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Create a Business Plan

• We have a five step program to help you get your dealer’s license in California.  You will always know where you are at, what is behind you and what lies ahead.  Without a plan your journey in this industry will be like a boat with out a rudder- aimlessly going nowhere.  Though brief, make sure that your business plan will cover all the bases—from the executive summary down to customer acquisition.

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You will need a DMV & City Approved Dealer Office Space at the very beginning 

• If you are serious about moving forward with getting your California Dealer License, than you will need a DMV and City approved Dealer Office for your Licensed to be anchored at.  Although Dealerships that have Online Sales and Offsite offerings such as Carvana and CarMax have anchored locations for there License as required by Vehicle Code VC §320.

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We have approved Dealer Office Space for Rent for Auto Sales with Auto Dealer Office 

• Your LLC or Corporate Filing - Dealer Address

• Your Fictitious Name Filing - Dealer Address

• Seller Permit from the CDFTA - Dealer Address

• IRS EIN - Dealer Address

• DMV Dealer Application - Cross matches to the Ca. Secretary of State - Dealer Address

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Take a California DMV-Approved Dealer Training Class

• California requires you to take a “Pre-Licensing Class” from a DMV approved training company. This training requirement applies to all California Dealer license types. We recommend taking this training first as you will gain an understanding of what it means to be a dealer and each step required to get your License. After completing the course, you will receive a DMV Certificate of Completion – required when you apply for your dealer license. 

 
Decide on a Dealer License Type

• ​California has two types of Dealer licenses for selling pre-owned vehicle; Retail and Wholesale. A Retail Dealer License permits you to sell vehicles to the public, other Dealers or at auctions. Retail Dealers are required to have an approved office and “car lot” where they are allowed to display vehicles for sale. A Wholesale Dealer License permits you to sell to other Dealers or auction but not to the public, in California. The DMV allows Wholesale Dealers to operate their business from a residence and are not required to have a commercial office or “car lot”. Some Wholesale Dealers work in partnership with a Retail Dealer who has already met the State’s requirements. Essentially you would be working as a Dealer under a Dealer to sell through to consumers. Both Retail and Wholesale Dealers may buy vehicles from any source including Dealer-only auctions.

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Decide – Corporation or Sole Proprietorship?  

• You can apply for your Dealer License as a Corporation (S-Corp or LLC) or as a Sole Proprietorship (a private individual). If you decide to set up your Dealership as a Corporation, you need to supply the DMV with a copy of your Articles of Incorporation and other documents showing Officers that will be active in the operation of your Dealership.

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Get a Seller’s Permit from the CDTFA

• Both Retail and Wholesale California Auto Dealers must have a Sellers Permit from CDTFA. To obtain a Sellers Permit, you can walk in your local CDTFA office (California Department of Tax & Fee Administration) to obtain a Sellers permit, which allows you to collect taxes. You can learn more and apply online 

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