Become a wholesale used car dealer

I recently went through the process of becoming a wholesale used car dealer in California. There were a lot of hurdles and details that I had to go through, so I wanted to share this with you. Please use this information for information only. I’m sure there are other ways, but this is the way I was able to do it. My path also involves becoming an LLC, but this is also not required.

1. Find a class to earn your Dealer Education Certificate. There are many classes available depending on where you are.

2. After completing the class, you will need to take the certificate to the DMV and take a written test. The exam can be tricky, so try to get in as soon as possible after you’ve taken the dealer class.

3. Find a location. I recommend finding a location below; It was very difficult for us to find a location that was zoned for a Wholesale Used Car Dealer. Each city has different requirements, so don’t be discouraged if the first few locations don’t work out. I choose to find the location first before submitting our LLC paperwork. In some cases, you can file the LLC paperwork before this process begins.

4. Complete the corresponding information with the State of California to obtain your LLC. Once approved, you will need to file an Information Statement with them. The DMV will want to obtain the Information Statement, so be sure to file it as soon as possible.

5. Get your business license with the city. This took much longer than expected. The average time for my city was 8 weeks.

6. While in town, have them fill out a property use form (OL 902). This document will indicate that you can use this location for the used car wholesale dealer.

7. Apply for a fictitious name with the county. They will also have your register this with some local newspapers. In most cases they will give you a list of places with prices of who you can sign up with. In my case I stayed with the cheapest.

8. Submit for your Resale Permit. This part was super easy can be done online or in person.

9. Obtain a Dealer Bond (OL25)

10. Live Scan Service Request (DMV 8016). I found a place that will do the Live Scan and notary you will need for ADM 9050.

11. You will need to submit the following applications

on. Original Occupational License Application (OL 12)

B. Original Application for Occupational License (OL 21A)

against Authorization to Release Financial Information (OL 53)

D. Occupational License Application Personal History Questionnaire, Part B (OL 29B)

me. Appointment of Director as Agent for Notification of Processes (ADM 9050)

12. Use the DMV’s OL248B checklist to make sure you’re not missing anything.

I had to go through a lot of back and forth as I was always waiting for something to come in. I recommend starting all the paperwork as soon as possible. You never know what might come up and it would have saved me a lot of time if I had some of the other things going during that wait.