It's not hard if you're organized. The DMV dealer exam needs a score of 70% to pass, and most students who finish a DMV-approved course pass on the first try. The parts that take real effort are finding a location your city and DMV will approve, and submitting a complete application packet.
Educational information only. This article is not legal or financial advice.
In this article
What each step asks of you
| Step | How hard | What trips people up |
|---|---|---|
| Pre-licensing course | Easy: one day, online or in person | Nothing, if you take notes for the exam |
| DMV dealer exam | Moderate: 70% to pass | Not studying Vehicle Code basics, forms and disclosure rules |
| Business setup | Easy | Choosing an entity before talking to an accountant |
| Location | Hardest | Signing a lease before the city confirms zoning |
| Bond, Live Scan, seller's permit | Easy | Waiting until the last week to order them |
| Application packet | Moderate | Missing signatures, mismatched names and addresses |
| DMV inspection | Moderate | Missing sign (retail), no secure records storage |
The exam
- You need 70% to pass (California Code of Regulations, Title 13, §268.04).
- You get 3 attempts. Each retake costs $16, and you must wait at least one week.
- After a third failure you must take the dealer education course again.
From experience (Garrett Eddings, professional opinion): Most of my students pass the DMV exam on the first try. The test isn't what holds people up. The location and the paperwork are.
What makes it easier
- Confirm zoning in writing with your city planning department before you sign anything.
- Choose wholesale or retail early. Wholesale needs no display lot or sign, so the location is simpler. See wholesale vs retail.
- Use a checklist for the packet: dealer license checklist and inspection readiness checklist.
- Practice for the exam: dealer exam practice test and study guide.
Frequently asked questions
What score do you need to pass the California dealer exam?
70%. You get three attempts; each retake costs $16 and requires waiting at least one week. After a third failure you must retake the dealer education course.
How many times can you take the California dealer exam?
You get three attempts. Each retake costs $16, and you wait at least a week between attempts.
Do most people pass the dealer exam on the first try?
In CDA's experience, most students who finish the pre-licensing course pass on the first try. The passing score is 70%.
Related questions
- How long does it take to get a dealer license in California?
- What is Live Scan, and what shows up on it?
- How many cars can you sell in California without a dealer license?
- How much does a dealer license cost?
- Back to the California Dealer License FAQ
Next step: How to get a California dealer license, step by step · Start the 6-hour course for $99
Resources
- DMV: Vehicle Dealer License (Opens in new window)
- DMV-approved dealer education providers (Opens in new window)
Sources: 13 CCR §268.04, Dealer Examination Requirements (Opens in new window) · DMV: Vehicle Dealer License (Opens in new window) (exam attempts and retest fee; page updated April 1, 2026). Verified 2026-10-16.
This article is for educational purposes only and is not legal, tax or financial advice. DMV makes every licensing decision. The instructor note reflects one instructor's professional experience.