California dealer license fees come to about $391 for a small wholesale dealer, $791 for a retail dealer, or $891 retail with the autobroker endorsement, plus a Live Scan fingerprint fee. Most of that is one-time. To keep the license, plan on roughly $246 a year for wholesale or $646 a year for retail. The biggest variable is your surety bond premium, which depends on your credit.
These are licensing costs, not the cost of starting a dealership. Business formation, a city business license, insurance, dealer software and forms, a location and inventory add much more. Even a lean home-office wholesale start with one car often runs $8,000 to $20,000 or more, and a small office-based dealer about $25,000 to $50,000. See what it costs to start a used car dealership and how to start with little money.
These figures use DMV's published fees (page updated April 1, 2026), California Dealer Academy's course prices, and typical starting bond premiums. Your exact total depends on your bond quote, how many dealer plates you order, and your county.
First-year cost by license type
| Item | Wholesale (under 25 cars/yr) | Retail | Retail + autobroker | Paid to |
|---|---|---|---|---|
| Pre-licensing course (6 hours, DMV-approved) | $99 | $99 | $99 | California Dealer Academy |
| DMV dealer exam | $16 | $16 | $16 | DMV |
| DMV application fee (non-refundable) | $175 | $175 | $175 | DMV |
| Family Support Program fee | $1 | $1 | $1 | DMV |
| Surety bond premium, first year | from about $100 ($10,000 bond) | from about $500 ($50,000 bond) | from about $500 ($50,000 bond) | Your surety provider |
| Autobroker endorsement | n/a | n/a | $100 | DMV |
| Live Scan fingerprints | provider fee | provider fee | provider fee | Live Scan site |
| Total before Live Scan | about $391 | about $791 | about $891 |
Optional: dealer plates are $92 each per year plus county fees ($94 for motorcycle plates). One plate brings the totals to about $483, $883 and $983. Each additional branch location is $70. A live Saturday webinar session can be added to the course for $49.
What it costs to keep your license each year
| Item | Wholesale | Retail | Retail + autobroker |
|---|---|---|---|
| DMV renewal fee | $125 per year | $125 per year | $125 per year |
| Family Support Program fee | $1 | $1 | $1 |
| Bond premium | from about $100 | from about $500 | from about $500 |
| Autobroker endorsement renewal | n/a | n/a | $75 |
| Continuing education (4 hours, every two years) | $39, about $19.50 a year | $39, about $19.50 a year | $39, about $19.50 a year |
| Yearly total | about $246 | about $646 | about $721 |
How DMV bills renewals: your first renewal comes after year one, and DMV collects two years of renewal fees at once at that point. Check your renewal notice for the exact amount due. Dealer plates renew at $92 each plus county fees. Renew your continuing education with our 4-hour renewal course.
Which license should you price out?
- Wholesale: buy and sell only with other dealers and auctions. No display lot, and a $10,000 bond if you sell fewer than 25 vehicles a year. See the wholesale dealer license guide.
- Retail: sell to the public, including online marketplaces. Needs a commercial location with an office and display area, and a $50,000 bond. See the retail dealer license guide.
- Retail + autobroker: adds the ability to broker new and used vehicle sales for consumers. See the autobroker endorsement guide.
Side by side: license type comparison.
Bond amounts and premiums
California Vehicle Code §11710 sets the bond amount by license type. You pay a yearly premium, not the full bond.
| Dealer type | Bond amount | Typical starting premium |
|---|---|---|
| Retail new or used vehicle dealer | $50,000 | about $500 a year |
| Wholesale only, 25 or more vehicles a year | $50,000 | about $500 a year |
| Wholesale only, under 25 vehicles a year | $10,000 | about $100 a year |
| Motorcycle-only or ATV-only dealer | $10,000 | about $100 a year |
Premiums rise with weaker credit. Get a real quote before you budget: bond and insurance guide · bond cost estimator.
Costs that aren't DMV fees
The license is the cheap part of starting a dealership. Also budget for:
- Location: retail needs a commercial office and display area; wholesale needs an office. See location requirements.
- Business setup: entity filing, city business license and a fictitious business name if you use a trade name. See business formation.
- Seller's permit: free from CDTFA, but required. See seller's permit.
- Insurance, inventory, forms and software. Use the startup budget calculator or read what it costs to start a used car dealership.
How California Dealer Academy's course prices compare
The pre-licensing course is the one cost you choose. Ours is $99 for the 6-hour self-paced course, with a live Saturday webinar session available for $49 more, and our continuing education course is $39. Every applicant completes the same DMV-required course hours; the certificate DMV accepts is the same from any approved provider.
Start the 6-hour course for $99
Frequently asked questions
How much does a dealer license cost in California?
License fees are about $391 for a small wholesale dealer, $791 for a retail dealer and $891 for retail with the autobroker endorsement, before the Live Scan fingerprint fee. Dealer plates add $92 each plus county fees. Starting the business costs much more once you add insurance, software, business licenses, a location and inventory.
What is the cheapest dealer license in California?
A wholesale-only license for dealers selling fewer than 25 vehicles a year. It needs only a $10,000 bond, so the premium can be around $100 a year, and it doesn't require a display lot.
How much is the DMV application fee for a dealer license?
$175, non-refundable, plus a $1 Family Support Program fee. The dealer exam is $16, and you must pay it again if you retake the test.
How much does it cost to renew a California dealer license?
DMV's renewal fee is $125 a year plus $1. With the bond and continuing education, plan on about $246 a year for wholesale and $646 for retail. DMV collects two years of renewal fees at your first renewal.
Do I pay the full $50,000 bond?
No. You pay a yearly premium to a surety company, typically starting around $500 a year for a $50,000 bond, depending on your credit.
Sources: California DMV: Vehicle Dealer License (application, renewal, exam, plate, branch and autobroker fees; page updated April 1, 2026) · California Vehicle Code §11710 (bond amounts) · California Dealer Academy course pricing. Bond premiums are typical starting rates, not quotes. Verified 2026-10-16.
This page is for educational purposes only and is not financial or legal advice. DMV fees change; confirm current fees with DMV Occupational Licensing before you apply.
California Dealer Academy provides educational content for California auto dealers and does not offer legal, tax, or financial advice. DMV requirements, retention rules, and deadlines are subject to change — always confirm current requirements directly with DMV Occupational Licensing, and consult a qualified attorney or CPA for guidance specific to your dealership.