How to Get Your Auto Broker License in California (2025 Guide)
August 13th, 2025 by Garrett Eddings
In California, an Auto Broker License allows you to assist customers in buying or leasing vehicles for a fee, without carrying your own retail inventory. Unlike a wholesale or standard retail dealer, an auto broker acts as a professional intermediary—sourcing cars, negotiating deals, and arranging paperwork. This license is an endorsement added to your existing retail dealer license.
What Is an Auto Broker License?
In California, an Auto Broker License is not a standalone credential—it’s an endorsement you add to a retail dealer license. The endorsement allows you to legally negotiate or arrange the purchase or lease of vehicles for customers, typically for a set fee or commission.
You do not maintain large on-site inventory. Instead, you connect buyers with vehicles from dealer partners or auctions, leveraging your industry access and negotiation skills.
Auto Broker vs. Retail Dealer
- Retail Dealer: Buys and sells vehicles directly to the public, usually from a display lot.
- Auto Broker: Acts as an agent for the buyer or lessee, sourcing vehicles and managing the transaction process.
Both require a retail dealer license first. Without it, you cannot obtain the broker endorsement.
Eligibility & Requirements
- Hold a valid California Retail Dealer License
- Complete Auto Broker Endorsement Application (OL 312)
- Comply with location requirements for your dealer license (zoning, signage, office space)
- Maintain a Surety Bond of at least $50,000
- Carry garage liability insurance meeting DMV minimums
- Pay the required endorsement fee
- Disclose all ownership and management personnel
Costs & Fees
The total cost for your Auto Broker License will depend on whether you already have a retail dealer license and your existing compliance setup. Below are common cost components:
- Endorsement application fee: ~$100–$150
- Surety bond premium: ~$400–$3,500/year (credit-based)
- Insurance adjustments: Additional $0–$2,000/year depending on coverage expansion
- Office/location costs: Already included in retail dealer license expenses
- Miscellaneous compliance: Signage updates, business license amendments (~$50–$300)
If you are starting from scratch (no retail dealer license), your total could range from $5,000–$25,000+ depending on lot size, location, and credit.
Step-by-Step Application Process
- Obtain a Retail Dealer License (if not already licensed)
- Complete the Auto Broker Endorsement Application (OL 312)
- Submit application to the California DMV Occupational Licensing Division with:
- Proof of existing dealer license
- Bond and insurance documentation
- Applicable fees
- Await DMV review; respond promptly to any requests for additional info
- Receive approval and updated license reflecting broker endorsement
- Update business licenses, marketing materials, and disclosures to reflect broker status
Ongoing Compliance
- Renew both your dealer license and broker endorsement as required
- Maintain surety bond and insurance without lapse
- Follow Auto Broker Advertising Guidelines (no misleading offers)
- Ensure all broker agreements are in writing and signed by the customer
- Keep accurate transaction records for DMV audit purposes
Benefits of an Auto Broker Endorsement
- Lower overhead compared to stocking retail inventory
- Flexibility to source vehicles statewide or even nationally
- Ability to earn through fees and commissions on each transaction
- Expanded customer base (individual buyers, fleet clients, leasing)
- Potential for repeat and referral business through customer satisfaction
Frequently Asked Questions
Do I need a car lot to be an auto broker?
Yes, if you are a retail dealer. You must maintain a location that meets DMV dealer requirements, even if you do not display vehicles regularly.
Can I broker vehicles without a dealer license?
No. In California, you must have a retail dealer license before applying for the broker endorsement.
How long does it take to get the broker endorsement?
If you already hold a retail dealer license, the process can take 2–6 weeks depending on DMV processing times.
Are there special disclosures for auto brokers?
Yes. California law requires a written broker agreement outlining your services, fees, and responsibilities to the customer.
Final Take & CDA Assistance
An Auto Broker License in California is an add-on to your retail dealer license, unlocking the ability to earn through vehicle sourcing and negotiation without maintaining large inventory. While startup costs are modest if you’re already licensed, compliance is strict—proper bonding, insurance, and paperwork are critical.
We Can Help You Get Licensed
California Dealer Academy offers end-to-end assistance—from retail dealer licensing to broker endorsement applications. We’ll help you navigate the digital DMV process, prepare documentation, and ensure compliance for faster approval.
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