In California there are two basic types of dealer licenses:
Retail Dealer License
Wholesale Dealer License
There is one endorsement allowed on either license as long as you post a $ 50k Bond and can post a sign:
With a retail car dealer license, you can sell cars to the anyone. You can sell cars to the public, you can sell cars to dealers, you can sell cars to auctions. Retail licensed dealers may also sell on consignment. When you have a retail license you are automatically a wholesaler as well.
With a wholesale car dealer license, you can only sell cars to dealers and auctions. Wholesale car dealers wishing to sell a car to the public need a retail licensed car dealer to ” draft ” their sale. This ensures that the vehicle is registered properly with the DMV and the correct sales taxes are paid. We offer “drafted sale ” services to our students who obtain a wholesale dealer license and insurance.
We always suggest a retail car dealer license, if possible. Zoning restrictions are stricter but there is more money in retail. Wholesale dealers turn over more cars buying right and selling them at the dealer auctions.
Retail Car Dealers & Autobrokers must post a $ 50k Bond.
Wholesalers selling 24 cars per year or less must post a $ 10k Bond
Your Car Dealer Bond
We are the only DMV Certified Car Dealer School
owned by an actual Retail Car Dealer
with an Autobroker Endorsement
Teaching quality dealer education since 1998
DLR License 35862
DMV Teaching License CCC0004