How to Get a Dealer License with Auto Broker Endorsement
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How to Get a Dealer License with Auto Broker Endorsement?

Becoming a certified autobroker in California is a complex process involving several steps to ensure compliance with state regulations.

Are you prepared to deal with...

  • DMV Forms
  • Building Permits
  • Signage Requirements
  • Licensing
  • State Regulations
  • Inventory Acquisition
  • Zoning Restrictions
  • Legal Compliance
  • Advertising
  • Environmental Regulations
  • Financing Obstacles
  • Strict Regulations

Most Dealer Educators will not help you with this!

California Dealer Academy will...

  • get you the correct license for becoming an autobroker
  • help with state regulations.
  • give you critical information for your autobroker endorsement.

Start Now by Registering for the Class

Rapid Dealer Certification

Study and take the test by yourself

$80

Rapid Registration

  • 6 Hour Pre-Licensing Class
  • Instant Online access to course materials
  • Satisfies DMV Requirement
  • Study on your schedule
  • 6 hour LIVE webinar to cover materials
  • Phone support available
  • List of locations to start a dealership
  • Guidance from 20 year professional with unlimited questions during class

Dealer Certification Webinar

Learn together and get help

$115

Webinar Registration

  • 6 Hour Pre-Licensing Class
  • Instant Online access to course materials
  • Satisfies DMV Requirement
  • Study on your schedule
  • 6 hour LIVE webinar (held Weekly)
  • Phone support available
  • List of locations to start a dealership
  • Guidance from 20 year professional with unlimited questions during class

That's It! You Can Stop Reading and Register for the class.

Still Reading!? Ok, if you really want to know more here is a step-by-step guide on how to become an autobroker in California.

1. Understand What an Autobroker Is

An autobroker acts as an intermediary to help customers find and purchase vehicles. Unlike a traditional car dealer, an autobroker does not own inventory but sources cars on behalf of clients.

2. Meet Basic Requirements

  • Age: You must be at least 18 years old.
  • Legal Authorization: Be authorized to work in the United States and have a California ID or Driver's License
  • Business Setup: Set up a legal business entity (e.g., sole proprietorship, LLC, or corporation).

3. Complete Pre-Licensing Education

California requires prospective auto brokers to complete a 6-hour pre-licensing course. These courses cover laws, regulations, and best practices related to the automotive industry. You must pass the course to proceed.

4. Obtain a Dealer License

To become an autobroker, you need to get a used car dealer license. The process involves several steps:

Step 4.1: Prepare Documents

  • Business Name & Structure: Register your business name and legal entity.
  • Zoning Approval: Verify that your office location meets local zoning requirements for an auto business. An office address is mandatory even if you do not have a lot.
  • Surety Bond: Obtain a $50,000 dealer surety bond. This bond protects consumers from fraud or other illegal activities.
  • Live Scan (Fingerprinting): Complete fingerprinting and background checks.
  • Federal Employer Identification Number (FEIN): Acquire this from the IRS for tax purposes.
  • Seller’s Permit: Apply for a seller's permit from the California Department of Tax and Fee Administration (CDTFA).

Step 4.2: Submit Application to the DMV

  • Fill out and submit the Occupational License Application to the California DMV.
  • Include required documents, such as your business license, zoning approval, insurance, and proof of surety bond.
  • Pay the applicable application fees.

Step 4.3: Pass DMV Inspection

  • The DMV may conduct a site inspection of your business location to ensure it meets legal requirements.

5. Obtain an Autobroker Endorsement

While receiving your retail dealer license, applying for an autobroker endorsement authorizes you to act as an autobroker. This involves:

  • Filing Additional Paperwork: Complete the Autobroker Endorsement Application with the DMV.
  • Paying the Endorsement Fee: There is a separate fee for adding this endorsement.

6. Set Up Your Office

As an autobroker, you need an office (even if small) that meets DMV standards, including signage and necessary documentation. Make sure it is compliant with zoning laws and has a phone line dedicated to your business.

7. Insurance

Get proper insurance coverage, including general liability and any other policies required for your business operations. This is essential for protecting your business and customers.

8. Register for Additional Licenses and Permits

Depending on your business structure and services, you may need additional permits, such as a city business license or specialty sales permits.

9. Develop a Network of Dealerships

Since you’ll be brokering deals, build relationships with various car dealerships to provide a broad range of vehicle options for your clients.

10. Market Your Autobroker Services

Create a marketing plan to attract customers. Utilize digital marketing, referrals, and partnerships with local businesses to grow your client base.

If you have any questions please contact us and we'll be happy to help.