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Dealer Course Book with Searchable Database



Below is an abbreviated version of our DMV course book To learn about what takes to become a dealer, click on the subject headings listed below. If you are already a dealer and have a question about a specific topic, try typing it into our Key Search Term box above to find the rules and regulations discussing that topic.


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Section 1: Basic Licensing Requirements

    Basic Requirement
    Required Forms
    $50,000 Dealer Bond
    Renewal Requirements
    California Vehicle Code Book
    E-Mail Alert System

Section 2: Main and Branch Location Requirements

    Location Requirements
    Display Area
    Sign Requirements
    Other Posting Requirements
    Branch Locations For Dealerships
    Notice of Changes to Dealer’s License

Section 3: Off-Site Vehicle Displays

    General Rule - No Off-Site Displays
    Exception - Off Site Display Permits can be obtained for Fairs, Expositions, or Similar Exhibits

Section 4: Temporary Branch Locations

    Temporary Branch Locations/Tent Sales

Section 5: Auto Brokers

    Definition of Auto Broker
    Auto Broker's Endorsement
    Auto Broker's Log
    Auto Broker Agreement
    Deposits & Refunds
    Trust Account
    Brokering Agreement & Fee
    Licensed Dealers Only
    Auto Broker Advertising

Section 6: Consignment Sales

    Consignment Agreement
    Consignment Agreement Required
    Consignment Agreement Key Terms

Section 7: Motor Vehicle Sales and Finance Act

    Conditional Sales Contracts:

Section 8: Motor Vehicle Financing

    Terms of Financing
    Computing Interest Rates
    Annual Percentage Rate

Section 9: Truth in Lending

    Contract Not Executed
    Breach of Conditional Sales Contract
    Foreign Language Contracts

Section 10: Sales and Use Tax

    Collecting Taxes
    What is Taxable
    Use Tax
    Board of Equalization Contact Information

Section 11: Vehicle Licensing and Registration

    Registration Fee Collection & Penalties
    Types of California Titles
    Completing Titles for Transfer
    Other Vehicle Transfer Requirements
    Power of Attorney
    Required Registration Fees
    Required Transfer Fees & Transfer Time Requirements
    Out-of-State Deliveries
    Out-of-Country Sales
    Quick Titles
    Excess Fee Refunds To Purchasers
    Dealer Bundle Listing

Section 12: DMV Forms

    Tips to Avoid Buying a Stolen Vehicle

Section 13: Stolen Vehicle Prevention

    Report of Sale
    Notice of Sale
    Notice/Temporary Identification
    Administrative Service Fees
    Wholesale Reports of Sale

Section 14: Federal Buyer's Guide

    Federally Mandated Program
    Buyer's Guide Display
    Copy to Buyer

Section 15: Vehicle History Disclosure

    Condition of Vehicle
    Known Damage
    Remanufactured Vehicles
    Vehicle History

Section 16: Warranties

    "Lemon Law"
    Implied Warranty of Merchantability
    Implied Warranty of Fitness

Section 17: Division 12, Safety Equipment

    Leased vehicles
    Wholesale transactions between dealers
    Safety Equipment List

Section 18: Odometers

    Working Condition
    Duty to Record Mileage
    Unlawful Actions
    Proper Repairs
    Vehicle/Vessel Transfer Form

Section 19: Air Pollution Control

    Smog Certificate Duration
    Smog Fee
    49 State Vehicles

Section 20: Bureau of Automotive Repair ("BAR")

    Bureau of Automotive Repair ("BAR")

Section 21: Advertising

    Advertising Defined
    Advertising Rules

Section 22: Special Plates

    Use of Special Plates
    Permitted Uses
    Impermissible Uses & Misuse of Plates
    Display of Plates
    Lost plates or Stickers
    Tow Dollies

Section 23: Unlawful Dealer Activities

    Unlawful Dealer Activities
    Failure to Maintain Adequate Bond
    Failure to Notify DMV of Change of Ownership
    Suspension or Revocation of Seller’s Permit
    Misuse of Special Plates
    Lending Dealer Supplies
    Unlicensed Location
    Failure to Pay ASF
    Dishonored Checks
    Failure to Transfer Title
    Employing Unlicensed Salespersons
    Bait and Switch
    "Bird Dog Fees"
    Failure to Separate Business Operations

Section 24: DMV Enforcement Actions


Section 25: Continuing Education Requirements / Recent Changes

    Document Preparation Fee Increase (V.C. 11713.1)
    2008 Vehicle Registration Fee Increases
    Contract Language Translation - New Requirements
    Disabled Person Placards and Plates
    Ordering Reports of Sale
    Car Buyers' Bill of Rights (AB 68)
    Bill of Rights Kit

Section 26: Frequently Asked Questions (F.A.Q.)

    Frequently Asked Questions (F.A.Q.)
    Corrections on Report of Sale Forms (REG 51)
    “Unwind”, Void/Canceled Used Vehicle Report of Sale
    Used Vehicle Rollbacks
    Electronic Lien and Title (“ELT”)
    Customer Demands Title
    Multiple Transfers
    Duplicate Title Application
    Transfer of California Registration Only (Goldenrod Registration)
    Transfer Only
    Bonded Transfers
    Non Resident Vehicle Transfers
    Vehicles with Unavailable Records
    Waiver of Fees and/or Penalties
    Title Errors and Corrections
    Temporary Operating Permit
    Transporter Permit
    DMV Forms