California DMV-Certified Auto Dealer License Class
Our New San Rafael Headquarters & Classroom Location
The Dealer License Class
Our Dealer License Class, called the DMV "Pre-Licensing Class," teaches you how to get your dealer license, how to use it
to buy and sell vehicles (including at Dealer Auctions), how to use dealer plates, how to export vehicles,
and more. DMV requires you take this six hour course to get your dealer license and that it be taught live, not on-line. Dealers renewing their
licenses can take the on-line course, called Continuing Education
We offer our Dealer License Class multiple times per month in Northern and Southern California. Our schedule and class registration forms are below.
Classes & Registration Once you complete the course, you will have an whole year to submit your
license application to the DMV for approval. Approval times vary, from a few days to a few weeks, depending upon how busy your local
DMV inspector is.
Cost
The cost of our class is $125.00. Some may offer a lower price, or offer you something for "free" to entice you to take their class.
We believe the more important issue is the value you receive, not simply the amount you pay. We feel it is better to spend a few dollars more and get the
best start possible in your new business venture. Just as in auto racing, if you start down the main straight a tenth of a second quicker than your
competitor, and you carry that advantage down the entire straight, you will be leading by 10 times that amount by the next corner. The right start is key.
So why should you choose our school? The same reason you would pick the best race car, or the best mechanic to prepare your car, results.
We have been providing the Pre-Licensing
Class to thousands of successful students for over a decade. Most of our referrals are from former students, the California Department of Motor Vehicles,
and real customers who have bought and sold cars with us - people who already know us. We educate you, not hustle or "sell" you, on how to get and use your
dealer license to your maximum advantage. You will receive hard copy materials in class. You will also receive ongoing access to continually updated and
expanded web-based materials and tools. You will receive objective vendor recommendations, including dealer bond companies, insurance companies, etc.
Every class, regardless of location, is taught by Art Hebert. Mr. Hebert is an automotive law attorney and founding
member of Motorsports Market. He has given live presentations to some of the world's leading automotive executives, as well as tens of thousands
of automotive enthusiasts and journalists. Every class is also held in a high quality, comfortable,
learning environment. See "Locations" below. We also offer the only money-back guarantee in the industry.
Locations
Sacramento Photos
Orange County Photos
San Rafael Photos
Oakland Photos
San Jose Photos
Modesto/Salida Photos
Ontario Photos
All our course dates, times, and addresses are at the bottom of this page.
Dates, Times, and Locations
Private classes can also be arranged at your location in the San Francisco Bay Area for $300.00.
You can contact us to set up a private class.
Advantages to having a Dealer License
Getting into dealer-only auctions
Buying vehicles at wholesale dealer prices
Buying vehicles with auction company financing
Paying no sales tax on your vehicle purchases
Paying no registration fees on your vehicle purchases
Using dealer plates to drive your vehicles without registering them
Making money doing what you enjoy
Writing off your expenses
Doing it part time or work it into full time
Saving significant money buying vehicles for yourself, friends and family
Selling locally, or exporting to other countries
Buying at the auctions and selling on Craigslist, E-Bay, or your own website
Brokering vehicles with none of your own money invested
Not getting caught selling without a license and being barred from getting a license in the future.
Driving around in great vehicles and then selling them at a profit.
Dealer License Types and Requirements
Vehicle Dealer
A vehicle dealer is someone who buys, sells, trades, or arranges the purchase, sale, or trade of vehicles in return for some compensation or benefit.
This can be done full or part time. People who sell their own cars, which they bought and used as their personal vehicles,
are not considered dealers. To buy and sell at the wholesale auto auctions, you must be a licensed dealer.
Types of Dealer Licenses
Wholesale: A wholesale dealer license allows you to buy at the dealer auctions and from private parties. The DMV requires wholesale
dealers to have an office, but there are no sign, nor vehicle display area, requirements. Wholesale dealers can sell to other dealers, they can sell/export
vehicles to foreign countries, and they can broker sales to the public. See the discussion about "Broker" below. A wholesale dealer can also obtain
dealer plates.
Retail: A retail dealer license allows you to buy at the dealer auctions and from private parties. The DMV requires retail dealers
have an office, a 2 foot square sign, and a vehicle display area big enough for two vehicles. Retail dealers can sell to other dealers and the general
public. They can also sell/export vehicles to foreign countries, and they can broker sales to the public. See the disucssion about "Broker" below.
Retail dealers can also obtain dealer plates.
Broker: The Auto Broker's Endorsement (which is an add-on to your dealer license) allows you to arrange the sale of vehicles owned
by others and get paid for it. A broker can act on behalf of the seller, helping them sell their vehicles. A broker can also find vehicles for buyers
and help them buy the vehicles. Brokers are sometimes also called "Auto Buying Services." A broker can be paid by the buyer, the seller, or both. To be a
licensed auto broker, you apply for either a wholesale or retail dealer license and the Auto Broker's Endorsement at the same time. This is a simple
matter of checking the proper box on the DMV dealer application form and paying an additional $50.00. We recommend you get the Auto Broker Endorsement
because it is simple and inexpensive, and it gives you an additional way to sell more vehicles and make more money. Remember, you do
not own vehicles you broker so you do not have any money tied up in them, nor do you have to store or display them, which saves you even more money.
The DMV requires brokers to have an office, and a 2 foot square sign. There is no vehicle display area requirement. Brokers can also obtain dealer plates.
Vehicles That Require a Dealer's License to Sell
For a list of vehicles and products that require you to have a dealer license to sell, and those that do not,
see Dealer Vehicle & Product List.
Steps to Becoming a Dealer
1. Complete a live, six hour, DMV Pre-Licensing Class. This class teaches how to become a dealer, how to get into dealer
auctions, and how to buy and sell vehicles. It must be taken live, not on-line. The fee is $125.00.Classes & Registration
2. Pass a 40 question test with the DMV. The fee is $16.00. The Pre-Licensing Class will prepare you for this test.
We will give you a pre-test during our class to insure you are ready.
Sample Test Questions
3. Download and complete the Dealer License Application forms. Dealer
Application Forms The Application fee is $150.
4. Select a Location for your Dealership & Take Photos
To obtain a wholesale dealer license all you need is an office.
To obtain a retail dealer license, you will need an office, a display area big enough for two vehicles, and a two foot square sign with
your name and address on it, posted permanently outside.
Auto Brokers need an office and a sign, but no display area.These location requirements are covered in detail in class, including ways to
overcome obstacles, and in some cases, even allowing for home offices.
5. Apply for a Local Business License.You can obtain a business license at your local city or town offices in their tax and license
division. Some cities have applications on-line. Fees are often a small percent of your annual gross sales. For example, in Oakland the license fee
rates are forty cents ($.40) for each one thousand dollars of gross receipts, or gross payroll, with a minimum fee of $74.00 if total annual gross
receipts are less than $ 74,000.00.
6. Apply for a Seller’s Permit. You can do this by filling out an application in person at one of Board of Equalization field offices.
You can also download the application beforehand and mail it, or deliver it in person, to a Board Field Office.
These permits allow dealers to buy vehicles tax free. Seller’s Permits are usually issued the same day they are submitted. Help in completing the form,
if needed, is available at the Field Offices.
7. Get “Live Scan” Fingerprints. “Live Scan” is an inkless electronic fingerprinting process where your fingerprints are electronically
transmitted to the Department of Justice for completion of a criminal background check. The costs generally range from $18 to $25.
Live Scan Locations
8. Apply for a Fictitious Business Name - If you want one. If the name of your dealership will be something other than your
personal name (example: “West Coast Auto Sales”), you will need to file a fictitious business name statement with your local County Recorder’s Office.
You can often find your county’s filing procedure and forms by searching for “Fictitious Business Name Filing” on-line and adding the
name of your county to the search terms. Basically, you will publish a notice in a local paper for 30 days advising that you are doing business under
the name you select. After 30 days you send proof of that publication to the Recorder for filing. Costs are under $100 if you do it yourself, or $175
to have a service do it.
9. Obtain a Surety Bond. DMV requires dealers to get a $50,000 surety bond. The going rates generally range between $1,000 - $2,000 per
year for a $50,000 bond. In our current economy these rates have been fluctuating quite a bit, so shop around. If you have very good credit, or
purchase a bond for a two or three year period, the rates are less. Established dealers with good credit, no complaints on file with DMV, and no court
judgments against them, often pay half these rates or less. Note that motorcycle-only dealers and wholesale dealers selling less than 25 vehicles per
year need only a $10,000 bond. Going rates for a $10,000 bonds generally vary between $200 and $350 per
year.Bonding Company List
10. Obtain a Signed copy of your Lease, or Rental Agreement. This will be submitted with your dealer license application. If you
own the property, proof of ownership may be required. Your local DMV Inspector will let you know.
11. Corporation/Partnership/LLC. If you are one of these types of entities you will need to provide a copy of your articles of
incorporation, corporate minutes, or other documents showing officers, shareholders and managers with a 10% or greater interest in the business with
your dealer license application. If you are the only owner (sole proprietor) you do not need to do this step.
12. Submit Completed Application for Approval. Give your application to your local DMV Inspector. Then ask them how long it will take
for their review and approval. Often it takes between one and two weeks. It can also happen more quickly, or more slowly, depending upon the
Inspector’s current workload.
13. Inspection. After reviewing your application, your Inspector will contact you to set up at time to meet you at your location to
inspect the premises. The Inspection is not a surprise and only takes a few minutes. This final step is often the easiest because you will have
already met the physical location requirements in order to complete your application. When the Inspector has finished looking around, they will hand
you a temporary license and you are ready to go! You will receive a formal license in the mail.
Questions? We Are Here to Help.
Motorsports Market has been offering the DMV Pre-Licensing class for over ten years. We have helped thousands get their dealer
licenses. We are happy to answer any questions you may have before, during, or after the course. Just call us at 800-980-1967, or
e-mail us.
We will also give you tips and insights into the business that will save you time, money
and aggravation. We don't just teach the class, we are licensed dealers too.
For more information about the course, how to register, and links to helpful resources, please see below.
Instructor
Formula One Drivers Justin Wilson, Mark Webber,
and Art Hebert Racing for Jaguar at Indianapolis
Our class is taught by Art Hebert, an attorney specializing in automobile dealership law. He is also
a consultant to auto manufacturers,a prototype vehicle test & development driver, and one of the most
successful vintage race car drivers in the U.S. Art has presented live seminars to tens of
thousands of automotive consumers throughout the U.S. He has also presented seminars to some of the world's leading automotive
executives, journalists, and engineers, including those from Lexus, Mercedes, Maserati, Toyota, General Motors,
Ford, Volkswagen, and others. Art provides a very informative, and entertaining, class.
General Motors' Bob Lutz and Gary Cowger
“Your presentation was excellent!
It was superb!”
Gary Cowger,
Former President of General Motors
North America
Recent Student Testimonials
Hi Art,
I wanted to drop a line and thank you for teaching the class. There sure was a lot of information to go over,
but so much of it was new regardless of my prior experience. Now I've been to more classes for insurance, real estate,
notary classes, you name it, to know the bad from the good, and the good from the excellent. Your class was excellent. It was
presented in a well thought out manner, a make sense approach, and was accompanied by the class book which is refreshingly
complete and useful after the course.
Richard Rose
I attended another Pre-Licensing school a couple years ago but did not complete
the licensing process at that time. Your class was much more informative and helpful
than the other class.
Alan J. Park
Hi Art,
I just want to drop you a note to tell you that I have become an auto dealer today. I finally did it by following the steps you taught me in class.
Today is an exciting day for me and I'm on my way to success in auto industry.
I couldn't have done it without you and your excellent course. THANK YOU !
Frank Wu
Thanks for the great class. It was really an awesome experience! Really! You made everything simple and to the point.
When I walked into class I literally knew nothing about this industry and business. But from your great mentoring, and ability
to make everything understandable, I learned a lot.
Thanks Art!!
Rick Prasad
Course Book, Resources, and Links
Motorsports Market Course Book
Our course book provides you the rules and requirements you need
to know to set up and operate your dealership. It includes fee
charts, sample form documents, and many examples of how to conduct
dealership tasks. This will be one of the most used books at
your dealership.
Valuable Resources List
This is a list of important resources and providers for dealers.
It includes contact information for form companies, important
websites, the DMV e-mail alert system, the Board of Equalization
(for free tax information and advice) and much more. This is
included in our course book.
Helpful Links
Below are helpful links to help you get started with your dealership.
Used Dealer, and Auto Broker, Application Forms:
These are the official DMV forms you will need to complete to
get your dealership license, and auto broker license, if you
want that too. These are PDF forms that you can fill out on-line,
print, and submit to the DMV to obtain your license.
http://www.dmv.ca.gov/forms/ol/ol248u.pdf
How To Complete An Application For A Vehicle Dealer's
License: The official DMV step-by-step guide to filling
out the dealer license application forms. A great tool!
http://www.dmv.ca.gov/vehindustry/ol/ol_handbooks/ol248.pdf
DMV Handbook of Registration Procedures: This is a great guide
to preparing the DMV paperwork when you sell a vehicle.
http://www.dmv.ca.gov/pubs/reg_hdbk_pdf/toc.htm
Dealer Contracts and Other Dealer Forms: Below are three of
the major form providers to dealers in California. You can go
to their websites and obtain a free booklet showing you all
the forms they have available.
BPI Auto Forms: https://www.bpiautoforms.com/
Reynolds & Reynolds: http://reysource.com/
ADP: http://www.dealersuite.com/DSHome/index.jsp
Dealer Auctions: This is a comprehensive list of Dealer Auctions
in California. It includes not only addresses and contact information,
but also what types of vehicles (salvage to highline), what
manufacturers are represented at each auction, and when the
vehicles will be auctioned. You can also register for these
auctions on-line and bid on-line as well.
Dealer Auctions
Dealer Bond Companies: To shop for the best dealer bond rates, visit
our Dealer Bond Page for a list of bonding companies to chose from.
If you are a bonding company that would like to be added to our page, would like to post your rates, and would like to provide
links to your application forms for our students, please contact us.
Dealer Insurance Companies: Although DMV does not require proof of insurance to issue your dealer license and
dealer plates, you will want to get at least minimum liability insurance to cover your dealer plates for when you use them to drive
your vehicles. Proof of this insurance will be required by some dealer auctions too.
You can check out a sample auto dealer insurance company, what they offer, and what they charge, at
www.dealercover.com. Once you determine what level of coverage you would like and the typical cost for it, then contact your own
insurance company to see if they offer similar products. You may get a better rate as their pre-existing customer. If you are an auto
dealer insurance company that would like to post your products, rates, and provide links to your application forms for our
students, contact us.
California Vehicle Code Book: This contains many
of the laws regulating dealers, plus other auto-related laws such as traffic and speeding violations.
Use this book to help run your dealership, and to defend against traffic tickets. You can use the
On Line Vehicle Code for free, or
purchase a hard copy of the vehicle code on-line. You can also pick one up
at your local DMV. The cost for the hard copies is $9.00.
Frequently Asked Questions
This is a list of the questions students and new dealers have
most frequently asked us over the past 10 years. It covers such
things as what to do with the DMV paperwork if someone returns
the car, how to make corrections on your DMV forms, how to get
late registration fees removed, etc. This is included in our
course book.
Course Preview
To preview what you will learn about in our course, check
out our On-Line Course Book.
There you will find an abbreviated version of our course book to review. It has a complete
index of topics that you can click on to learn more about. You can
use our Course Book Search Engine to find answers too. Do not be overwhelmed by what you see. We will review these
subjects in the Pre-Licensing Class. We break everything down into simple, easy to understand, and east to remember concepts.
This is key to helping you pass the DMV test and to confidently, and successfully, use your dealer license.
Test
DMV requires you to pass two tests with a score of 70% to get
your dealer license. One you take at the end of our course, and
the other one you will take at your local DMV Inspector's
office. The tests are very similar and cover the exact same material.
So why do you have to take two? The first test you take with us
to make sure you understand the basics of setting up and operating
your dealership. The second test you will take at your local DMV
Inspector’s office to prove to them you did attend a certified
class and that you know the basics.
Sample Test Questions

Do not stress about passing the test.
We will teach you everything DMV requires you to know to get your license in a simple and understandable way.
If you can remember things like a dealer license is valid for two years, or that a dealer can charge a maximum of $50.00 for
smogging a vehicle, or that seatbelts are a required safety item, you can pass the test. We have been doing this for over a decade
helping thousands of people get their dealer licenses. Not one student has ever been sent back to us by DMV for re-training
to pass the DMV test. We train you right the first time. We are also the only school that guarantees you will pass the DMV test
or your money back. See details below.
No Pass - No Pay Guarantee
Our class is 100% guaranteed. If after taking our class you do
not pass the DMV's Pre-Licensing test, you can re-take our class
as many times as you like at no cost. In addition, we will provide you extra instruction, special test
study guides, and further assistance, all at no additional cost,
to insure you pass the DMV's test. We are committed to getting
you a passing grade on the DMV test. If you do not pass the DMV
test, we will give you a 100% refund. Motorsports Market is the
only class that offers this guarantee. If you want to be a dealer,
we will get you through the test. That is our job.
Class Dates & Times
Northern California Oakland Office
456 8th Street
Oakland, CA 94607
(800) 980-1967
Classes are held on Saturdays from
9:00 a.m. to 3:00 p.m.
Private Classes can be provided at your Bay Area
location. Please contact us for details.
January
Saturday, January 9th
February
Saturday, February 13th
March
Saturday, March 6th
April
Saturday, April 17th
May
Saturday, May 8th
June
Saturday, June 19th
July
Saturday, July 10th
August
Saturday, August 7th
September
Saturday, September 18th
October
Saturday, October 9th
Northern California Sacramento Office
1215 K Street, Suite 1700 (The Esquire Plaza Building)
Sacramento, CA 95814
(800) 980-1967
Classes are held on Tuesdays and Fridays from 9:00 a.m. to 3:00 p.m.
Private Classes can be provided at your Bay Area
location. Please contact us for details.
January
Friday, January 8th
February
Friday, February 5th
March
Friday, March 5th
April
Friday, April 2nd
May
Friday, May 7th
June
Friday, June 11th
July
Friday, July 16th
August
Friday, August 6th
September
Friday, September 10th
October
Tuesday, October 5th
Northern California San Jose Office
2570 N. First Street, Suite 200
San Jose, CA 95131
(800) 980-1967
Classes are held Mondays, Tuesdays, Thursdays, and Fridays from 9:00 a.m. to 3:00 p.m.
Private Classes can be provided at your Bay Area
location. Please contact us for details.
January
Friday, January 29th
February
Friday, February 19th
March
Friday, March 19th
April
Friday, April 23rd
May
Friday, May 14th
June
Monday, June 14th
July
Friday, July 30th
August
Friday, August 27th
September
Thursday, September 23rd
October
Tuesday, October 19th
Northern California San Rafael Office
4310 Redwood Highway, Suite 400
San Rafael, CA 94903
(800) 980-1967
Classes are held Mondays, Tuesdays, Wednesdays, Thursdays, and Fridays from 10:00 a.m. until 4:00 p.m.
Private Classes can be provided at your Bay Area
location. Please contact us for details.
January
Monday, January 4th
February
Monday, February 8th
March
Friday, March 26th
April
Monday, April 5th
May
Monday, May 3rd
June
Monday, June 7th
July
Friday, July 2nd
July
Monday, July 26th
August
Tuesday, August 24th
September
Thursday, September 16th
October
Wednesday, October 13th
Southern California Orange County Office
Wells Fargo Tower
2030 Main Street, Suite 1300
Irvine, CA 92614
(800) 980-1967
Classes are held on Tuesdays and Fridays from 10:00 a.m. to 4:00
p.m.
December
Friday, December 11th
January
Friday, January 15th
February
Friday, February 12th
March
Friday, March 12th
April
Friday, April 16th
May
Friday, May 21st
June
Friday, June 18th
July
Friday, July 9th
August
Friday, August 20th
September
Tuesday, September 14th
October
Friday, October 22nd
Modesto/Salida Location
4909 Sisk Road
Salida, CA 95368
(800) 980-1967
Classes are held on Tuesdays, Thursdays, and Fridays from 9:00 a.m. to 3:00 p.m.
Private Classes can be provided at your Bay Area
location. Please contact us for details.
December
Friday, December 18th
January
Friday, January 22nd
February
Friday, February 19th
March
Friday, March 26th
April
Friday, April 23rd
May
Friday, May 28th
July
Tuesday, July 6th
August
Thursday, August 19th
September
Tuesday, September 28th
October
Tuesday, October 26th
Southern California Ontario Office
Waterside Center
3200 Guasti Road, Suite 100
Ontario, CA 91761
(800) 980-1967
Classes are held on Tuesdays from 10:00 a.m. to 4:00
p.m.
March
Tuesday, March 16th
May
Tuesday, May 11th
July
Tuesday, July 6th
September
Tuesday, September 21st
Reservations
Please fill in the form below to reserve a seat in one of our upcoming classes. When we receive your information, we will send you a
confirming e-mail to let you know you are registered for the class you selected.
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