12/02/2024 | Press release | Distributed by Public on 12/02/2024 16:04
A state as large as California offers plenty of opportunity for would-be car dealers. Qualifying for a California dealer license is only the first step to success. Keeping your auto dealer license valid is essential for complying with state law and maintaining your operation over time. The state's renewal process involves several documents, continuing education, and fees-and it's important to get the steps right. Below, we discuss why renewals are necessary and how to renew your dealer license.
The Department of Motor Vehicles requires license renewal every two years. While this may seem frequent, the state needs to verify that businesses are following guidelines. These include updated automotive regulations and ensuring that dealers hold the required qualifications. California dealer license renewal also allows the DMV to document major changes to the business, such as changes of address and buildings or transfers to new owners.
License renewal also helps protect consumers by making sure dealerships are run properly and lawfully. For dealers, it's also a great opportunity to verify and update their records to ensure the business has all the proper paperwork to continue operating successfully in California1.
The California DMV requires a series of important documents for dealership license renewals:
There are also optional exemption forms for wholesale-only dealers, including a $50,000 Bond Exemption Application. This is applicable to wholesalers who sell fewer than 25 vehicles per. There is also a Continuing Education Exemption Application available for wholesale-only dealers.
In addition to the application forms, there are several fees required:
These are subject to change over time, so it's always best to check the official website.
All forms and fees need to be mailed to:
Department of Motor Vehicles Occupational Licensing Section
P.O. Box 932342 MS L224
Sacramento, CA
94232-3420
Since dealer license renewal involves document preparation, education requirements, and fees, it's important to start early and save yourself from a last-minute scramble. The DMV will provide advance notice of your renewal date, so you can start planning.
The California DMV website has plenty of valuable resources, such as notices of changing requirements will be posted there and answers to questions about regulatory changes or navigating the license renewal process1. You'll also be able to review your options for renewing online3.
California law requires dealers to complete a pre-license education program before gaining their initial dealership license. After acquiring their license, a dealer must also complete continuing education training every two years. Continuing education can be satisfied with a 4+ hour DMV-approved class4 and can be completed online.
These classes cover updated laws and regulations for the California automotive industry, expected ethical standards, consumer protection laws, dealership operation, and best practices. After completing a course, you will be issued a DMV Certificate of Completion as proof. Ultimately, continuing education ensures the dealership licensee has the information they need to succeed5.
License renewals are essential to the health and success of your business. Once you know what to expect from the process, it's easier to complete the steps and spend more time on customer care-including finding the best used vehicle inventory. ACV Auctions makes it easy to source quality vehicles at competitive prices thanks to their comprehensive condition reports and user-friendly auction platform. Join ACV Auctions today to start bidding on the used cars, trucks, and SUVs your customers want.