How do you get an automotive retail license in California?

To obtain an automotive retail license (dealer's license) in California, you must comply with the following requirements and steps:

1. Business Formation:

- Establish your business as a legal entity, such as a corporation or limited liability company (LLC), and register with the California Secretary of State.

2. Location and Facility:

- Choose an appropriate location for your automotive dealership and ensure that it meets the zoning requirements for automotive retail businesses.

3. Dealership Name:

- Select a business name that doesn't resemble or conflict with existing dealerships or trademarks.

4. Vehicle Dealer Application (Form REG 256):

- Complete and submit the Vehicle Dealer Application (Form REG 256) to the California Department of Motor Vehicles (DMV).

5. Surety Bond:

- Obtain a surety bond (also known as a dealer bond) in the amount of $50,000 to protect consumers against fraud and financial loss.

6. Financial Statements:

- Submit two years of audited or certified financial statements demonstrating your financial stability and ability to operate the dealership.

7. Experience:

- Provide evidence of automotive industry experience or training, such as educational coursework or prior employment as a dealer or manager.

8. Dealership Address:

- Ensure that the physical location of your dealership is included in your application.

9. Vehicle Sale and Service Facility Requirements:

- Ensure your dealership meets the facility requirements for selling and servicing vehicles, such as proper signage, vehicle displays, and maintenance equipment.

10. Background Check:

- Submit to a criminal background check conducted by the DMV.

11. Dealer License Fee:

- Pay the applicable dealer license fee.

12. Dealer License Examination:

- Pass the written dealer license examination administered by the DMV.

13. DMV Interview and Inspection:

- Attend an interview and facility inspection conducted by the DMV to assess your dealership's compliance with regulations.

Upon meeting all the requirements and successfully completing the process, the California DMV will issue you an automotive retail (dealer's) license. Regularly check with the DMV for updates and changes to requirements and regulations.