If you’re unsure of whether your situation requires a license, contact the DMV. CA has been cracking down on curbstoners in the last few years. [2] X Research source
A wholesale dealer is able to buy cars directly from other dealer and sell them to other dealers. A wholesale dealer may also export cars to other countries. However, a wholesale dealer may not sell directly to the public. A wholesale dealer needs to have an office but doesn’t need to have a sign or a space for displaying vehicles. [4] X Research source A retail dealer can buy cars directly from dealers and sell them to other dealers and to the public. A retail dealer may also export cars to other countries. A retail detail needs an office, a sign, and a space for displaying vehicles. [5] X Research source
As a wholesaler dealer, having an auto broker endorsement is the only way to sell directly to the public. [7] X Research source No additional paperwork is required to get an auto-broker endorsement. You just have a check a box on your licensing application. [8] X Research source
A list of Occupational Licensing Inspectors can be found at https://www. dmv. ca. gov/portal/dmv/?1dmy&urile=wcm:path:/dmv_content_en/dmv/fo/inspector_office. [9] X Research source
Be completely honest in your answers. CA will do an independent review of your background. If you leave out any information you may be barred from receiving a license.
There many options for registering your business. You can register an LLC, a corporation, a partnership, or any number of other business entities. It’s best to talk to a lawyer before deciding what kind of entity you want your business to be. The cost of your business license will vary by city, what kind of entity you set up, and your annual revenue. [11] X Research source
A surety bond ensures that you will meet your obligations as a car dealer. The cost of surety bonds depends on your credit, but you can expect to pay around $1,000 to $15,000 per year. [13] X Research source
You don’t need a sign or space for a car to be a wholesale dealer. [15] X Research source
Various private organizations offer the class. Check the CA DMV website for listings. The cost is around $125 depending which organization you choose. [25] X Research source
Have all of the paperwork for your business, your surety bond, and your financial information with you when you fill out the application.
Keep copies of everything as you go to make the final application process go more smoothly.
It will take several weeks to get a decision. Once your application is approved you can begin selling cars. [27] X Research source
