Wholesale Car Dealer License – Without a Lot (CA DMV)

This article covers the benefits, requirements, and steps to obtain a Wholesale Vehicle Dealer License in the state of California from home (without a lot). We’ll also discuss how to locate and access wholesale vehicle auctions and what to know about wholesale vehicle pricing, including automobiles, trailers, motorcycles and more.

Dealer 101® provides the DMV Vehicle Dealer Pre-License Education, which is the required first step to get a Wholesale or Retail Dealer License in California. After completing the online course at your own pace, you will receive your DMV Certificate of Completion (via email the next day) allowing you to start your online DMV Application to become a California Wholesale Vehicle Dealer.

What is a Wholesale Car Dealer?

A California Wholesale Vehicle Dealer License is issued by the Occupational DMV and is required to buy Vehicles from Dealer-only Wholesale Auctions and allows you to operate from your home (no lot or commercial office space required).

They can also purchase vehicles from other dealers, public sellers, businesses, and import from other countries.

California Wholesale Vehicle Dealers can drive their inventory vehicles (cars, trucks, motorcycles, RVs, trailers, boats, etc.) with Dealer License Plates for unlimited personal use without sales tax and registration fees. 

You can sell vehicles to Dealer-only Auctions, other licensed Dealers, export out of the country, and rent them on platforms like Turo. The only restriction is that Wholesale Dealers cannot sell directly to the public; however, they can upgrade to a Retail Dealer License any time in the future without reapplying once they meet the bare minimum commercial office requirements.

No Lot Required

In California, you get a Wholesale Vehicle Dealer License using a home office.allows. A commercial office is optional, but not required.

Option 1: Home Office Requirements

• One room “office” on the ground floor (an attached garage may be used)
• Access to the office directly from the outside (without walking through the residence)
• A desk with a lockable filing cabinet
• No signage or parking/display required

Option 2: Commercial Office (Optional)

You have the option to rent a commercial office without a lot. 

• A desk with a lockable filing cabinet
• No signage or parking/display required

Consider a Retail Dealer License (California) if you have a commercial office. Most of our customers start with a Wholesale License from home and upgrade to a Retail license later within your DMV account.

Additional requirements for Retail:

• Small commercial office
• One parking spot or garage marked as your “Display Area”
• Signage showing your dealership name on the building’s exterior (either as a sticker or sign)

Use our Dealer Friendly Landlord Map in our DMV Pre-License Course to help locate a Retail location.

How much does it Cost?

A Wholesale Vehicle Dealer License in California, costs less than $600 a year  – less expensive than the cost of owning a personal vehicle.

Wholesale Dealer License Cost:

• Application: $175
• Dealer Bond: $100/year
• DMV Online Education: $125 (one-time)
• Simple DMV Test: (40 questions): $16
• Live Scan: $20-$50
• Dealer Plate: $100/year (optional)
• Start an LLC/Corporation (optional): $70

Note: An LLC or Corporation allow you have multiple people on one license.

How to get a Wholesale Car Dealer License

We have a step-by-step guide that explains how easy it is to get your Dealer’s License in California. We cover these topics (and more) during our online courses.

1. Wholesale Dealer License Class (CA DMV)

• Required First Step to your application
• 100% Online, Self-paced & Guaranteed to Pass
• $125 including your DMV Certificate
• Free Next-day Certificate Delivery
• Live DMV Phone support: (619) 333-0701

2. Start Your California DMV Wholesale Vehicle Dealer License Application

• Online, paperless application
• 24/7 Instant Online Access
• Our step-by-step guide makes it easy
• Live Support: (619) 333-0701

3. Get your Wholesale Vehicle Dealer License (CA DMV)

• Accepted by all USA Dealer-only Auctions
• No tax or registration on resale vehicles
• Drive your inventory vehicles for personal or business use
• Buy & sell to all 50 states
• Rent your Vehicles
• Export to buyers in other countries

Drive Wholesale Vehicles for Personal Use

With a California Dealer License (Wholesale or Retail), anyone listed on the license can drive their dealership inventory vehicles using Special Dealer License Plates for unlimited personal use. As a Dealer, you don’t pay sales tax or registration fees, as these vehicles are for sale or getting ready to sell.

Others not listed on the Dealer License may only drive the vehicles for business use.

Depending on your business structure, the driving privileges and flexibility to add or remove people vary.

Apply as an LLC or Corporation:

Allows you to add or remove multiple people from the license anytime, giving each person listed unlimited personal driving privileges for inventory vehicles.

Individual/Sole Proprietor:

Restricted to one person with no flexibility to add others for personal use privileges. Must reapply for a new Dealer License to use an LLC or Corporation.

Selling & Renting (Wholesale Dealer)

A California Wholesale Vehicle Dealer License offers a variety of profitable options, especially considering how low-cost and accessible this license is. Here’s a look at the main ways wholesale dealers can leverage their license to rent or sell vehicles.

Renting & Turo

The main benefit of renting vehicles as a Licensed Wholesale Dealer is that you have the option to not pay sales tax upfront on the total vehicle value.

• Charge rental customers sales tax per rental.
• Rent vehicles through platforms like Turo or manage rentals independently.
  • If you’re using Turo, the platform handles the tax for you, simplifying the process even further.
• Offer tailored add-ons and services – like beach gear, camping supplies, bike racks, early pickup, or airport delivery depending on their travel needs.

Selling to the Public

Wholesale Vehicle Dealers in California aren’t licensed to sell or advertise directly to the public. However, many wholesale dealers work with a licensed Retail Dealer to sell their vehicles to public buyers.

• Retail dealers can handle the paperwork and transfer details, typically for a  transaction fee.
• At any time, a Wholesale Dealer can upgrade to a Retail Dealer License, as it only requires meeting the bare minimum commercial office requirements.
• Wholesale Dealers don’t need to transfer or sell vehicles to themselves – they can drive inventory vehicles for unlimited personal use with Dealer License Plates.

If you’re looking for a Retail Dealer to assist with transactions, the California DMV’s Occupational Licensing directory can help you find a licensed Retail Dealer in your area.

Selling to Other Dealers

Wholesale Vehicle Dealers can sell to other licensed Dealers across the country. This is a popular option as Dealers can source vehicles locally or through wholesale auctions and then sell to dealers in other states or regions. This is known as a “wholesale sale”.

Selling to Dealer Auctions

Dealer Auctions are another profitable channel for Wholesale Dealers. Wholesale Dealers can acquire vehicles from various sources, such as local trade-ins or platforms like Craigslist, and sell them at dealer auctions. Most dealer auctions publish recent sales data, providing insight into pricing trends and helping dealers make informed buying and selling decisions.

Export Vehicles Internationally

Exporting vehicles internationally is a popular avenue for wholesale vehicle dealers in California. Wholesale dealers can sell to buyers in other countries, often securing higher profit margins. Exporting provides access to broader markets and increased demand, especially for specific vehicle types or models in international markets.

Buying Wholesale Vehicles

A California Wholesale Dealer License provides access to tax-free vehicles. Vehicle quality can vary by source, with some offering stronger guarantees and protections than others.

Wholesale Vehicle Auctions

One of the largest sources of wholesale vehicles are Dealer-only Auctions. These auctions offer a greater selection, often at prices below retail market value. 

Many Dealer-only Auctions offer “green light guarantees”, ensuring the quality of the engine and transmission, making these cars a safer choice than buying from typical public or wholesale sellers.

To find auctions near you, check out our Wholesale Vehicle Auction Directory for a comprehensive list of reputable wholesale vehicle auctions, including these top Dealer-only auctions:

• Manheim Auctions
• Adesa Auctions
• Copart Auctions
• CarMax Auctions
• National Powersport Auctions

Buy Wholesale from Dealerships

Wholesale dealers in California can expand their inventory by purchasing vehicles from other licensed  Vehicle Dealers, both locally and internationally.

• Find a Wholesale or Retail Dealership near you: Use California’s Occupational License Lookup Search to locate licensed dealers in your area.

Wholesale Vehicle Types

With a Wholesale Dealer License, you can access a wide variety of vehicles beyond standard cars. Here are some of the types typically available:

• Cars & SUVs: Standard vehicles and SUVs of all types.
• Exotic & Luxury Cars: High-end vehicles, often available through specialized auctions.
• RVs & Motorcycles: Recreational vehicles and motorcycles for niche markets.
• Golf Carts & Recreational Vehicles: Ideal for specialty rentals or specific buyers.
• Trucks & Trailers: Ranging from light-duty to commercial-grade.
• Boats: Available for wholesale purchase through select auctions.
• Commercial Vehicles: From delivery vans to heavy-duty trucks for business use.

Wholesale Vehicle Prices

Wholesale vehicle prices generally run lower than retail, allowing Dealers to purchase vehicles at a price that supports profitable resale. Prices can fluctuate widely based on factors like market demand, vehicle specifics, and economic conditions.

Factors Affecting Wholesale Prices

• Market Demand: Prices rise and fall with demand. When demand is high, wholesale prices increase; when low, they decrease.
• Vehicle Condition: Age, mileage, and overall vehicle condition play a significant role. Vehicles needing reconditioning often have lower wholesale prices.
• Seasonal Trends: Certain types of vehicles may be more in demand seasonally, like RVs in summer, impacting wholesale prices.
• Supply and Inventory: When inventory is high, prices tend to drop; when vehicles are scarce, prices may increase.

Used Vehicle Value Index

Many Dealers use industry resources to keep track of pricing trends and monitor the wholesale vehicle market. Manheim’s Used Vehicle Value Index page provides a reliable snapshot of recent pricing shifts, helping dealers make well-informed buying decisions.

Wholesale Parts & Services

Wholesale and Retail Dealers can access exclusive discounts and tax-free purchases (for resale) at major parts retailers like O’Reilly, NAPA, Powersports stores, and OEM dealerships (e.g., Honda, Mercedes).

• Discounted Accessories: Wholesale pricing on items such as parts, tools, accessories, and gear.
• Wholesale Business Supplies: Wholesale pricing on products and materials that you resell, install on your vehicles, or use with services like window tinting and vehicle wraps.
• Tax-Free Resale: Items purchased for resale are tax-exempt.

Sign-Up Process: Dealers typically sign up by providing a seller’s permit and Dealer License to access these discounts.