California Dealer Location & Signage Requirements (2025 Guide)

• Complete DMV location & signage checklist
• Office, display area, and posted hours requirements
• Inspection photo examples and prep tips
• Zoning approval guidance for all dealer types
• Downloadable inspection packet and checklist

Download the Location & Inspection Checklist Set up your dealer license

Step-by-Step: How to Set Up a DMV-Compliant Dealer Location

Step 1 — Confirm Zoning Approval

Before signing a lease or buying property, contact your city or county zoning department and verify that the property is zoned for vehicle sales.

Ask these questions:

• Is automotive sales or leasing an approved use at this address?
• Are there display area or parking limitations?
• Are service operations (like detailing or repairs) allowed?
• Do you need a conditional use permit (CUP)?

Tip: Get zoning confirmation in writing — you'll include it in your DMV application.

Step 2 — Understand DMV Location Requirements

Every California dealer must have a business location that meets minimum DMV standards.

Basic requirements (per DMV OL guidelines):

• Permanent office — separate from personal use, with desk, chair, filing cabinet, phone, and internet.
• Signage — permanent, professionally made sign with your exact business name.
• Posted business hours — clearly displayed and consistent with your application.
• Display area — dedicated space to display vehicles for sale (typically visible from street).
• Secure record storage — lockable filing cabinet or system for deal jackets and records.
• Utilities — electricity, phone, and internet service must be active.
• Accessibility — entrance and signage visible to the public.

Step 3 — Display Area Requirements

The display area is where you'll park and show vehicles for sale.

For retail dealers:

• Must accommodate at least two vehicles (more recommended).
• Must be physically accessible from a public street or driveway.
• Must be separate from customer or employee parking.
• Should have paved or improved surface (no dirt or gravel).
• Must be well-lit, clean, and clearly part of your business.

For wholesale dealers (office-based):

• Display area may be optional, depending on city zoning.
• Must still have signage and records storage even if no vehicles are displayed.

For motorcycle or powersports dealers:

• Smaller display areas are typically acceptable, as long as they're visible and safe.

Step 4 — Office Requirements

Your office must be a dedicated business area, not shared with another company (unless clearly partitioned).

Minimum standards:

• Desk and chair
• Lockable filing cabinet for records
• Computer and internet access
• Phone line or VOIP number registered to your business
• Lighting and power
• Space to meet with customers or DMV representatives

Prohibited setups:

• Shared spaces without separation (e.g., co-working desks)
• Personal residences (unless zoned and approved for commercial use)
• Storage-only or mail-drop addresses

Pro Tip: The DMV inspector will expect to see a functional workspace — not just a sign and a chair.

Step 5 — Signage Requirements

Signage is one of the top reasons dealers fail inspection. Your sign must be permanent, durable, and visible from the street.

Requirements:

• Must display your exact business name as shown on your DMV application and bond.
• Must be permanently affixed (painted, mounted, or professionally installed).
• Must be visible from the nearest public street.
• Handwritten, paper, or vinyl banner signs are not accepted.
• Minimum letter height (suggested): 6 inches for readability.

Tip: If you file as Prime Auto Group LLC, your sign should read exactly that — not "Prime Motors" or "Prime Auto Sales."

Step 6 — Posted Business Hours

Your business hours must be:

• Posted on or near your entrance
• Clearly visible to the public
• Match the hours listed on your DMV application

Common failure: Dealers post hours but aren't present during them. The DMV may conduct spot checks — always ensure someone is available or on call.

Step 7 — Record Storage

You must have a secure, lockable filing cabinet to store:

• Deal jackets (contracts, disclosures, odometer statements)
• Title and registration paperwork
• Bond and insurance documentation
• Financial and accounting records

Digital storage is allowed, but physical backup is strongly recommended.

Step 8 — Lighting, Utilities & Accessibility

The DMV will confirm that:

• Electricity and internet are active
• Your business is accessible during posted hours
• The office and display area are well-lit and safe for visitors

Optional but smart: Add exterior lighting to your sign and display area for evening inspections or photos.

Step 9 — Take Photos for Your Application Packet

Include clear, labeled photos in your DMV packet showing:

• Front of business with permanent signage visible
• Display area (wide shot)
• Office interior (desk, filing cabinet, computer)
• Posted hours at the entrance
• Any secondary signs or directional markers
• Optional: lighting and paved surface close-up

Label each photo file (e.g., "Office_Desk_Area.jpg," "Front_Signage.jpg"). Neat presentation matters — the DMV reviews these closely.

Timeline: From Lease to Inspection

Step	Action	Typical Duration
1	Verify zoning with city/county	1–3 business days
2	Sign lease or property agreement	Varies
3	Install signage and set up office	3–5 business days
4	Take photos for DMV application	Same day
5	Schedule DMV inspection	2–3 weeks (average turnaround)

Downloads & Tools

• Dealer Location & Inspection Checklist
• Sample DMV Photo Packet
• Signage Approval Worksheet
• Business Hours Posting Template
• Zoning Verification Request Template

Get all downloads → /playbook/resources/

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