How to Start a Used Car Dealership in California — Without the Headaches

Starting a used car dealership in California is exciting — but let’s be real: it’s also complicated, time-consuming, and loaded with paperwork, inspections, and compliance steps that most people don’t even know exist.

That’s where we come in.

California Dealer Academy specializes in setting up your dealership from start to finish — the right way — so you can focus on what matters most: selling cars and growing your business.

This guide breaks down what it takes to get licensed in California — and shows you how we can handle every step for you.

Step 1: Choose the Type of Dealer You Want to Be

Retail, wholesale, broker, or auction — we’ll help you determine the best fit for your goals and market.

Already know what you want? Great — we’ll structure your application accordingly. Not sure? We’ll walk you through the pros, cons, and regulations around each.

✅ We help you choose the right license and strategy for your dealership.

Step 2: Take (or Let Us Help You Schedule) Your DMV Pre-License Training

California requires a 6-hour DMV-approved course before applying. We help you enroll and give you tips to pass the exam on your first try.

✅ We guide you through the course registration and requirements.

Step 3: Secure an Approved Business Location

We verify zoning, signage, and space requirements — and can even help you find a location. No guesswork, no costly mistakes.

✅ We’ll handle zoning checks, lease review, and even signage coordination.

Step 4: Form Your Business Entity & Get Tax Setup

LLC, Corp, or Sole Prop? We connect you with corporate attorneys that help give you the legal advice you need.

✅ We set up your business entity, Seller’s Permit, and EIN — fast.

Step 5: Obtain Your Dealer Bond

You’ll need a $50,000 bond to get licensed. We’ll connect you with a reliable bonding partner and submit the paperwork for you.

✅ We connect you with affordable bonding solutions and handle the forms.

Step 6: Submit a Complete, DMV-Ready Application

We gather and organize everything: live scan, lease details, site photos, and forms — then submit it all for you.

✅ We prepare, organize, and submit your DMV application.

Step 7: Prep for Your DMV Inspection

Don’t stress the inspection. We’ll walk you through a pre-inspection checklist and ensure you pass the first time.

✅ We ensure your office, signage, and setup meet DMV standards.

Step 8: Get Your Dealer Plates, Temp Tags, and e-File Access

Once you’re licensed, we help you order dealer plates and register for temp tag and e-filing tools.

✅ We set up your post-license tools and DMS software access.

Step 9: Launch with Confidence — the Right Way

We help you register with ACV, Manheim, and other auctions. Need help with inventory sourcing or CRM tools? We’ve got you covered.

✅ We set your dealership up to succeed — not just to get licensed.

Why Work With California Dealer Academy?

  • Save 40+ hours of time and avoid costly delays
  • Get licensed faster with fewer headaches
  • Insider knowledge of DMV, zoning, and inspection standards
  • Ongoing support — not just one-time help
  • Transparent pricing and expert service

Ready to Launch Your Dealership?

Let’s Get You Set Up.

Whether you’re new to the auto industry or finally ready to go legit, we’ll help you get licensed, legal, and ready to sell — fast and stress-free.

Request an Appointment to Set Up Your Dealership

Looking for more?

Check out our Digital Auction Guide - Part 1 right now for free.

Once you register for our DMV certified pre-licensing course, you'll get access to part 2!

Take the Class Today