Retail Vs. Wholesale Car Dealer's License in California
Motor vehicle dealerships play a significant role in the California economy, making up more than 21 percent of retail sales in the state. Retail and wholesale dealers both contribute to the economy, though they each have different application processes and authorizations.
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Types
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A retail dealer may sell new and used or only used vehicles. California issues four separate types of licenses for motor vehicle dealers: new/used auto commercial, used auto commercial, wholesale only and autobroker.
Application Differences
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The application process for retail and wholesale dealers is similar; there are only two differences between them. Only new car retail dealers need to file a Certificate of Proposed Franchise for each make of car they are going to sell. Only wholesale and used-car dealers need to complete a dealer-training program and pass a written test.
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Authorizations
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A retail automotive dealer in California can sell vehicles at wholesale to other licensed dealers, in addition to selling new and/or used cars. A wholesale automotive dealer in California can sell cars only to other licensed dealers.
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References
- California Department of Motor Vehicles: Application Requirements for Vehicle Dealers Auto Commercial
- California Department of Motor Vehicles: Dealer-Wholesale Only Application Check List
- California Department of Motor Vehicles: New Dealer Application Check List
- California Department of Motor Vehicles: How to Complete an Application for a Vehicle Dealer License
- California New Car Dealers Association: About CNCDA
- Photo Credit car dealership 3 image by Alexey Stiop from Fotolia.com
