What are the requirements for a car dealer's license?

For example, here is more information on the requirements California.


*An applicant must take a six hour preparation class to become a licensed car dealer. There are 2 main types of dealers, retail or wholesale. Retail Dealers have more restrictions as liability which required more dealer insurance as well as a larger dealer bond, but retail dealer are the only dealers allowed to sell to the public. Wholesale dealers may only sell to other dealers.


*The applicant must take the class and pass a 40 question test, then submit an application and a bond, then submit photos and pass an on-site inspection. Upon review the DMV inspector will review the dealer's application and then approve the tempory license. Often the largest struggle for those attempting to start a retail dealership is the zoning for the city or county to allow a dealership at the choosen location. Make sure that the location you choose is zoned properly and/or will be an acceptable location for a retail dealership. Rarely do wholesale dealerships struggle getting proper zoning permission from the government.


*Once a would be dealer passes the test they must prepare for DMV approval from the inspector. To prepare the following tasks must be done. The applicant must produce 11 photos 1)building 2)outside sign 3)display area 4)office 5)business license 6)resale permit 7)telephone 8)inside signs 9)locked cabinet 10)checkbook 11)dmv dealer book


*Then the applicant must submit: zoning approval letter, OL902 certificate of class completion, TSM888 business license resale permit ficticious name statement telephone listing livescan fingerprint card personal history questionaire completed dmv dealer application bond in the name of the owner / dealership.

Is there a way to obtain a dealer license in California using a home address if the cars never come to that addresss?
I have not heard or met anyone that has a dealers license using a home address. I believe to obtain a dealers license you need to be a "store" where you have inventoty (in this case cars). As a dealer all retail transactions need to take place in or at your store. So having your dealers license address to be your home address does not seem plausible.


How can you get a dealer license for used cars?
go to your states Dept of Motor Vehicles and look up dealer license info. There will be an option to get licensed for used cars only.

How do you sell a car when the bank has the title?
Contact the bank. You can't sell it without the title.

How do you obtain a car dealer's license?
try your local DMV

How many cars can you sell with out getting a dealer license?
check with your local DMV agency. It varies from state to state.

Who is responsible for a smog check on a used car?
The new owner is responsible for the smog. However most dealerships pre smog their used cars and pass the cost onto the new owner.

Section 24007 (b)(2) of the Vehicle Code states it is the responsibility of the seller to provide a valid smog certificate at the time of delivery of the vehicle.

Do you need to have good credit to obtain a dealer license?
States and municipalities establish business licensing laws. Generally the person applying for a business license will be subjected to a criminal and credit background check and will be required to post a security bond.
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