A California dealer license lets you buy and sell vehicles as a business. You can buy at dealer-only auctions, buy inventory for resale without paying sales tax, sell to other dealers (and, with a retail license, to the public), drive inventory on dealer plates, and issue temporary plates and DMV paperwork when you sell. Without a license, buying vehicles to resell for profit is illegal.
Educational information only. This article is not legal or financial advice.
In this article
- What you can do
- What it doesn't let you do
- Temporary plates and paperwork
- Frequently asked questions
What you can do
| With a dealer license you can | Wholesale only | Retail |
|---|---|---|
| Buy at dealer-only auctions (Manheim, ADESA, ACV, CarMax and others) | Yes | Yes |
| Buy for resale without sales tax, using a resale certificate | Yes | Yes |
| Sell to other licensed dealers and through dealer auctions | Yes | Yes |
| Sell to the public, including online | No | Yes |
| Use dealer plates on inventory | Yes | Yes |
| Issue temporary license plates and print the Report of Sale | When you sell | When you sell |
| Add an autobroker endorsement to broker sales for consumers | No | Yes |
What it doesn't let you do
- Sell new cars of a brand you don't have a franchise for. An independent dealer can't advertise or sell new vehicles of a make without that manufacturer's franchise (Vehicle Code §11713.1(f)).
- Use dealer plates for anything. Only owners and active managers can use them for any purpose. Employees can use them only for work, and customers only for test drives of up to 7 days (13 CCR §201.00). See Can you drive a car with dealer plates?
- Let others buy under your license. Auctions and DMV hold you responsible for every purchase made with your credentials.
Temporary plates and paperwork
Since January 1, 2019, California dealers must put temporary license plates on any vehicle they sell that doesn't already have plates. Those plates expire 90 days from the date of sale. Dealers also print the Report of Sale at the time of sale (DMV Industry News, citing Vehicle Code §§4456 and 5201).
Frequently asked questions
Can an independent dealer sell new cars?
Not new cars of a make it has no franchise for. Vehicle Code 11713.1(f) bars a dealer from advertising or selling new vehicles of a make without that franchise.
Can a dealer license holder buy at dealer-only auctions?
Yes. A licensed dealer can register with dealer-only auctions, usually through AuctionACCESS.
Who can drive with dealer plates?
Owners and active managers for any purpose, employees within the scope of their job, and prospective buyers on test drives of up to seven days (13 CCR 201.00).
Related questions
- What do you need to get a dealer license in California?
- How many cars can you sell without a dealer license?
- Do dealerships give you license plates in California?
- Back to the California Dealer License FAQ
Next step: License type comparison · California dealer auctions · Start the course
Resources
- DMV: Vehicle Dealer License (Opens in new window)
- 13 CCR §201.00, dealer plate use (Opens in new window)
Sources: DMV Vehicle Industry Registration Procedures Manual: Dealer (Opens in new window) (franchise rule) · 13 CCR §201.00 (Opens in new window) · DMV Industry News 18-03, temporary license plates (Opens in new window) · CDTFA Publication 103 (Opens in new window). Verified 2026-10-16.
This article is for educational purposes only and is not legal, tax or financial advice.