Can I get a bond exemption as a wholesale dealer?
Yes, wholesale-only dealers may apply for a $50,000 bond exemption by submitting form OL 56 to the DMV. This exemption must be renewed with your license.
Do I need this bond to get my dealer license?
Yes, you must obtain the bond before the DMV will issue your vehicle dealer license. The bond must remain active for the entire time you hold your license.
How much does a California vehicle dealer bond cost?
The cost varies based on your credit score and financial history. Dealers with good credit typically pay 1-3% of the $50,000 bond amount annually ($500-$1,500), while those with challenged credit may pay 3-10% ($1,500-$5,000) or more per year.
What is the NMVTIS requirement in California?
All California vehicle dealers must obtain a National Motor Vehicle Titling Information System (NMVTIS) report for any used vehicle offered for sale. If the report shows a branded title, you must display a warning on the vehicle.
What's required to pass the DMV inspection?
The DMV inspector will verify your office meets requirements (permanent structure, not temporary), check your display area (if retail), confirm proper signage, and review your books and records. You must have your bond in place before the inspection.
Do I need a bond for each branch location?
No, one $50,000 bond covers your main location and all branch locations. However, you must pay a $70 fee for each branch location when applying or renewing.
Do I need dealer plates and a bond?
The bond and dealer plates are separate requirements. Dealer plates are optional but commonly used. The bond is mandatory for licensure. Dealer plates cost $92 each plus county fees.
What if I only sell vehicles out of state?
If you're licensed in another state and only import vehicles for sale to California licensed dealers or export vehicles purchased from California dealers, you may be exempt from California dealer licensing.
