How to Get a Dealer License in California (2026)
In California, dealers are licensed by California Department of Motor Vehicles (DMV), Occupational Licensing. The bond is $50,000 (Vehicle dealer (standard)); $10,000 (Motorcycle/all-terrain-vehicle-only dealer). Every fact below links to the official page it came from.
California dealer license facts
| Licensing agency | California Department of Motor Vehicles (DMV), Occupational Licensing |
|---|---|
| License name | Used Vehicle Dealer License · Dealer Wholesale-Only Licensesource |
| Sales that trigger a license | Confirm with California Department of Motor Vehicles (DMV), Occupational Licensing |
| Surety bond | $50,000 (Vehicle dealer (standard)); $10,000 (Motorcycle/all-terrain-vehicle-only dealer)source |
| Application / license fees | New dealer license application fee: $175; Renewal application fee: $125; Branch location fee: $70source |
| Pre-licensing education | Used vehicle dealers and wholesale-only dealers must complete a DMV-approved Dealer Education Program and pass a written 'used dealer test' administered by DMV (up to 3 attempts, then a re-take fee applies); continuing education is also required every two years at renewal.source |
| Place of business | The office of the principal place of business and each dealership location must be established such that its construction is not temporary, transitory, or mobile in nature (a trailer-coach office is acceptable only if not part of the vehicle inventory and other requirements are met).source |
| Wholesale-only license | California issues a Dealer Wholesale Only license, applied for on the same form as the used dealer license (OL 248B).source |
| Last checked | 2026-09-24 |
Steps to get licensed in California
- Pick the license. California issues: Used Vehicle Dealer License, Dealer Wholesale-Only License. A wholesale-only license is available if you only sell to dealers.
- Set up the place of business. The office of the principal place of business and each dealership location must be established such that its construction is not temporary, transitory, or mobile in nature (a trailer-coach office is acceptable only if not part of the vehicle inventory and other requirements are met).
- Finish the required course. Used vehicle dealers and wholesale-only dealers must complete a DMV-approved Dealer Education Program and pass a written 'used dealer test' administered by DMV (up to 3 attempts, then a re-take fee applies); continuing education is also required every two years at renewal.
- Buy the surety bond. Required amount: $50,000 (Vehicle dealer (standard)); $10,000 (Motorcycle/all-terrain-vehicle-only dealer).
- Apply to California Department of Motor Vehicles (DMV), Occupational Licensing. Published fees: New dealer license application fee: $175; Renewal application fee: $125; Branch location fee: $70.
Flipping without a license in California
We could not find an official sales-count threshold for California. Before selling more than your own personal vehicles, Confirm with California Department of Motor Vehicles (DMV), Occupational Licensing.
California data on CarFlipIQ
FAQ
Who issues dealer licenses in California?
California Department of Motor Vehicles (DMV), Occupational Licensing licenses motor vehicle dealers in California. License types include: Used Vehicle Dealer License, Dealer Wholesale-Only License.
How much is the dealer bond in California?
The California dealer surety bond is $50,000 (Vehicle dealer (standard)); $10,000 (Motorcycle/all-terrain-vehicle-only dealer). You pay a surety company a yearly premium, not the full bond amount.
How much does a dealer license cost in California?
Published state fees: New dealer license application fee: $175; Renewal application fee: $125; Branch location fee: $70. Add the bond premium, insurance, and the cost of your place of business.
Do I need to take a course to get a California dealer license?
Used vehicle dealers and wholesale-only dealers must complete a DMV-approved Dealer Education Program and pass a written 'used dealer test' administered by DMV (up to 3 attempts, then a re-take fee applies); continuing education is also required every two years at renewal.
Is there a wholesale-only dealer license in California?
California issues a Dealer Wholesale Only license, applied for on the same form as the used dealer license (OL 248B).
Price California cars before you buy them
Check any vehicle against live California listings, then decide what to bid.
Not legal advice. Requirements change; confirm with California Department of Motor Vehicles (DMV), Occupational Licensing before you apply. Last checked 2026-09-24.