How to Get a Car Resale License in California

Getting a car resale license in California can be a time-consuming process

A "resale license" is another name for a seller's permit. In California, getting a seller's permit to sell new or used cars requires filing at least 10 different forms. You will need to fill out the proper paperwork with both the California State Board of Equalization as well as the Department of Motor Vehicles. Be prepared to spend a considerable amount of time preparing the necessary documents.

Instructions

1. Fill out a basic seller's permit application. Any individual who sells tangible property subject to sales tax in California must obtain a seller's permit. You can register for a permit at one of the state's field offices or via mail by submitting Form BOE 400 SPA (see Resources).

2. Apply for a dealer's license. To sell either new or used vehicles in California, you will need to get a dealer's license from the Department of Motor Vehicles (DMV). Requirements vary depending on whether you will be selling new or used cars. If you will be selling fewer than 25 cars a year, you should apply as a wholesale-only dealer. A checklist of required documents is available on the DMV's website (see Resources).

3. Fill out all standard forms. The list of forms includes Application for Original Occupational License (OL 12), Original Application for Occupational License (OL 21A), Surety Bond of Dealer (OL 25), Authorization to Release Financial Information (OL 53), Certificate of Proposed Franchise (OL 124), Property Use Verification for Vehicle Dealer's License (OL 902), Application for Occupational License Personal History Questionnaire (OL 29), Appointment of Director as Agent for Service of Process (ADM 9050) and Request for Live Scan Service (DMV 8016). All forms are available on the DMV's website.

4. Submit additional forms to the DMV. If you will be selling used cars, submit the Dealer Education Certificate of Completion issued by the public provider. To sell new cars, submit a Letter of Authorization from each car manufacturer.

5. Acquire and submit necessary business documents. You will need to submit to the DMV proof of basic business requirements. These include a copy of your fictitious business name, lease agreement, business license, state board seller's permit and a photograph of your business location.

References

• California State Board of Equalization: Form BOE 400 SPA
• California DMV: Application Requirements for Vehicle Dealers -- Auto Commercial
• California DMV: Commercial License Forms

Resources

• California State Board of Equalization: Form BOE 400 SPA
• California DMV: Application Requirements for Vehicle Dealers -- Auto Commercial
• California DMV: Commercial License Forms