unit
Authorization to Release Financial Information
Appointment of Director as Agent for Service of Process form

Step 3: Purchase a dealer surety bond

By filing a California auto dealer bond, you commit to operating your dealership in compliance with state regulations. New and used dealers need a $50,000 surety bond while motorcycle, lessor-retailer, all-terrain, and wholesale dealers only need $10,000 in coverage.

Apply for your California auto dealer bond online 24/7 to get a free quote. After you purchase, sign and file the digital bond form with the California DMV.

Step 4: Submit fingerprints and background check

Complete the Live Scan fingerprint process, and submit a Request for Live Scan Clearance.

Step 5: Submit a Statement of Information form

If you are an LLC, corporation or limited liability partnership-owned business, you'll need to request a Statement of Information form from the Secretary of State (SoS). Complete and file these forms with the California SoS.

Step 6: Complete education and exam, if applicable

Used and wholesale vehicle dealers in California must complete the Dealer Education Program and pass the exam. You get three attempts to pass the test, otherwise you’ll need to retake the program.

Step 7: Register for a CDTFA Resale Permit

Register online with the California Department of Tax and Fee Administration (CDTFA) to get your resale permit. This permit allows you to collect sales tax on used car transactions. You’ll need to include a copy with your license application.

Step 8: Submit photographs of your business

Next, submit clear, dated and signed photographs of your dealership office, signage and display areas. Attach these photos to a sheet of paper, labeled and numbered accordingly. See the Occupational Licensing photography guidelines for more details.

Step 9: Apply and pay fees

After gathering the required documents, submit your documents and fees at your local Occupational Licensing office or online through your MyDMV account.

Step 10: Schedule an Occupational Licensing inspection

After processing your application, you’ll receive an email with instructions to schedule an inspection. An Occupational Licensing inspector will visit your business location to verify compliance with California DMV standards.

After your inspection and application are approved, you’ll receive your official California dealer license!

How Much Does a California Auto Dealer License Cost?

Obtaining a California dealer license involves several fees:

$175 licensing fee plus $70 per branch
$90 per optional dealer plate ($92 for motorcycles)
$300 New Motor Vehicle Board Fee
$100 Auto Broker Endorsement Fee
$42 fingerprint card fee (out-of-state applicants only)
$1 Family Support Program Fee

You’ll also need to purchase a California dealer bond. Pricing varies depending on the type of license as well as the your credit score:

For the $10,000 Motorcycle, Lessor-Retailer, All-Terrain, or Wholesale Vehicle Dealer Bond, annual premiums start at $100.
For the $50,000 Motor Vehicle Dealer Bond, annual premiums start at $500.

Do I Need to Renew My California Dealer License?

California dealer licenses expire every two years. To complete your renewal, submit the following items:

Proof of continuing education (every two years)
Renewal Application (OL 45)
$50,000 Bond Exemption Application (OL 56) (wholesale-only dealers)
Report Or Replace Lost, Stolen, Or Surrendered Occupational License Special Plates (OL 247) (if not renewing all plates)
Continuing Education Exemption Application (OL 257) (wholesale-only dealers)
$125 renewal fee

Submit your application and fees online or by mail to the address provided on form OL 45.

How to Get a California Auto Dealer License