To get a license to buy cars at auctions in California, you’ll need to obtain a dealer license. Here’s a step-by-step guide to help you through the process:
1. Determine the Type of License Needed
- Retail Dealer License: Allows you to sell vehicles to the public and buy from auctions.
- Wholesale Dealer License: Allows you to buy and sell vehicles only to other licensed dealers, not to the general public.
2. Meet the Eligibility Requirements
- Be at least 18 years old.
- Have a clean criminal record related to the car dealership business.
- Have a valid California driver’s license.
3. Complete a DMV-Approved Dealer Education Program
- Enroll in and complete a 6-hour pre-licensing education course from a DMV-approved provider. This course will teach you about California’s vehicle code, sales regulations, and the responsibilities of a licensed dealer.
4. Obtain a Business Location
- Secure a business location that meets California DMV requirements, such as having an office, display area, and sign. The location must comply with local zoning regulations.
5. Prepare the Required Documentation
- Zoning Verification Letter from your local city or county zoning department.
- Business License from your local city or county.
- Surety Bond: A $50,000 bond is required for retail dealers. Wholesale dealers also require a surety bond, but the amount may vary.
- Live Scan Fingerprints: Complete a background check using Live Scan fingerprinting.
- Photographs of the Business Location: Include photos of the office, signage, and display area.
6. Submit Your Application to the DMV
- Complete and submit the following forms:
- Application for Original Occupational License (OL 12)
- Surety Bond (OL 25A)
- Certificate of Completion from the Dealer Education Program
- Live Scan Form (BCIA 8016)
- Pay the required fees (around $175 for the application, plus other fees).
7. Pass a DMV Inspection
- The DMV will inspect your business location to ensure it meets all requirements.
8. Attend an Interview
- You may be required to attend an interview with a DMV investigator to review your application and discuss your plans.
9. Receive Your License
- Once approved, you’ll receive your dealer license. You can now legally buy vehicles at auctions in California.
Following these steps carefully will help ensure that you successfully obtain your license and can start purchasing vehicles at auctions in California.4o