As of August 2026: California issues six main license categories relevant to vehicle dealers — Retail, Wholesale, Autobroker (an endorsement, not a standalone license), Motorcycle, Dismantler, and Lessor-Retailer. The core distinction driving most of the differences below is simple: who you're legally allowed to sell to, which in turn determines your bond amount, lot requirements, and typical business model.
All license categories are issued by DMV Occupational Licensing under California Vehicle Code §11700 et seq. As of 2026, all original applications, renewals, and modifications are filed through DMV's Digital Experience Platform, via MyDMV account at dmv.ca.gov/portal/vehicle-industry-services/occupational-licensing/login — physical mail and checks are no longer accepted. This changed how you file, not what's required; the fee and bond figures below still apply regardless of filing method.
| License Type | Who You Can Sell To | Lot Required? | Bond Amount | DMV Fees | Typical Use Case | Common Mistake |
|---|---|---|---|---|---|---|
| Retail | The general public and other licensed dealers | Yes — CVC §11712-compliant established place of business | $50,000 (OL 25 bond) | $175 application (OL 12); $425 New Motor Vehicle Board fee applies to new-vehicle dealers | Standard used or new car dealership selling directly to consumers | Assuming any commercial space qualifies — DMV requires a permanent, non-mobile location actually occupied on a continuous or regular basis, with specific signage and display area requirements |
| Wholesale | Other licensed dealers and at auction only — not the general public | Requirements are less extensive than retail, but a compliant business location is still required | $10,000 (OL 25 B) if under 25 vehicles/year; $50,000 (OL 25) if 25 or more | $175 application (OL 12) | B2B flipping/wholesaling, fast turns, lower fixed overhead than a retail storefront | Selling to a retail consumer even once — this is a licensing violation, not a gray area, regardless of how the deal was structured |
| Autobroker Endorsement | N/A directly — brokers arrange sales between consumers and other dealers, they don't hold or sell inventory themselves | No — this is an add-on endorsement to an existing Retail or Wholesale license, not a standalone license with its own location requirement | Covered under the base Retail or Wholesale license bond — no separate bond confirmed | — | Sourcing a specific requested vehicle for a client and earning a fee/commission from the selling dealer | Treating "broker" as its own license type — it's a checkbox endorsement added to an existing Retail or Wholesale license application (Form OL 21A), not a separate application |
| Motorcycle | Structure mirrors Retail/Wholesale but scoped to motorcycles and motor-driven cycles | Yes, scaled to the smaller footprint typical of powersports dealers | $10,000 | — | Powersports-focused dealers wanting a smaller footprint than a full auto lot | Assuming a motorcycle dealer license lets you sell cars, or vice versa — these are scoped by vehicle type, not interchangeable |
| Dismantler | Sells vehicles for parts/salvage, not for road use to consumers in the way a retail dealer would | Yes — location must have zoning appropriate for dismantling and parts storage | $50,000 | — | Parts businesses, rebuilders, salvage specialists sourcing primarily from salvage auctions | Underestimating the environmental and title-compliance recordkeeping burden — dismantlers face detailed documentation requirements for every vehicle's acquisition, title, and disposal |
| Lessor-Retailer | Leases vehicles to consumers (distinct regulatory category from a standard retail sale) | Yes | — | — | Dealers structuring transactions as leases rather than sales | Losing the license automatically for failing to maintain a valid seller's permit (CVC §11617(a)(6) and §11721(f) both allow automatic cancellation on this basis) |
Cells shown as a dash are figures we have not yet confirmed against DMV's own current, dated fee schedule strongly enough to publish with confidence. Publishing an unverified number is worse than publishing none — an outdated or wrong fee costs a reader real money and damages our credibility as a resource. Confirm those figures directly with DMV before making licensing decisions.
This article is for educational purposes only and does not constitute legal advice. Fees and bond amounts are subject to change — always confirm current requirements directly with DMV Occupational Licensing before making licensing decisions.
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.
