How many cars can you sell in California without a dealers license? In California, it is illegal to sell more than five vehicles per year without a dealer’s license. This is known as the “five car law”. Exemptions to this rule include selling a vehicle that is 7 years old or older, selling a vehicle that is not your primary source of income, or selling a vehicle that is inherited. It’s important to note that if you exceed the limit of five vehicles per year, you can be subject to penalties, fines and legal action.
It’s always recommended to check with the California Department of Motor Vehicles (DMV) or the California Bureau of Automotive Repair (BAR) for the most up-to-date information and regulations on car dealerships and sales.
How do you apply for a car dealer licence in California
To obtain a car dealer’s license in California, you will need to meet certain requirements and follow certain steps. Here is a general overview of the process:
- Meet the eligibility requirements: You must be at least 18 years of age, have a valid driver’s license, and have a good driving record. You also must have a business location, which must be at least 600 square feet, have office hours that are open to the public, and have a phone listed with the local directory assistance.
- Obtain a surety bond: You are required to obtain a surety bond in the amount of $10,000, which is used to protect consumers from fraud or other unlawful acts.
- Pass a background check: You will need to pass a background check, which includes a fingerprint check and a criminal record check.
- Complete a Dealer Education and Training Program: You will need to complete a Dealer Education and Training Program, which is a 16-hour course that covers the laws and regulations related to car dealership operations.
- Obtain a license plate: You will need to obtain a license plate that is used for test-driving vehicles.
- Submit an application: Once you have met all of the requirements, you can submit an application to the California Department of Motor Vehicles (DMV) for a car dealer’s license.
It’s always recommended to check with the California Department of Motor Vehicles (DMV) for the most up-to-date information and regulations on car dealerships and licensing, as well as the fees associated with the process.
Is selling cars in California a good business idea
Selling cars in California can be a profitable business, but it also depends on a variety of factors such as your location, competition, and the current market conditions. Some benefits to selling cars in California include the large population and high demand for vehicles, as well as the state’s strong economy. However, the cost of doing business in California, such as high taxes and regulations, can also be significant. Additionally, the industry is facing a disruption with the advent of new technologies and changing consumer preferences which may lead to a shift in the traditional car-buying process.
It’s important to conduct a thorough market analysis and research the competition before starting a car dealership in California. It’s also essential to have a well-structured business plan and to be familiar with the legal and financial requirements of operating a car dealership in the state.
It would be best to seek advice from a business consultant or a financial advisor to help you evaluate the potential profitability of a car dealership in California before making a decision.
