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Above-the-Fold Value Highlights

  • DMV-approved pre-licensing education (certificate included)
  • Step-by-step process for motorcycle, ATV, and powersports dealers
  • Done-with-you setup: entity, bond, insurance, location, and inspection
  • Full compliance checklist and downloadable templates
  • Access to wholesale and powersports auctions after licensing

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

Who This Page Is For

  • Entrepreneurs planning to open a motorcycle, scooter, or powersports dealership
  • Retail dealers expanding into bikes, side-by-sides, or ATVs
  • Wholesalers adding motorcycle inventory for resale to other dealers
  • Online resellers or brokers specializing in niche powersports markets
  • Shop owners or mechanics turning their repair business into a full dealership

Why a Motorcycle Dealer License Is Different

A California motorcycle dealer license authorizes you to buy, sell, and display motorcycles, scooters, ATVs, and powersports vehicles for sale to the public and/or other licensed dealers.

It functions similarly to an auto dealer license but is tailored to smaller vehicles, different display standards, and manufacturer-specific equipment.

  • Buy and sell motorcycles and powersports vehicles legally in California
  • Access dealer-only motorcycle and powersports auctions
  • Operate a compliant retail location or showroom
  • Collect and remit sales tax
  • Offer financing, warranties, and accessories

Motorcycle vs. Auto vs. Wholesale Dealer — Key Differences

License TypeCan Sell to PublicRequires Display LotTypical InventoryBest For
Retail Auto DealerYesYesCars, trucksFull retail sales
Wholesale DealerNoSometimesDealer-to-dealer vehiclesLow overhead B2B
Motorcycle DealerYesUsually smaller display areaMotorcycles, ATVs, scootersPowersports specialists

Motorcycle dealers often have more flexibility in display space but must still meet local zoning and safety standards for inspections, fueling, and storage.

Step-by-Step: How to Get Your California Motorcycle Dealer License

Step 1 — Complete DMV-Approved Dealer Education

California requires all new dealer applicants — including motorcycle dealers — to complete a DMV-approved pre-licensing education course.

The California Dealer Academy course covers dealer laws and licensing requirements, application process and inspection walkthrough, record-keeping and deal jacket rules, title/registration/tax compliance, and powersports-specific best practices. You’ll receive a completion certificate for your DMV application.

Enroll hereView webinar schedule

Step 2 — Form Your Business Entity

Before applying, form a legal business entity:

  • Choose your structure: LLC or Corporation (most common)
  • Obtain your EIN from the IRS
  • Register your entity with the California Secretary of State
  • File a fictitious business name (DBA) if operating under a trade name
  • Open a dedicated business bank account

Keep your entity name consistent across bond, insurance, application, and signage to avoid inspection delays. Learn how to form your entity

Step 3 — Secure a Compliant Location

Your motorcycle dealership must meet DMV and local zoning requirements: a permanent business address (no PO boxes), display area for one or more units, permanent street-visible sign, office space with desk/internet/filing cabinet, and posted business hours. Check fire marshal and occupancy requirements if you handle fuels or maintenance.

See detailed signage and location rules → /playbook/location-requirements/

Step 4 — Obtain a Dealer Bond and Insurance

All motorcycle dealers in California must carry a $50,000 surety bond. Bond cost typically ranges $250–$1,000/year depending on credit. Insurance needed includes garage liability, lot/inventory coverage, dealer plate/test-ride coverage, and workers' comp if you employ staff.

We can connect you with providers who specialize in motorcycle and powersports dealer coverage. Learn more

Step 5 — Prepare and Submit Your DMV Application

A complete application packet typically includes DMV Occupational Licensing forms, pre-licensing certificate, business entity documents, lease or property documentation, proof of bond and insurance, photographs of office/signage/display area, and list of owners/officers with ID.

Pro tip: Label every photo and form clearly; ensure your business name matches exactly on every document. Full walkthrough → /playbook/dmv-application/

Step 6 — Prepare for Your DMV Inspection

Before inspection, ensure signage, posted hours, utilities, display area cleanliness, furnished office, secure records storage, and organized documents ready for review. Common delays: temporary banners, shared/cluttered spaces, insufficient display area, mismatched names on sign and forms.

Download the Inspection Readiness Checklist → /playbook/resources/

Step 7 — After Approval: Plates, Supplies, and Auctions

Once approved: order dealer plates and supplies, register with motorcycle/powersports auction networks, and begin acquiring inventory.

Auction access options: Manheim Powersports, ADESA Specialty Auctions, National Powersport Auctions (NPA), RideSafely, Copart Powersports, and independent California auction networks. Explore auctions

Timelines and Costs

Average timeline: 4–8 weeks from application to approval (depends on city, inspection, and completeness).

Typical cost breakdown

  • Education: $100–$200
  • Entity formation: $100–$400
  • Lease or office space: varies by city
  • Signage and office setup: $500–$1,500
  • Bond and insurance: $300–$1,200
  • DMV fees and supplies: $200–$400

Need a tailored estimate for your city? Set up your dealer license

Ongoing Compliance Requirements

  • Maintain an active $50,000 bond
  • Keep garage and lot insurance current
  • Renew your license annually
  • Complete renewal education every two years
  • Display your license number in all advertisements
  • Keep accurate records for at least four years
  • Follow advertising and disclosure rules

More details → /playbook/dealer-compliance/

Advertising & Sales Tips for Motorcycle Dealers

Advertising must include your dealer license number and accurate vehicle descriptions. Avoid misleading claims like “guaranteed financing.” Effective channels: Google Business Profile, Facebook/Instagram ads with real lot photos, local SEO, partnerships with repair shops and riding schools, and local events.

Pro tip: Create a landing page for each product category (Motorcycles, ATVs, Side-by-Sides) to boost SEO relevance.

Downloadable Tools and Checklists

  • Motorcycle Dealer License Checklist (PDF)
  • DMV Application Sample Packet
  • Inspection Readiness Checklist
  • Startup Budget Template
  • Auction Day Checklist
  • Dealer Plate Order Sheet

Get all downloads → /playbook/resources/

Common Mistakes to Avoid

  • Renting a space that isn’t zoned for vehicle sales
  • Submitting applications with mismatched names or incomplete photos
  • Temporary banners or paper signage during inspection
  • Missing bond or insurance paperwork
  • No lockable filing cabinet for records
  • Ignoring posted hour requirements

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

Frequently Asked Questions

Do I need a car lot to sell motorcycles?

Yes, you must have a compliant business address and display area, but motorcycle lots typically have smaller size requirements than auto dealerships.

Can I sell ATVs, UTVs, or scooters with this license?

Yes. Most powersports vehicles are covered under the motorcycle dealer license in California.

Do I need to take the same class as car dealers?

Yes. The DMV-approved pre-licensing course covers all dealer categories (auto, motorcycle, wholesale, etc.).

Can I run my motorcycle dealership from home?

Usually no. You need a commercial location zoned for vehicle sales. Home addresses rarely qualify unless zoned appropriately.

How long does it take to get approved?

Most applicants are approved within 4–8 weeks once their location and application are ready.

Can I attend vehicle auctions with a motorcycle license?

Yes. You’ll have access to major powersports and dealer-only motorcycle auctions once licensed.

How much does a dealer bond cost?

Premiums average between $250–$1,000 annually depending on credit and provider.

Can I add a car dealer license later?

Yes. Many dealers add retail auto authority after successfully operating as a motorcycle dealer.

Why Work With California Dealer Academy

  • DMV-approved motorcycle dealer training
  • California-specific setup guidance for zoning, inspection, and compliance
  • Done-with-you consulting for bond, insurance, and paperwork
  • Auction access support for NPA, Manheim, Copart, and ADESA
  • Free templates and forms to simplify your application

Get Dealership Setup ConsultationSet up your dealer license

Start Your Motorcycle Dealership Today — Expert Guidance from Application to Inspection

You can become a licensed motorcycle dealer in California faster and with fewer headaches by following a proven, DMV-compliant process. Let us help you get set up, inspected, and ready for business.

Enroll in your DMV-approved pre-licensing course Download your free motorcycle dealer checklist Set up your dealer license

Optional Google Ads Landing Elements

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  • California Motorcycle Dealer License — Fast Track Setup & Training

Subheads:

  • DMV-Approved Education + Full Setup Assistance
  • Entity, Bond, Insurance, and Inspection — All Handled Together
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Get My Motorcycle Dealer License Plan

Form Subtext: Tell us your city and target launch date. We’ll map your licensing steps and inspection timeline.

Trust Blurbs

California Dealer Academy — DMV-approved training and consulting. Trusted by hundreds of dealers statewide. California-specific expertise for motorcycle and powersports licenses.