Los Angeles is one of the largest car markets in the United States — and one of the most competitive. With over 10 million residents spread across the county, the opportunity for a new dealer is enormous, but so are the regulatory requirements. California Dealer Academy has helped hundreds of aspiring dealers navigate the LA market and get their license the right way.
Whether you want to open a retail lot on a busy commercial strip, run a wholesale operation out of an office, or become a licensed auto broker buying at auction, our team knows the Southern California car dealership landscape inside and out.
Call us at 213-497-0955 for a free phone consultation. We'll answer your questions about zoning, DMV requirements, and what type of dealer license makes the most sense for your goals.
Here are the official offices and links you'll need to start your dealership in the Los Angeles area:
Los Angeles City Planning Departmentopens in new window
Verify that your proposed location is properly zoned before signing a lease. Retail dealers typically need C2 or M-zone properties. Indoor display-only setups are often approved more easily.
LA City Business Registrationopens in new window
All businesses operating within City of Los Angeles limits must register for a business tax registration certificate through the Office of Finance.
LA County Fictitious Business Name Filingopens in new window
If your dealership will operate under a name other than your legal name (e.g., "Sunset Auto Sales"), you must file a fictitious business name (DBA) statement with Los Angeles County.
FTB Field Officesopens in new window
300 S. Spring Street, Suite 5704Los Angeles
3615 S Hope Street
Los Angeles, CA 90007
(213) 744-7563
Van Nuys
6150 Van Nuys Boulevard, Suite 250
Van Nuys, CA 91401
(818) 376-4201
Covina
1365 N. Grand Avenue, Suite 102
Covina, CA 91724
(626) 974-7140
Note: DMV Occupational Licensing is not at the standard counter — enter through the main doors and proceed to the office area on the right.
Once you have your dealer license, you'll have access to wholesale dealer-only auctions where you can buy inventory at prices unavailable to the public. Here are the major auction houses serving the Los Angeles area:
1700 Saturn Street
Palmdale, CA 93550
ADESA Los Angeles Auctionopens in new window
One of the nation's largest dealer-only wholesale auction networks. ADESA Los Angeles runs weekly sales with thousands of vehicles from dealer trades, fleet, rental, and repossession sources.
241 E. Gardena Boulevard
Gardena, CA 90248
Manheim Los Angeles Auctionopens in new window
Manheim is the world's largest wholesale auto auction. The Gardena location serves the South Bay and Greater LA area with multiple weekly sales lanes and online bidding through OVE.com.
Online Dealer Platform
CarMax Dealer Auctionsopens in new window
CarMax operates a dealer-only online auction platform giving licensed dealers access to CarMax's off-lease and trade-in inventory. Vehicles can be purchased online and picked up at local CarMax stores throughout the LA area.
California requires all new dealer license applicants to complete a 6-hour pre-licensing course through an approved provider. California Dealer Academy is state-approved. You can complete the course online at your own pace — no classroom commute required.
In the course you'll learn:
Already have your license? California requires dealers to complete continuing education before each renewal. Our renewal course is quick, fully online, and satisfies the DMV requirement.
Skip the guesswork. Our Deluxe Dealer Package guides you 1-on-1 through every step — from zoning research and DMV paperwork to bond, signage, and opening day. Ideal for first-time dealers in the LA market.
Total startup costs typically range from $1,500 to $3,500+. This includes the DMV application fee ($175 for used vehicle dealers), a $10,000 surety bond (annual premium roughly $100–$200), business license fees, zoning permits, and your required pre-licensing education course ($99–$148 through California Dealer Academy). Retail lot dealers may have higher costs due to signage and zoning requirements.
Not necessarily. Wholesale dealer licenses do not require a display lot — only a commercial address that passes a DMV inspection. Wholesale dealers sell only to other dealers, not the public. Retail licenses require an approved lot or indoor showroom that meets LA zoning and signage requirements.
Plan for 60–120 days from start to finish. The pre-licensing class takes 1–2 days. Zoning approval in Los Angeles is typically the slowest step (4–8 weeks). After your location is approved and DMV paperwork is submitted, your dealer plates and license usually arrive within 2–4 weeks.
Los Angeles has some of the strictest zoning rules in California. Retail dealerships typically require C2 commercial or M industrial zoning. Indoor-only display models are viewed more favorably by city planners. Wholesale dealers face fewer restrictions. Always verify zoning before signing a lease — use the LA City Planning Departmentopens in new window portal.
PRO TIP: Indicate to the zoning department that you plan an indoor-display-only model. This significantly improves your chances of approval in residential-adjacent commercial areas.
No. Residential-zoned properties are not approved for dealer license addresses in Los Angeles. You need a commercially or industrially zoned address. Even auto brokers who handle only paperwork need a valid commercial address as their dealer principal location.
A retail dealer license allows you to sell vehicles directly to the public and requires an approved display lot and DMV-compliant signage. A wholesale dealer license allows you to buy and sell only to other licensed dealers — no public sales. Wholesale licenses have fewer location requirements, making them a popular starting point in LA's competitive market.
Yes. California law requires all new dealer applicants to complete a 6-hour pre-licensing education course through a DMV-approved provider before the DMV will issue a license. California Dealer Academy is state-approved. The course is available online for $99 (self-paced) or $148 with a live Saturday webinar session.
With an active California dealer license you can bid at dealer-only wholesale auctions including ADESA Los Angeles (Palmdale), Manheim Los Angeles (Gardena), and CarMax Auctions (online). These auctions give you access to fleet, off-lease, trade-in, and repo inventory at wholesale prices unavailable to the general public.
At California Dealer Academy, we can help you with something as basic as completing your application to doing it for you from start to finish.
Feel free to call the owner directly to get more information.
Garrett Eddings 760-681-1757
Whether you're looking to open a retail dealership on the West Side, run a wholesale operation in the San Fernando Valley, or become a licensed broker buying at auction across the LA basin — California Dealer Academy has the course and the expertise to get you there.