You need eight things: a pre-licensing course certificate from a DMV-approved provider, a passing score on the DMV dealer exam, a business entity, a location your city and DMV approve, a surety bond, Live Scan fingerprints, a CDTFA seller's permit, and a complete DMV application packet with fees. Retail dealers also need a display area and a sign.
Educational information only. This article is not legal or financial advice.
In this article
The checklist
| # | What you need | Details | Source |
|---|---|---|---|
| 1 | Pre-licensing course certificate | From a DMV-approved dealer education provider | Vehicle Code §11704.5 |
| 2 | Passing DMV exam | 70% to pass, $16 per attempt, 3 attempts | 13 CCR §268.04, DMV |
| 3 | Business entity | Sole proprietor, partnership, corporation or LLC, plus a fictitious business name if you use a trade name | DMV application |
| 4 | Approved location | An office where you keep your records, with city or county property-use approval. Retail also needs a display area and a sign | DMV used dealer packet (OL 248) |
| 5 | Surety bond | $50,000, or $10,000 for wholesale-only dealers selling fewer than 25 vehicles a year | Vehicle Code §§11710, 11710.1 |
| 6 | Live Scan | Every owner on the application, using DMV form 8016. $32 DOJ fee plus the site's fee | DMV |
| 7 | Seller's permit | Free from CDTFA. Required for dealers and wholesalers | CDTFA |
| 8 | DMV application packet and fees | Application, personal history for each owner, bond, location documents. $175 application fee plus $1 | DMV |
Wholesale vs retail
| Wholesale only | Retail | |
|---|---|---|
| Display area | Not required | Required |
| Business sign | Not required | Required |
| Bond | $10,000 if under 25 vehicles a year | $50,000 |
| Can sell to | Other licensed dealers | The public and dealers |
More detail: wholesale dealer license · retail dealer license
In what order
- Take the course and pass the exam.
- Form the business and get your seller's permit.
- Get the location approved by your city in writing, then sign the lease.
- Buy the bond and do Live Scan.
- Submit the packet and pass DMV's inspection.
Frequently asked questions
Do wholesale dealers need a display lot or sign?
No. Wholesale-only dealers need an approved office but no display area or business sign.
How much is the dealer bond in California?
$50,000 for most dealers. Wholesale-only dealers selling fewer than 25 vehicles a year can use a $10,000 bond (Vehicle Code 11710.1).
Do dealers need continuing education in California?
Retail dealers complete continuing education to renew. Wholesalers dealing in fewer than 50 vehicles a year are exempt (Vehicle Code 11704.5(c)).
Related questions
- How long does it take to get a dealer license in California?
- How hard is it to get a dealer license in California?
- What is Live Scan, and what shows up on it?
- What does a dealer license let you do?
- Back to the California Dealer License FAQ
Next step: Printable dealer license checklist · Sample DMV application packet · Dealer license cost
Resources
- DMV: Vehicle Dealer License (Opens in new window)
- DMV used dealer application packet (OL 248 U) (PDF opens in new window)
- CDTFA: Permits & Licenses (Opens in new window)
Sources: Vehicle Code §11704.5 (Opens in new window) · 13 CCR §268.04 (Opens in new window) · Vehicle Code §11710.1 (Opens in new window) · DMV: Vehicle Dealer License (Opens in new window) (fees; updated April 1, 2026) · DMV: Live Scan (Opens in new window) · CDTFA Tax Guide for Motor Vehicle Dealers (Opens in new window). Verified 2026-10-16.
This article is for educational purposes only and is not legal, tax or financial advice. DMV makes every licensing decision.