Vehicle Dealer Bond

Yes, California requires all vehicle dealers to obtain a Resale Permit from the California Department of Tax and Fee Administration (CDTFA) to legally collect sales tax from customers.

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.

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.

Both require the same $50,000 bond amount. The main differences are in other requirements: new dealers must participate in the Business Partner Automation Program (mandatory), while used dealers must complete dealer education and pass a DMV test. Wholesale-only used dealers may qualify for a bond exemption.

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.

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.

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.

This program allows dealers to process DMV transactions remotely. It is mandatory for new vehicle dealers and optional for used vehicle dealers. It is separate from the bond requirement.