I recently went through the process of becoming a used car wholesale dealer in California. There were many obstacles and details that I had to go through, so I wanted to share this with you. Use this information for information only. I’m sure there are other ways, but this is the way I was able to do it. My path also involves becoming an LLC, but this is not a requirement either.
1. Find a class to earn your Dealer Education Certificate. There are many classes available depending on where you are.
2. After completing the class, you will need to bring the certificate to the DMV and take a written exam. The exam can be tricky, so try to enter as soon as possible after you have taken the Dealer Class.
3. Search for a location. I recommend looking for a location below; It was very difficult for us to find a location that was zoned for a Used Car Wholesale Dealer. Each city has different requirements, so don’t be discouraged if the first few locations don’t work out. I choose to search for the location first before submitting our LLC documentation. In some cases, you can submit LLC documentation before beginning this process.
4. Complete the appropriate information with the state of California to obtain your LLC. Once approved, you will need to submit an Information Statement to them. The DMV will want to obtain the Information Statement, so be sure to submit it as soon as possible.
5. Get your business license with the city. This took much longer than expected. The average time in my city was 8 weeks.
6. While in town, ask them to fill out a Use of Property form (OL 902). This document will state that you can use this location for a wholesale used car dealer.
7. Apply for a fictitious name with the county. They will also have their record in some local newspapers. In most cases, they will give you a list of places with the prices that you can sign up for. In my case I opted for the cheapest.
8. Apply for your resale permit. This part was very easy and can be done online or in person.
9. Get a bond from the dealer (OL25)
10. Request for Live Scan Service (DMV 8016). I found a place that will do the live scan and notary you will need for ADM 9050.
11. You must submit the following applications
For. Original occupancy license application (OL 12)
B. Original application for occupational license (OL 21A)
vs. Authorization to disclose financial information (OL 53)
D. Request for Occupational Leave Personal History Questionnaire, Part B (OL 29B)
me. Appointment of Director as Process Service Agent (ADM 9050)
12. Use the DMV OL248B checklist to make sure you are not missing anything.
I had to go through a lot of back and forth as I was always waiting for something to come. I recommend starting all the paperwork as soon as possible. You never know what could happen and it would have saved me a lot of time if I had done some of the other things during that wait.