Frequently Asked Questions

How long does it take to get a license?

Many students complete the process and get their dealer license within weeks of taking the course. However, this is not a requirement. The DMV gives you a year from the date you complete the course to submit your license application.

What are the advantages to having a dealer license?

1. Access to dealer-only vehicle auctions
2. Purchasing vehicles at wholesale dealer prices.
3. Purchasing vehicles with auction company financing.
4. Paying no sales tax on your vehicle purchases.
5. Paying no registration fees on your vehicle purchases.
6. Using dealer plates to drive vehicles without registering them.
7. Making money doing what you enjoy.
8. Writing off your expenses.
9. Saving significant money purchasing vehicles for yourself, friends and family.
10. Selling locally or exporting vehicles to other countries.
11. Purchasing cars at auction, then selling them via EBay, Craigslist or through your own company website.
12. Brokering vehicles without investing your own money.
13.Driving a vehicle you enjoy, then selling it at a profit in the future.
14. This is important – not getting caught selling a vehicle without a license, which can cause you to be barred from obtaining a license in the future.

What are the types of dealer licenses?


A wholesale dealer license allows you to buy at the dealer auctions, and from other dealers directly. Wholesale dealers can sell to other dealers, and they can sell/export vehicles to foreign countries. Wholesale dealers cannot sell directly to the public. There are some additional wholesale dealer sales options and business models which we cover in class. To get your wholesale dealer license DMV requires an office. There is no sign nor display area requirement for wholesale. A home office can, in many cases, qualify as a location for a wholesale dealer license. Wholesale dealers can obtain dealer plates.


A retail dealer license allows you to buy at the dealer auctions and from private parties. Retail dealers can sell to other dealers and to the general public. They can also sell/export vehicles to foreign countries, and they can broker sales to the public with the Auto Broker Endorsement. See the “Broker” discussion below. The DMV requires retail dealers to have an office, a two foot square sign, and a vehicle display area big enough for two vehicles. Retail dealers can obtain dealer plates.


The Auto Broker Endorsement (which is an add-on to retail dealer licenses) allows you to arrange the sale of vehicles owned by others and get paid for it. Brokers don’t actually own vehicles. They merely arrange a sale between a buyer and a seller. The broker can act on behalf of the seller, helping them sell their vehicle. They can also assist buyers with finding and purchasing vehicles. Brokers are sometimes also called “Auto Buying Services.” Brokers can charge the buyer, the seller, or both for their services. You can get the Auto Broker Endorsement from the DMV with your retail dealer license for an additional $100.00. Only licensed retail dealers can get the Auto Broker Endorsement. The Auto Broker Endorsement has several nice advantages. It provides dealers getting started a way to buy and sell vehicles without having to invest their own money in the vehicles. The paperwork you fill out when brokering is also quite simple. In addition, there is no display area requirement for brokers, which helps keep your overhead low. There are a number of further advantages to brokering which we cover in class. To become a dealer/broker, DMV requires an office, and a two foot square sign, but no display area. Brokers can also obtain dealer plates.

What about the test?

The 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.