At a glance
- You can sell to
- Licensed dealers and dealer-only auctions
- Retail sales
- Not allowed
- Display lot
- Not needed in California, Florida, New York or Texas; still required in Alabama and Missouri
- Office
- Still required, from 8 by 8 feet for Michigan's Class W to 96 square feet in North Carolina
- Bond
- $50,000 in Texas and Missouri; none for Michigan's Class W; $10,000 in California below 25 sales a year
On this page
What is a wholesale dealer license?
A wholesale dealer license is a car dealer license limited to trade sales. You buy from and sell to other licensed dealers, and you can buy and sell at dealer-only auctions. What you can't do is sell a car to a retail customer. States word it a little differently:
- Texas Wholesale GDN: sell or exchange vehicles only with other licensed dealers.
- Florida Wholesale Motor Vehicle Dealer (VW): deal only at wholesale, with other licensed dealers or through auctions.
- Michigan Class W: buy and sell used vehicles only from and to licensed dealers.
- New York Wholesale Motor Vehicle Dealer: buy and sell only at wholesale, with no retail sales.
- Missouri wholesale dealer: sell only to franchised or used dealers, or through auctions limited to dealers.
A wholesale car dealer license suits auction buyers who supply other dealers, and people who want to start trading cars before they're ready to run a retail lot.
Wholesale vs retail dealer license: what changes?
| Rule | Wholesale license | Retail license |
|---|---|---|
| Who you can sell to | Other licensed dealers and dealer-only auctions | Anyone, including the public |
| Display lot | Not required in California, Florida, New York or Texas | Expected: room for 5 vehicles in Texas, 3 in New York |
| Sign | Not required for California wholesale-only dealers | Required, such as 6-inch letters in Texas |
| Open hours in Texas | At least 2 weekdays, 2 hours in a row | At least 4 days a week, 4 hours in a row, never by appointment only |
| Dealer plates in Florida | Not available with a VW license | Available |
| Autobroker add-on in California | Not available on a wholesale-only license | Available for $100 |
From each state's official dealer pages and statutes, checked October 2026.
Wholesale dealer license rules by state
The rules vary more than the name suggests. Here's how ten states handle a wholesale car dealer license:
| State | License | Display lot | Other requirements |
|---|---|---|---|
| California | Wholesale-only dealer | No display area or sign | Business office; dealer education and exam; $50,000 bond, or $10,000 if you sell fewer than 25 vehicles a year |
| Florida | Wholesale Motor Vehicle Dealer (VW) | No | Office with records open for inspection; no dealer plates |
| Texas | Wholesale GDN | No | Qualifying office; open at least 2 weekdays; $50,000 bond |
| New York | Wholesale Motor Vehicle Dealer | No | A New York place of business that passes inspection; $20,000 bond if you sold 50 or fewer vehicles last year |
| Michigan | Class W wholesaler | No vehicles on display | Office at least 8 by 8 feet; no dealer bond; buy or sell at least 24 vehicles a year to keep it |
| North Carolina | Wholesale Dealer License | No | 96-square-foot office where records are kept; bond |
| Missouri | Wholesale motor vehicle dealer | Yes | Permanently enclosed building; $50,000 bond or letter of credit |
| Alabama | Motor vehicle wholesaler (master dealer license) | Yes, room for at least one vehicle | Sign and posted hours; $50,000 bond |
| Ohio | No separate license; the used dealer license covers wholesale | Yes, 3,500 square feet | Office of at least 180 square feet |
| Georgia | No separate license; wholesalers are licensed as used dealers | No car lot required | Established place of business in a permanent building |
Bonds can change with volume: New York's rises to $100,000 above 50 sales a year. Every state's full requirements are linked from the dealer license guide.
How to get a wholesale dealer license
Check that your state offers it
Ohio and Georgia don't split wholesale from retail, so there you apply for the regular used dealer license. Elsewhere, choose the wholesale class on the application.
Find an office that qualifies
No lot doesn't mean no office. Texas requires at least 100 square feet with a 7-foot ceiling, a desk, two chairs, internet and a phone listed in the business name. Michigan's Class W office can be as small as 8 by 8 feet, and North Carolina's needs 96 square feet.
Meet the education rules
California's wholesale-only applicants still complete the dealer education program and pass the written exam. To renew, California wholesale dealers need 4 hours of continuing education every two years unless an exemption applies.
Post the bond and insurance
Texas and Missouri require $50,000. California lets a wholesale-only dealer start with a $10,000 bond but requires the $50,000 bond before its 25th sale in a year, and Michigan's Class W needs no dealer bond. Florida wholesalers can meet the insurance rule with general liability plus a business auto policy.
Apply and pass the background check
File with your state agency and get fingerprinted where it's required. Michigan, for example, fingerprints every owner, partner, officer and director through Livescan.
Set up auction access
Once you're licensed, join AuctionACCESS and register with each auction you'll use. Our guide to dealer licenses for car auctions walks through it.
Can you get a wholesale dealer license from home?
Usually not with a plain home office. Texas bars dealer offices in a residence, apartment, hotel, motel or virtual office, and Alabama rejects shared, virtual and rotating offices for every master dealer license, a wholesaler's included. Georgia allows more: a separate office building detached from your home can qualify where local rules allow, with its own business phone line and your licenses on display.
Check zoning before you spend money on the space. New York, for example, still requires a wholesaler's place of business to pass an on-site inspection.
Should you start with a wholesale or a retail license?
Go wholesale if you want to trade with dealers and auctions on low overhead. Go retail if you want to sell to the public and set the price for the end buyer.
Either way, watch the volume rules. Michigan's Class W requires at least 24 vehicles a year to keep the license, Missouri requires at least 8 sales in each full calendar year to renew, and in Texas wholesale sales count toward the five sales a year a dealer needs to avoid cancellation.
If you add retail later, you'll need a lot that meets your state's rules, a Buyers Guide on each used car and listing photos. CarShots handles the photos from your phone, with the same backdrop on every car. For the rest of the plan, read how to start a car dealership.
This is general information, not legal advice. Confirm the license class and its rules with your state agency before you apply.