How to Get a Dealer License in California: Cost & Requirements

Last updated: August 24, 2026

California makes you earn the license before you can even apply. A used dealer or wholesale-only applicant must complete a dealer education program and pass a DMV written exam first, then file a $175 application backed by a $50,000 bond — after which the DMV has 120 days to investigate you. There is no “sell five and you’re fine” number here either; California defines dealing by conduct, not by count.

Education and the Exam Come First

The DMV’s own checklist puts this in a stop box: applicants for a used dealer or dealer-wholesale-only license must attend a dealer education program and pass a written examination administered by the DMV before submitting the original Certificate of Completion with the application.

Two details matter. The certificate is valid for one year from the course date, so a long search for premises can expire it. And the written exam is taken with your local Occupational Licensing Inspector, with a current California driver license or ID card required — it is not an online test. Each attempt costs $16.

What California Actually Requires

• $50,000 surety bond (Vehicle Code 11710(b)) on form OL 25. Dealers dealing exclusively in motorcycles or all-terrain vehicles post $10,000 instead; the DMV’s reduced-bond form (OL 25B) also covers wholesale-only dealers handling fewer than 25 vehicles a year.
• Dealer education certificate and DMV written exam before filing.
• Live Scan fingerprints (DMV 8016) for every person listed on the ownership form OL 29B. Out-of-state applicants use fingerprint cards at $42 per person.
• Entity paperwork — Statement of Information LLC-12 for an LLC or LLP, SI-550 for a corporation, plus a fictitious name statement unless your surname appears in the business name.
• Premises documentation — a signed lease or rental agreement, a business license or certificate of occupancy where the city or county requires one, and photographs of the location.
• A resale permit from the state tax authority.
• NMVTIS reports. Since July 1, 2012 a seller must obtain a National Motor Vehicle Titling Information System report for any used vehicle offered or displayed for sale, and post a warning on the vehicle when the report shows a branded title.

What It Costs

Item	Cost	Notes
Application fee	$175	Non-refundable; $70 each branch location
Surety bond	$50,000 penal sum	$10,000 for motorcycle/ATV-only dealers
Written examination	$16	Each retest another $16
Dealer plates (optional)	$87 auto / $89 motorcycle	Plus county fees, which vary
Autobroker endorsement	$100	Retail licenses only
California LLC (Form LLC-1)	$70	Statement of Information LLC-12: $20

How to Get Licensed, In Order

1. Form the entity ($70) and file the Statement of Information — the dealer packet asks for it.
2. Take the dealer education program and keep the original certificate; the one-year clock starts now.
3. Pass the DMV written exam with your local Occupational Licensing Inspector.
4. Complete Live Scan for every owner listed on the application.
5. Secure premises, get the lease signed, resale permit issued, and photographs taken.
6. File the packet with the $175 fee at a local Occupational Licensing Inspections Office — then expect up to 120 days of investigation.

Frequently Asked Questions

How many cars can I sell in California without a dealer license?

California does not set a magic number. The Vehicle Code defines a dealer by conduct — someone who sells or offers vehicles for compensation, or is engaged wholly or in part in the business of selling vehicles — and section 286 exempts “persons not engaged in the purchase or sale of vehicles as a business, who dispose of any vehicle acquired and used in good faith.” Selling your own cars is fine; buying to resell is dealing, whatever the count.

How much does a California dealer license cost?

The application fee is $175 and non-refundable, plus $70 for each branch location and $16 for the written examination (each retest is another $16). Dealer plates are optional at $87 each for autos and $89 for motorcycles, plus county fees. An autobroker endorsement adds $100. Behind those is a $50,000 surety bond.

What is the California dealer education requirement?

Applicants for a used dealer or wholesale-only license must attend a dealer education program and pass a written examination given by the DMV before submitting the application. The Dealer Education Certificate of Completion is valid for one year from the course date, and you take the written exam with your local Occupational Licensing Inspector using a current California driver license or ID card.

How long does a California dealer license take?

Under Vehicle Code section 11704(b), once the DMV receives your application with the correct fee it has 120 days to make a thorough investigation of the information in it. Incomplete applications are returned, so the clock does not start until the packet is right.

Taxes, the franchise tax, permits, and hiring are covered in our full guide to starting a business in California.

Sources

Source	What It Covers
CA DMV OL 248B — Used Dealer Application Checklist	All fees, required forms, education and exam order, Live Scan, documents, NMVTIS, 120-day investigation
Vehicle Code 11710	$50,000 dealer bond; $10,000 for motorcycle/ATV-only dealers
Vehicle Code 285 & 286	Dealer definition and the personal-use exclusion — no numeric threshold
CA DMV Occupational Licensing	License types and the online application portal

Comparing states? See our dealer license guides for every state we cover.