A Dealer License in California costs much less than most people think. California is one of the easiest and most affordable states to obtain a Wholesale or Retail Dealer License, including the optional Autobroker endorsement. A dealer license becomes even more affordable after the first year, with lower renewal costs and fewer one-time fees. Read on for a complete breakdown of costs and requirements.
The Value of a Vehicle Dealer License
A California Dealer License (Wholesale and Retail) pays for itself through the significant savings and exclusive benefits it offers. The financial perks can easily outweigh the cost of obtaining and maintaining your license.
- No Sales Tax or Registration: Inventory vehicles are exempt because they are for sale or getting ready to sell, significantly reducing your costs.
- Drive Vehicles for Personal Use: Drive your dealership inventory for personal and business use without mileage or time restrictions.
- Access Wholesale Vehicle Auctions: Purchase vehicles at dealer-only auctions across the country.
- Discounts on Parts and Services: Enjoy dealer wholesale pricing on parts, tools, and services.
Cost by Dealer License Type
You can start with one license type, like Wholesale, and easily switch to another anytime in the future within your DMV account. It’s common for dealers to adjust their license type multiple times as their business evolves.
Wholesale Vehicle Dealer License Cost
The Wholesale Dealer License is a simple and affordable way to start. This license lets you sell vehicles to other dealers, auctions, and even export them internationally. You can also rent vehicles to customers, all while operating from your home address—no need for a commercial office or lot. the only thing you can't do is public sales
- First Year Cost: $477
- Annual Renewal Cost: $250
Retail Vehicle Dealer License Cost
The Retail Dealer License is ideal if you want to sell vehicles directly to the general public through platforms like Craigslist or OfferUp. It also allows you to sell to dealers, auctions, and rent vehicles. The only added requirement is a small commercial office with one parking space, which typically costs $250–$350 per month. To make this step easier, our DMV pre-license education course includes a dealer landlord map to help you find the right location.
- First Year Cost: $851
- Annual Renewal Cost: $625
Retail Vehicle Dealer License + Autobroker Cost
The Retail + Autobroker, offers the same benefits as the Retail License with one extra advantage: the autobroker endorsement. This allows you to refer customers to other dealerships nationwide and earn commissions on new vehicle sales and leases—without needing to stock those vehicles yourself.
- First Year Cost: $951
- Annual Renewal Cost: $700
First Year Cost to Get a Dealer License (California DMV)
California offers two main types of Dealer Licenses: Wholesale and Retail (also referred to as a Used Vehicle Dealer License). If you want to operate as an Autobroker, it’s simply an additional fee added to a Retail Dealer License.
Below is a detailed breakdown of the estimated cost to get a dealer license in California. The table highlights both required and optional items for Wholesale and Retail/Broker licenses, helping you understand the upfront costs involved.
| Required items | Wholesale | Retail / Broker |
|---|---|---|
| DMV Dealer Pre-License EducationGet your DMV Certificate at Dealer101.com | $125 (One-time) | |
| Live Scan FingerprintingRequired background check, costs may vary | $60 (One-time) | |
| Dealer License Exam40 questions – easy and guaranteed to pass | $16 (One-time) | |
| Dealer BondCustomer protection against dealer fraud | $100/yearNo Credit Check | $475+/yearCredit Check |
| Dealer License ApplicationComplete your DMV application online | $175 (One-time) | |
| Optional items | Wholesale | Retail / Broker |
| LLC or Corporation Filing (Online)Ability to add members for auction and dealer plate access | $70 (Optional) | |
| Dealer Plate (Auto/Trailer)Drive inventory vehicles (no tax or reg) | $92/year (Optional)Plus $1-23 County Fees | |
| Motorcycle PlateOptional plates for motorcycle inventory | $94/year (Optional)Plus $1-23 County Fees | |
| Autobroker EndorsementRefer customers to dealerships (leases or new vehicle sales) | Not available for Wholesale | $100 (Optional) |
| Branch LocationsCost for each additional business location | Not available for Wholesale | $70 (Optional) |
| Total cost | Wholesale | Retail / Broker |
| To get a Dealer License | $477/year | $851/year |
Annual Costs to Renew a Dealer License (California DMV)
Renewing a dealer license is even cheaper than getting one. Unlike individual vehicle owners who must renew registration and pay taxes on each car annually, dealers only renew their license once a year.
As a dealer, you won’t pay tax or registration fees on inventory vehicles, making the dealer license a cost-effective solution for managing multiple vehicles. This streamlined process helps keep your operating costs low year after year.
| Required items | Wholesale | Retail / Broker |
|---|---|---|
| DMV Continuing EducationComplete online at Dealer101.com (no exam) | $50 (Every 2 years) | |
| Dealer BondCustomer protection against dealer fraud | $100/year | $475+/year |
| Dealer License RenewalComplete your DMV application online | $125 | |
| Optional items | Wholesale | Retail / Broker |
| Dealer Plate (Auto/Trailer)Drive inventory vehicles (no tax or reg) | $92/year (Optional)Plus $1-23 County Fees | |
| Motorcycle PlateOptional plates for motorcycle inventory | $94/year (Optional)Plus $1-23 County Fees | |
| Autobroker EndorsementRefer customers to dealerships (leases or new vehicle sales) | N/A | $75 (Optional) |
| Branch LocationsCost for each additional business location | N/A | $125 (Optional) |
| Total cost | Wholesale | Retail / Broker |
| To renew a Dealer License | $250/year | $625/year |
Get Started with Your Dealer License Application
A California Dealer License is more affordable and accessible than most people realize. With just a valid California ID, you can begin the process of becoming a licensed dealer online today.
We’re DMV-approved to provide the required Pre-License Education. After completing the online course we will email you your DMV Certificate of Completion for free, allowing you to apply for your license.
