California doesn't issue a separate "auction license." To buy at dealer-only auctions like Manheim, ADESA, ACV and CarMax, you need a California DMV dealer license, either wholesale or retail. Once you're licensed, you join AuctionACCESS, the credentialing service most dealer auctions use ($103 a year per person; no charge for the dealership), and then register with each auction using your AuctionACCESS ID. Licensing fees start around $391 for a small wholesaler, and DMV's review usually takes 60 to 90 days.
Educational information only. This article is not legal or financial advice.
In this article
- The three steps at a glance
- Step 1: Choose wholesale or retail
- Step 2: Get your California dealer license
- Step 3: Join AuctionACCESS and register at each auction
- What it costs
- Buying through employees
- Which auction to register with first
- Can you buy at auction without a license?
- Frequently asked questions
The three steps at a glance
| Step | What you do | Who it's with | Typical time |
|---|---|---|---|
| 1. Choose a license | Wholesale (sell only to dealers) or retail (sell to the public) | You | A decision |
| 2. Get licensed | Course, exam, business setup, location, bond, Live Scan, application, DMV review | California DMV | Usually 60–90 days after you apply |
| 3. Get auction access | Enroll in AuctionACCESS, then register at each auction with your AuctionACCESS ID | AuctionACCESS, then each auction | Short, if your documents are ready |
Step 1: Choose wholesale or retail
Both license types can buy at dealer auctions. The difference is who you can sell to.
| Wholesale dealer | Retail dealer | |
|---|---|---|
| Can buy at dealer-only auctions | Yes | Yes |
| Can sell to | Other licensed dealers and auctions only | The public and dealers |
| Location | An approved office; no display lot or sign required | An office plus a display area and sign |
| Bond | $10,000 if you sell fewer than 25 vehicles a year (VC §11710.1); $50,000 at 25 or more | $50,000 |
| Licensing fees (before Live Scan) | About $391 | About $791 |
| Good fit for | Testing the business, flipping to other dealers, home-office starts | Selling to retail customers, financing, trade-ins |
Full details: Wholesale dealer license in California.
Step 2: Get your California dealer license
- Take a DMV-approved pre-licensing course. CDA's is 6 hours. Start the course
- Pass the DMV dealer exam. You need 70%, and you get three attempts. See How hard is it to get a dealer license?
- Set up the business: entity, EIN, city business license and a CDTFA seller's permit. See Do you need a seller's permit?
- Secure a location your city and DMV will approve.
- Get your surety bond and complete Live Scan fingerprints for every owner. See What is Live Scan?
- Submit your DMV application. DMV has up to 120 days to investigate (VC §11704(b)); in CDA's experience it's usually 60 to 90 days.
Checklist: What do you need to get a dealer license in California?
Step 3: Join AuctionACCESS and register at each auction
AuctionACCESS verifies that you're a licensed dealer, and over 400 auction marketplaces in the U.S. and Canada accept it. Think of it as a handshake: you enroll once, and each auction you sign up with checks your AuctionACCESS credentials instead of starting from scratch.
- Enroll your dealership at AuctionACCESS with your dealer license, business details and the authorized signer's photo ID.
- Get your AuctionACCESS ID by email once your membership is confirmed.
- Register at each auction with that ID. AuctionACCESS membership doesn't register you anywhere automatically. Manheim, for example, says you need both.
- Expect some paperwork at each auction, such as a W-9, a voided business check or bank details for payment, a sales tax certificate and the auction's own terms.
From experience (Garrett Eddings, professional opinion): AuctionACCESS doesn't take long to sign up for. What holds people up is not having their documents ready, so they get asked a bunch of questions they aren't familiar with. Have everything on the checklist in one folder before you start.
The full document checklist, fees and renewal rules: AuctionACCESS for California dealers.
What it costs
There's no single "auction license fee." Your cost is licensing, plus auction credentials, plus what it takes to run the business.
| Cost | Wholesale | Retail | Source |
|---|---|---|---|
| Licensing fees: course, exam, DMV application, first-year bond premium | About $391 | About $791 | License cost breakdown |
| Live Scan | $32 DOJ fee plus the site's fee, per owner | Same | DMV |
| AuctionACCESS | $103 a year per person; no charge for the dealership | Same | AuctionACCESS |
| Yearly license upkeep | About $246 | About $646 | License cost breakdown |
| Auction buy fees | Charged per car you buy; varies by auction and price | Same | Each auction's fee schedule |
| Starting the business: insurance, software, business licenses, location, inventory | Often $8,000–$20,000+ for a lean home-office start | About $25,000–$50,000 for a small office-based dealer | Startup cost guide |
The licensing fees are the cheap part. Budget for the business, not just the license. See How to start a car dealership with little or no money.
Cut your buy fees: the Independent Automobile Dealers Association of California (IADAC) offers members buy-fee credits at 16 participating auctions through its VIP Auction Program, which IADAC says can save up to $3,200 a year. That's a low-cost way to try a few different auctions. Members also get free continuing education. See IADAC (Opens in new window).
Buying through employees
| Question | Answer |
|---|---|
| Can an employee buy at auction for the dealership? | Yes, as an authorized representative of a licensed dealer |
| Do they need a license? | Yes, a California salesperson license. Auctions may ask for one for each representative who attends (ADESA does) |
| How do they get added? | The owner, as the authorized signer, adds them to the dealership's AuctionACCESS account and authorizes them to buy for the dealership |
| Who can be a representative? | Bona fide employees or contractors of the licensed dealership (AuctionACCESS) |
From experience (Garrett Eddings, professional opinion): An employee 100% needs a salesperson license to buy at auction, because they're negotiating numbers on the dealership's behalf. It's not hard to get. Once they're licensed, the owner adds them in AuctionACCESS, and that authorization tells every auction they can bid and negotiate for the dealership.
See Do you need a license to be a car salesperson?
Which auction to register with first
From experience (Garrett Eddings, professional opinion): I'd start with Manheim. Registering costs you nothing in my experience, and once you're in, you have the Manheim Market Report (MMR) as your unit of measurement for wholesale values. You can get MMR through some dealer software too, but if you're watching costs, a Manheim account is the inexpensive way to get it.
On Manheim.com, MMR is under the Buy tab. See Manheim MMR explained and Best car auction sites for new California dealers.
Can you buy at auction without a license?
Not at dealer-only auctions. You can buy at public, government and lien-sale auctions, and on some Copart and IAA lots open to registered members. A broker can bid for you, but buying cars to resell for profit still requires your own dealer license.
- Can you buy at a car auction without a dealer license?
- Can you buy from Manheim if you're not a dealer?
- How many cars can you sell without a dealer license?
Frequently asked questions
Is there an auction license in California?
No. California doesn't issue a separate auction license. Dealer-only auctions require a California DMV dealer license, wholesale or retail.
How do I get a license to buy cars at auctions in California?
Get a California dealer license (course, exam, business setup, location, bond, Live Scan and DMV application), enroll in AuctionACCESS, then register at each auction with your AuctionACCESS ID.
Can a wholesale dealer license buy at dealer auctions?
Yes. A wholesale license lets you buy at dealer-only auctions. You can sell only to other dealers and auctions, not to the public.
How much does it cost to get a license to buy at auction?
Licensing fees are about $391 for a small wholesaler or $791 for retail, plus Live Scan. AuctionACCESS is $103 a year per person. Starting the business costs far more.
How long does it take?
DMV's review usually takes 60 to 90 days after you apply. AuctionACCESS and auction registration are quick once your documents are ready.
Can my employee buy at auction for my dealership?
Yes, if they hold a California salesperson license and you add them as an authorized individual on your AuctionACCESS account.
Related
- AuctionACCESS for California dealers
- Get auction access in California: registration by auction
- How to buy cars at auction
- California Dealer License FAQ
Next step: Start the 6-hour dealer course for $99
Resources
- California DMV: Vehicle dealer license (Opens in new window)
- AuctionACCESS: Frequently asked questions (Opens in new window)
- Manheim: New dealer registration (Opens in new window)
- ADESA: Get started (Opens in new window)
- IADAC: Member benefits (Opens in new window)
Sources: California Vehicle Code §§11704 and 11710.1 · CDA license cost breakdown · AuctionACCESS FAQ (Opens in new window) ($103 per individual per year, 400+ marketplaces, representatives must be bona fide employees or contractors) · Manheim new dealer registration (Opens in new window) · ADESA get started (Opens in new window) (salesperson license for each representative; online buying generally within five business days) · IADAC (Opens in new window) (VIP Auction Program). Verified 2026-10-16.
This article is for educational purposes only and is not legal or financial advice. Auction rules and fees are set by each auction and change; confirm with the auction before you register. Mentions of auctions, AuctionACCESS and IADAC aren't endorsements. The instructor notes reflect one instructor's professional experience and opinion.