Q&A for How to Become a Car Dealer in California

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Question

If I'm the 100% shareholder of my C-Corporation, but I do not have a work permit in the U.S., can my corporation become a retail dealer itself, or can I go through one of my employees?

Keith McCrone

Community Answer

A California dealer license is tied to both the business and the person running it. In your case, you could appoint someone as a general manager in charge of running the dealership. That individual would then be empowered to handle the application and test with the DMV.

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Question

Can I add a wholesale auto license with auto broker endorsement to my current general business license? I am using this license to export camping trailers and parts overseas.

Community Answer

I believe you should have the wholesale auto dealer's license at a minimum to export camping trailers. Get the AB endorsement at the same time, and you are good to go.

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Question

Can I have a repair shop and used car dealer license in the same building?

Community Answer

It is possible. Contact the business bureau in your city for specific advice.

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Question

What kind of crimes would stop me from obtaining my car dealer's license?

Community Answer

Major felonies, like drug sales, assault and gun charges could stand in one's way. However, usually, if you can prove you're a changed person, this can be overcome.

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Question

Does a wholesale dealer require a surety bond to sell the cars?

Community Answer

Yes, a car dealer bond is required for wholesale-only, although each state might have individual requirements along with it.

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