Obtaining a wholesale dealer license in California is a complicated process, it is good to be prepared and informed about the various steps and requirements. Read on for some useful tips on how to tackle the licensing and how to save time and money on the requirements.
Just the basics
Naturally, the first place to start your licensing endeavor is the California Department of Motor Vehicles website.
Reading carefully through the Application Check List will give you a thorough idea of the required documents and fees.
DMV Licensing procedure
You will also have to undergo a Dealer Education Program and receive a Certificate of Completion.
The best California Car Dealer School is run at gotplates.com
The licensing process includes completing the Personal History Questionnaire
You must provide a copy of your Fictitious Business Name Statement.
Zoning approval, even for a home based office location for wholesale dealers is required.
You must provide a rental or lease agreement for a physical space or a proof of ownership.
Our license builder, Azita Rezaei can assist you with the license building process
You can reach Azita at 415-730-3137
You must get bonded
The wholesale dealer surety bond for the State of California will be $10,000 for wholesale less than 24 cars per year and $ 50,000 for wholesale of 25 cars per year or more.
You will need to supply a signed copy of the original in your application package.
The car dealer bond is a protection for your clients and for the state. The car dealer bond functions as a guarantee that your business will pay all of its obligations of sales & use tax, dmv fees and ANY judge’s order to pay. Failure to comply with all applicable state regulations could result in bond activation which requires immediate repayment to the bonding company.
The bond price is a percentage of the car dealer bond amount. Your application will determine your car dealer bond price and is based on your personal credit.