Trusted Path to Your California Dealer License
These are the DMV’s required steps. Our DMV-approved course covers the mandatory dealer education and compliance training you’ll need to pass.
Take the DMV-Approved Pre-License Course
Complete the required California DMV-approved online pre-license course. You must submit this certificate when applying for your dealer license.
Decide Your Dealer License Type
Select the right path: Retail, Wholesale, or Broker. Each option has different bonding levels, office requirements, and privileges. Our California DMV Dealer Pre-License Course will each type.
Form Your Business Entity
Form an LLC, corporation, or DBA under your dealership’s name. This is the foundation for banking, insurance, and licensing.
Create a DMV Licensing Account
Set up your profile with the DMV’s Occupational Licensing system so you can file paperwork and track progress.
Complete Fingerprinting
Schedule a Live Scan so the DMV can process your background check.
Purchase a Dealer Bond & Insurance
Secure a surety bond and liability insurance. Bond amounts vary by license type (retail vs. wholesale).
Pass the Dealer Exam
Applicants must take and pass the DMV written test with a minimum passing score.
Open a Dedicated Bank Account
Open a checking account in the dealership’s name. The DMV expects your business finances to be separate from personal accounts.
Secure a Business Location
Your office must comply with DMV standards. Retail dealers need a display lot; wholesalers may qualify with an office setup only.
Obtain Business License
Apply for a business license with your city or county, and confirm that the property is zoned for vehicle sales.
Register for a Seller’s Permit
Apply with the California Department of Tax & Fee Administration (CDTFA) for a seller’s permit so you can legally collect and report sales tax.
File Your DMV Application & Prepare for Inspection
Submit all forms, fees, and supporting documents. The DMV will then inspect your business location before issuing your license.
