California Dealer License — the bond, the course, the test and the fees.
California licenses dealers through the DMV's Occupational Licensing branch, and its Vehicle Code sets no minimum number of sales: if you are in the business of selling cars, you are a dealer. Used and wholesale dealers take a 4-hour course and a DMV written test, file a $50,000 bond, and pass a site inspection. Here is the whole process, with the DMV's own fees.
California Dealers Must Check Title History
The DMV requires an NMVTIS report on every used car a dealer offers or displays. Enter a VIN for a free preview of title brands and odometer records.
Free preview · No sign-up · No owner or personal data
Quick Answer
- How do you get a dealer license in California?
- Used and wholesale dealers complete a 4-hour education program, pass a DMV written test, then file the application packet with Live Scan fingerprints, a $50,000 bond, a resale permit and photos of the location. The DMV then schedules an inspection of the business.
- How much does a California dealer license cost?
- DMV fees start at $175 for the application, $1 family support fee, $16 for the test and $92 for each dealer plate, so $284 with one plate. New-car dealers add $425 per location. The bond premium and the course are extra.
- How many cars can you sell in California without a dealer license?
- California sets no number. Vehicle Code § 285 makes anyone engaged in the business of selling vehicles, or buying them for resale, a dealer. You can sell cars you used for personal or business purposes, as long as it is not to avoid the law.
Five steps to a California dealer license
The DMV checks the paperwork, then the place. Both have to pass before you get plates.
- 1Complete the courseAt least 4 hours, from a DMV-approved provider.
- 2Pass the DMV testUp to 3 attempts, $16 and a week's wait between them.
- 3File the bond$50,000, from an admitted surety insurer.
- 4Submit the packetApplication forms, Live Scan, resale permit, photos and fees.
- 5Pass the inspectionOffice, records, display area and signs.
Who Counts as a Dealer in California
Vehicle Code § 285 defines a dealer two ways: anyone who sells, buys or negotiates vehicle sales for a commission or other payment, and anyone engaged wholly or in part in the business of selling vehicles or buying them for resale, whether or not they own the vehicles. There is no minimum number of sales.
Section 286 lists who is not a dealer: insurers, banks and finance companies selling vehicles to save themselves from loss; salespeople employed by licensed dealers; people disposing of vehicles they used in good faith for personal or business use; licensed dismantlers selling vehicles reported for dismantling; and certain charities selling donated cars.
The Course and the DMV Test
Section 11704.5 requires every applicant for a used-vehicle dealer license, retail or wholesale, to pass a written examination before the license is issued. Before the first attempt you must complete an educational program of at least 4 hours covering finance, truth in lending, sales tax, equipment, advertising, odometers, registration, offsite sales and unlawful dealer practices.
The DMV allows 3 attempts. After a failure you pay $16 and wait a week; after the third, you repeat the course and start again. Once licensed, you complete another 4 hours every 2 years to renew, unless a managerial employee does it, or you are a wholesale-only dealer handling fewer than 50 vehicles a year.
The test covers
- Equipment: Division 12 of the Vehicle Code.
- Advertising and odometers: what a dealer may say and must disclose.
- Registration: licensing, branches and offsite sales.
- Forms: handling and completing DMV paperwork.
What Goes in the Application
From the DMV's dealer license page, read on 16 October 2026.
The forms packet
OL 248N for new-vehicle dealers, OL 248U for used and wholesale-only dealers.
Live Scan fingerprints
For each person listed under ownership on the original application.
Course and test
The education certificate and proof of passing the DMV test (used and wholesale).
The bond
$50,000, conditioned against fraud that costs a buyer, seller or lender money.
Resale permit
From the California Department of Tax and Fee Administration, to collect sales tax.
Location photos
Then an inspection the DMV schedules by email once the paperwork is processed.
California Dealer License Fees
The DMV's published fees, read on 16 October 2026. County plate fees can apply on top.
| Fee | Amount |
|---|---|
| Application (non-refundable) | $175 |
| Family support program | $1 |
| Examination | $16 |
| Each dealer plate | $92 |
| Each branch location | $70 |
| New Motor Vehicle Board, per location (new-vehicle dealers) | $425 |
| Autobroker endorsement | $100 |
| Renewal | $125 |
A used-car dealer with one plate starts at $284 in DMV fees, before the bond premium and the course.
The Fees and Steps at a Glance
The DMV fee schedule and the order of the steps, on one page.
The bond and the course are bought from third parties, so their prices are not on it.
The Site Inspection
After processing the application, the DMV emails you to book an inspection. The inspector looks at the main office, which must not be temporary, transitory or mobile, though a trailer office is allowed if it is not part of the inventory; at your books and records; at the display area, which must be big enough for the vehicles you are licensed to sell and used only for display; and at the signs, which must be permanent and readable.
Wholesale-only dealers skip the display area and sign inspection. Extra display areas within 1,000 feet of a licensed location need no separate license but must meet the sign rules.
Pull the History on Every Used Car
California dealers need an NMVTIS report on each used car they display. Enter a VIN for a free preview.
The NMVTIS Rule for California Dealers
The DMV's dealer page states it plainly: new and used vehicle dealers must obtain a National Motor Vehicle Title Information System report for any used vehicle offered or displayed for sale, and must display a warning on the vehicle when the report shows the state has branded the title.
That is a report per car, every car. Our full report includes NMVTIS junk and salvage records alongside title brands, insurance total-loss records, odometer readings, and auction records with the damage the auction recorded and its photos.
Related Checks and Guides
Other states, dealer auctions and the forms dealers use.
Where These Facts Come From
From the California DMV and the Vehicle Code, read on 16 October 2026. Fees and forms change; confirm with the DMV before you apply.
CarCheckerVIN is not affiliated with the California DMV or any surety or school. This page is general information, not legal advice.
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المعاينة المجانية تُظهر علامات سند الملكية وحالة السرقة والاستدعاءات المفتوحة خلال ثوانٍ، وتُشير إلى وجود سجلات حوادث أو عدّاد من عدمه. التقرير الكامل بـ 14.99 دولاراً — دفعة واحدة، بلا اشتراك.
California Dealer License — Frequently Asked Questions
What California applicants ask most.
How much is the California dealer bond?+
$50,000 under Vehicle Code § 11710, or $10,000 for dealers who sell only motorcycles or ATVs. It must stay at full value or the license is suspended.
How long is the California dealer course?+
At least 4 hours before your first test attempt, and another 4 hours every 2 years to renew.
How many times can I take the dealer test?+
3 times. Each retake costs $16 after a one-week wait; after the third failure you repeat the course.
Do wholesale-only dealers need a lot in California?+
The DMV does not inspect a wholesale-only dealer's display area or signs, but the office must still be permanent. Wholesale-only dealers handling fewer than 50 vehicles a year are also exempt from the renewal course.
How long does California take to approve a dealer license?+
The Vehicle Code gives the DMV 120 days to investigate an application once it is received with the fee. The site inspection follows.
Do California dealers have to run vehicle history reports?+
Yes. The DMV requires an NMVTIS report on every used vehicle offered or displayed, and a warning on the vehicle when the title is branded.
Check Any Used Car by VIN
Enter any 17-character VIN for a free preview. The full report lists title brands, NMVTIS junk and salvage records, insurance total-loss records, odometer readings, and auction records with the damage the auction recorded and its photos.
CarCheckerVIN is an independent vehicle-history service and is not affiliated with the California DMV. Requirements are summarized from public sources and are not legal advice. Records in our reports reflect what was reported to our data providers. Our reports do not include police or repair-shop accident entries.
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