How to get a dealer license in California

DMV says you need a vehicle dealer license to sell new or used vehicles, and CVC 11700 makes it unlawful to act as a dealer without one. Under CVC 285, as summarized in DMV's VIP manual, a dealer is a person who, full or part time, for commission, money or other value, buys or offers for sale a vehicle subject to registration, or is in the business of selling, buying or taking in trade vehicles for resale or on consignment. People regularly employed by licensed dealers, and people who sell cars they bought and used as personal vehicles, are not dealers (CVC 286). No minimum number of sales is set.

• Retail new vehicle dealer: Dealers selling new vehicles under a franchise. They use the OL 248N packet and pay a $425 New Motor Vehicle Board fee per location.
• Wholesale-only dealer: Dealers who sell only to other licensed dealers. They need a business office but no display area, wall license or sign, and dealer education and the exam still apply.
• Autobroker's endorsement: Retail dealers who, for a fee, arrange purchases of vehicles they do not own. It is added to a dealer license for $100 and renewed for $75, and is not available on a wholesale-only license.
• Lessor-retailer license: Lessors or renters that sell their previously leased or rented vehicles to the public.
• Motorcycle or all-terrain vehicle dealer: Dealers selling motorcycles or ATVs. They file a $10,000 bond on form OL 25B instead of the $50,000 bond.

Surety bond. A $50,000 Dealer Surety Bond on form OL 25 (CVC 11710). Motorcycle and ATV dealers, motorcycle lessor-retailers, and wholesale-only dealers selling fewer than 25 vehicles a year may file a $10,000 bond on form OL 25B. A deposit agreement (OL 25E with STD 204) can replace a surety bond. A wholesale-only dealer without the $50,000 bond must file one before its 25th sale in a year, or the license is canceled (OL 56).

Insurance. The DMV dealer license page and the OL 248B checklist do not list a liability or garage insurance requirement for a dealer license.

Place of business. DMV requires an established place of business with an office that is not temporary, transitory or mobile (a trailer coach office is allowed if it is not inventory), occupied continuously or at regular periods, where all books and records are kept. Retail dealers need a display area at the main location that fits the vehicles they sell and is only for the dealer's display use (CVC 11601), and extra display areas are allowed within 1,000 feet. Signs must be permanent, on the outside of the office or display area, and readable (CVC 11709), and a temporary sign is allowed while a permanent one is on order. On form OL 21A you certify that the office and display area are on the same property and that the site meets city and county property use rules. A DMV inspector inspects the office, records, display area and sign, and you must send photos of the location.

Background check. Each person listed under ownership on form OL 12 must get Live Scan fingerprints using form DMV 8016 and complete the OL 29B Personal History Questionnaire. The Live Scan site collects a $32 DOJ criminal record check fee, and out-of-state applicants use fingerprint card ADM 1316 ($42). DMV cannot release a license until the applicant passes the DOJ background check.

Pre-license education. Required (6 hours). Approved courses and details.

1. Complete a DMV-approved dealer education program and get the original Certificate of Completion, which is valid for one year.
2. Pass the DMV dealer written exam with your local Occupational Licensing inspector ($16 per attempt).
3. Set up an office and display area with a permanent sign that meets city and county property use rules.
4. Get a CDTFA resale permit and a $50,000 dealer surety bond on form OL 25.
5. Get Live Scan fingerprints for each owner using form DMV 8016.
6. Submit the OL 248U packet (OL 12, OL 21A, OL 29B, OL 53 and ADM 9050) online or at an Occupational Licensing office, with photos and the $175 fee.
7. Schedule your location inspection online after DMV emails you, and pass it.

Official forms:

• Used Dealer Applications Forms Packet (OL 248U)
• Used Dealer or Dealer Wholesale Only Application Checklist (OL 248B)
• Application for Original Occupational License (OL 12)
• Original Application for Occupational License (in the OL 248U packet), OL 21A
• Personal History Questionnaire (in the OL 248U packet), OL 29B
• Dealer Surety Bond (OL 25)
• Surety Bond of Motorcycle Dealer, Motorcycle Lessor-Retailer, All-Terrain Vehicle Dealer, or Wholesale-Only Dealer (less than 25 vehicles per year), in the OL 248U packet (OL 25B)
• Request for Live Scan Service (DMV 8016)
• Renewal Application (OL 45)
• $50,000 Bond Exemption Application (wholesale-only dealers), OL 56

A retail dealer must have a display area at its main place of business. A wholesale-only dealer needs a business office but no display area or sign, and may sell only to other licensed dealers.

Dealer-only auctions require a dealer license to buy. AuctionACCESS (auctionaccess.com), accepted at over 400 auction marketplaces in the US and Canada, limits membership to licensed vehicle dealers and their authorized representatives.

Renew online or by mailing form OL 45, for a one-year or two-year term (two-year fees are double). Dealer renewal is $125 plus the $1 family support fee, and a late renewal adds a $175 penalty. Used and wholesale-only dealers must show at least 4 hours of continuing education every two years, and a wholesale-only dealer may ask for an exemption on form OL 257 where it applies. Renewals can be filed up to 90 days before expiration (OL 56), and DMV's 2009 dealer guide says renewals are not accepted more than 30 days after expiration (CVC 11717(d)).

This is general information, not legal advice. Rules and fees change, so confirm the details with the California Department of Motor Vehicles (DMV), Occupational Licensing before you apply. Last verified October 20, 2026.

Planning the business side too? Read how to start a car dealership. Used cars you offer for sale need an FTC Buyers Guide in the window. Selling your own car instead? See how to sell a car in California.