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Above-the-Fold Value Highlights

  • Step-by-step guidance through DMV, BAR, and environmental requirements
  • DMV-approved dealer education + dismantler-specific setup support
  • Entity formation, bond, insurance, and inspection preparation
  • Hazardous materials, drainage, and record-keeping compliance walkthrough
  • Free downloads: dismantler checklist, forms list, environmental readiness guide

Enroll in Pre-Licensing Set up your dealer license Download the Dismantler License Checklist

Who This Page Is For

  • Entrepreneurs launching a vehicle dismantling or salvage operation
  • Auto recyclers, parts sellers, and salvage lot owners formalizing their business
  • Mechanics expanding into used parts resale
  • Towing companies with salvage or storage inventory
  • Body shops converting to dismantling operations

What a California Auto Dismantler License Allows

A California Auto Dismantler License allows you to buy, store, dismantle, and sell used vehicle parts or the materials from salvaged or wrecked vehicles.

  • Purchase and store vehicles designated for dismantling or scrap
  • Sell parts to the public, repair shops, or other dealers
  • Sell dismantled materials for recycling (steel, aluminum, catalytic converters, etc.)
  • Work with insurance companies, tow yards, and auctions for salvage acquisitions
  • Access DMV dismantler auctions for total-loss vehicles

Why the Dismantler License Is Unique

While it’s technically part of the dealer license family, the auto dismantler license carries additional environmental and safety obligations due to hazardous materials, fluid drainage, and recycling requirements.

It requires compliance with multiple agencies including DMV, BAR, DTSC, and local fire and zoning authorities.

Core compliance areas: environmental controls, hazardous waste handling, drainage and spill containment, secure storage, and record-keeping.

Auto Dismantler vs. Auto Dealer vs. Recycler — Key Differences

License TypeCan Sell to PublicCore FunctionOversight AgenciesKey Compliance Areas
Retail DealerYesSell vehiclesDMVSales, advertising, contracts
Wholesale DealerNoB2B vehicle tradeDMVRecord-keeping
Auto DismantlerParts onlyDismantle and recycle vehiclesDMV, BAR, DTSCEnvironmental, hazardous waste

Step-by-Step: How to Get a Dismantler License in California

Step 1 — Complete DMV-Approved Dealer Education

All dismantlers must complete a DMV-approved pre-licensing education course. This ensures understanding of DMV procedures, record-keeping, title handling, and dealer compliance. Include your completion certificate with your DMV application.

Enroll here

Step 2 — Form Your Business Entity

  • Choose entity type: LLC or Corporation recommended
  • Register with the California Secretary of State
  • Obtain an EIN from the IRS
  • Open a business bank account
  • File a DBA if necessary

Business Formation Guide

Step 3 — Secure a Properly Zoned Location

The location is the most critical part of a dismantler application. You must have a property zoned for dismantling, wrecking, or recycling, and it must comply with fire and environmental safety codes.

  • Zoning for dismantling or wrecking (verified in writing by city/county)
  • Secure perimeter fencing with restricted access
  • Proper fluid drainage and containment systems
  • Separate storage for hazardous waste and batteries
  • Hard-surfaced dismantling area (no unpaved soil)
  • Permanent signage with business name and posted hours
  • Office space for records and inspections

Tip: Obtain zoning approval before signing a lease or purchase. More info → Location Requirements

Step 4 — Obtain a $50,000 Surety Bond and Insurance

All dismantlers must carry a $50,000 surety bond. Insurance should include general liability, garage liability, environmental/pollution liability (recommended), workers' comp, and fire/theft coverage for stored vehicles and parts.

Bond & Insurance Guide

Step 5 — Environmental and Agency Compliance

Dismantlers must meet environmental and safety requirements enforced by BAR, DTSC, local fire departments, and air/water boards where applicable.

  • Fluid collection and storage containers
  • Spill prevention and containment plan
  • Battery and tire disposal procedures
  • Licensed hauler contracts for fluids and scrap
  • Proper labeling of waste containers
  • Drainage systems that prevent ground contamination

Document all measures—photos, diagrams, and policies strengthen your inspection file.

Step 6 — Submit Your DMV Application

Package includes DMV Occupational License application, pre-licensing certificate, entity documents, zoning approval letter, lease/property docs, proof of bond/insurance, photos (signage, office, yard, drainage), hazardous waste permits (if applicable), and owner IDs.

Label each section clearly. Include environmental certifications and city permits where required. Full walkthrough → DMV Application

Step 7 — Pass the DMV and Local Inspections

Expect inspections from the DMV and local agencies. DMV checks signage, fencing, office setup, records; environmental inspections check fluid containment, battery/tire storage, spills, labeling, and hauler records.

Perform a mock inspection using our checklist before scheduling your DMV appointment. Download: Dismantler Inspection Readiness Checklist

After Approval: Operating as a Licensed Dismantler

Once approved you can purchase and dismantle vehicles, sell parts and scrap, report dismantled vehicles to DMV and NMVTIS, and partner with insurance carriers and salvage auctions.

Record-Keeping

Maintain a file for every vehicle with title/acquisition record, dates, buyer/seller info, NMVTIS reporting confirmation, and disposal/sales documentation. Use a digital database to simplify audits.

Ongoing Compliance & Renewal Requirements

  • Renew your DMV dismantler license annually
  • Maintain active bond and insurance
  • Keep current with BAR and DTSC requirements
  • Maintain proper record-keeping for all dismantled vehicles
  • Renew local fire and zoning permits as required
  • Complete DMV renewal education every two years

Compliance resources → /playbook/dealer-compliance/

Timelines and Costs

Average timeline: 6–10 weeks once environmental and zoning paperwork is ready.

Typical costs

  • Education: $100–$200
  • Entity formation: $100–$400
  • Bond premium: $250–$1,000
  • Insurance coverage: $1,000–$3,000+ annually
  • Zoning/environmental permits: $500–$5,000
  • Signage, fencing, and office setup: $1,000–$3,000
  • DMV application fees: $200–$400

Need a personalized estimate? Set up your dealer license

Common Mistakes to Avoid

  • Leasing property before verifying dismantler zoning approval
  • Submitting incomplete environmental documentation
  • Inconsistent business names across paperwork
  • Temporary signage or non-secure fencing during inspection
  • Missing fluid drainage or hazardous waste controls
  • Failure to maintain NMVTIS reporting

Avoid these pitfalls with our Deluxe Dealer Package → Get dealership setup help

Frequently Asked Questions

Do I need a car dealer license to dismantle cars?

No. A dismantler license is a separate license type issued by the DMV, although it follows similar requirements.

Can I operate a dismantler yard from my home?

No. You must have a commercial location zoned for dismantling or recycling with proper drainage, storage, and safety systems.

What’s the difference between a dismantler and a junkyard?

A dismantler is a licensed, regulated business. An unlicensed “junkyard” without environmental compliance is illegal.

Do I need to complete a course?

Yes. All dismantler applicants must complete a DMV-approved pre-licensing education course.

How do I dispose of hazardous waste?

Use licensed haulers and maintain manifests for all fluid and material disposals.

Can I sell parts to the public?

Yes. You can sell used parts, materials, and scrap to individuals and businesses.

What agencies inspect dismantlers?

Typically the DMV, BAR, DTSC, and local fire or environmental agencies.

Can I add a retail license later?

Yes. You can apply for a separate retail or wholesale license under the same entity if you expand operations.

Free Downloads and Tools

  • Dismantler License Checklist
  • DMV Application Packet Example
  • Environmental Readiness Checklist
  • Hazardous Materials Log Template
  • NMVTIS Reporting Log Template
  • Zoning Approval Request Template

Access all downloads: /playbook/resources/

Why Work With California Dealer Academy

  • DMV-approved education for dismantlers and recyclers
  • Expert help navigating environmental and zoning compliance
  • Connections to bond and insurance providers familiar with dismantler coverage
  • Step-by-step application and inspection prep support
  • Tools, templates, and guidance built specifically for California dismantlers

Learn moreSet up your dealer license

Launch Your Auto Dismantler Business — Let Us Handle the Compliance Details

Getting your dismantler license in California doesn’t have to be complicated — but it does have to be done right. Our DMV-approved course and setup system walk you through every requirement — from entity formation to environmental clearance.

Enroll in Pre-Licensing Download the Dismantler Checklist Set up your dealer license

Optional Google Ads Landing Elements

  • Get Your California Dismantler License — Step-by-Step Help
  • Auto Dismantler License California (2025) — Fast-Track Approval
  • Open a Legal Auto Recycler Yard in California

Form Header: Get My Dismantler License Plan

Form Subtext: Tell us your city and target open date — we’ll map your zoning, environmental, and DMV requirements.