Enroll in Pre-Licensing Set up your dealer license Download the Motorcycle Dealer License Checklist
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.
| License Type | Can Sell to Public | Requires Display Lot | Typical Inventory | Best For |
|---|---|---|---|---|
| Retail Auto Dealer | Yes | Yes | Cars, trucks | Full retail sales |
| Wholesale Dealer | No | Sometimes | Dealer-to-dealer vehicles | Low overhead B2B |
| Motorcycle Dealer | Yes | Usually smaller display area | Motorcycles, ATVs, scooters | Powersports specialists |
Motorcycle dealers often have more flexibility in display space but must still meet local zoning and safety standards for inspections, fueling, and storage.
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 here • View webinar schedule
Before applying, form a legal business entity:
Keep your entity name consistent across bond, insurance, application, and signage to avoid inspection delays. Learn how to form your entity
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/
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
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/
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/
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
Average timeline: 4–8 weeks from application to approval (depends on city, inspection, and completeness).
Need a tailored estimate for your city? Set up your dealer license
More details → /playbook/dealer-compliance/
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.
Get all downloads → /playbook/resources/
Avoid these with our Deluxe Dealer Package → Get dealership setup help
Yes, you must have a compliant business address and display area, but motorcycle lots typically have smaller size requirements than auto dealerships.
Yes. Most powersports vehicles are covered under the motorcycle dealer license in California.
Yes. The DMV-approved pre-licensing course covers all dealer categories (auto, motorcycle, wholesale, etc.).
Usually no. You need a commercial location zoned for vehicle sales. Home addresses rarely qualify unless zoned appropriately.
Most applicants are approved within 4–8 weeks once their location and application are ready.
Yes. You’ll have access to major powersports and dealer-only motorcycle auctions once licensed.
Premiums average between $250–$1,000 annually depending on credit and provider.
Yes. Many dealers add retail auto authority after successfully operating as a motorcycle dealer.
Get Dealership Setup Consultation • Set up your dealer license
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
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