Dealer licensing by the numbers
- 6 hrs
- DMV pre-licensing course required for a first-time California dealer license
- CA DMV (Veh. Code §11710)
- $10,000
- Dealer bond for motorcycle/ATV-only and small wholesale-only dealers
- CA DMV (Veh. Code §11710)
Step 1: Take the six-hour pre-licensing course
First-time California dealers must complete a six-hour DMV-approved pre-licensing course. It covers the vehicle code and the rules of running a dealership, and it prepares you for the exam. Most courses are online.
Step 2: Pass the DMV dealer exam
After the course you sit for the DMV dealer exam in person: 40 multiple-choice questions, and you need 70% to pass. You get a few attempts with a short wait between them, so prepare with the course material and take it seriously.
Step 3: Set up a compliant business location
California requires an established business locationfor your dealership. Retail dealers generally need a dedicated commercial space that meets the DMV's display and signage rules; wholesale-only dealers have more flexibility. The DMV inspects the site as part of licensing.
Step 4: Submit your application packet
File your application with the DMV, using the new-dealer or used-dealer forms packet for your class, along with fingerprinting (Live Scan) and the applicable fees. This is the paperwork stage, and getting the class and forms right up front avoids delays.
Step 5: File the dealer bond
The final requirement is the motor vehicle dealer bond: $50,000 for most retail dealers, or $10,000 for motorcycle/ATV-only and small wholesale-only classes. You pay a premium, not the full amount. This is the step we handle. See what the dealer bond costs and the full auto dealer bond page, then start a quote when you reach this step. Tougher credit is welcome.