HOW TO GET USED CAR DEALERS LICENSE

If you want to know how to get your used car dealers license, look no further!

Your used car dealers license is a few clicks away!

 

 

NOTICE: THESE TOPICS ARE THE MINIMUM REQUIRED BY THE DMV.  IN CLASS, THERE IS ADDITIONAL INFO WE TALK ABOUT AND ADDITIONAL TIPS THAT ARE NOT IN THE SUBJECTS BELOW.

THE PURPOSE OF THIS LIST IS TO SIMPLY GIVE YOU A ROUGH IDEA WHAT IS COVERED

---

 

1.  California Civil Code, Chapter 2B (commencing with Section 2981) of Title 14 of Part 4 of Division 3, relating to Motor Vehicle Sales Finance

• Conditional sales contract in writing
• All costs and terms of payment
• Signatures of buyer and seller
• Copies must be furnished to buyer

 

2.  Motor Vehicle Financing

• Terms of financing
• Allowable interest rates
• Computation of interest and conversion to Annual Percentage Rate (APR) and Computation of monthly payments

 

3.  Truth In Lending

• Disclosures
• Contract not executed
• Breach of conditional sales contract
• Spanish contracts
• Dealer carrying the contract
• Documentation Preparation Fee (DOC)

 

4.  Sales and Use Tax

• Collection of Taxes
• How to compute tax
• What is taxable

 

5.  Division 12 (commencing with Section 24000), relating to equipment of vehicles

• All safety equipment must be in compliance with Division 12
• Clarification of what is considered Division 12 equipment
• Division 12 safety equipment cannot be waived

 

6.  Advertising

• All media methods
• Disclosure as a dealer in all forms of advertisements
• Vehicle identified by VIN
• All terms of sale specified
• Illegal use of coupons or simulated checks
• Withdrawal of advertisement after vehicle sold
• Honoring the advertised price when a buyer is unaware of the advertisement

 

7.  Odometers

• Must be in working condition at time of sale
• Illegal to roll back
• Required notification when repaired
• Odometer disclosure by legal owner of repossessed vehicle

 

8.  Vehicle Licensing and Registration

• Types of California titles
• Transfer requirements
• Secure power of attorney
• Signature requirements on documents
• When registration fees required
• Transfer fees required
• Time requirements for transfer
• Administrative Service Fees (ASF)
• Out-of-state deliveries
• Quick titles
• Refund of excess fees

 

9.  Branch Locations

• When required
• When not required
• Application and fees required

 

10.  Offsite Sales

• Application and fees required

 

11.  Unlawful Dealer Activities

• Misusing special plates, or permitting their unlawful use
• Lending dealer supplies, and permitting misuse of license or books
• Unlicensed location
• Failure to pay Administrative Service fee (ASF)
• Submission of dishonored check to the Department
• Failure to transfer title
• Employing unlicensed Salespersons
• Bait and switch
• Bird dog fees

 

12.  Air Pollution Control Requirements

• Smog test required prior to a vehicle being offered for sale
• Smog requirements when vehicle is sold at wholesale
• Dealer allowed to charge $50 for a smog test and $8.25 for a certificate

   

13.  Regulations of the Bureau of Automotive Repair (BAR)

• When a dealer must register with the BAR

 

14.  Handling, Completion, and Disposition of Departmental Forms

• Report of Sale required
• Storage and security of Reports of Sale
• Completion of Report of Sale
• Five day dealer notice
• Window copy of Report of Sale
• Submission of Report of Sale and other documents to the Department

 

15.  Basic Licensing Requirements of Dealers

• Form requirements
• Bond requirements
• Required fees
• Renewal requirements
• Office requirements
• Display requirements
• Sign requirements
• License posting requirements at the dealer’s place of business CVC 11709.1  and 11709.2, Statements which must be posted, Automatic cancellations per Section 11721 CVC

 

16.  Use of Special Plates

• Who can/cannot use dealer plates
• When to use dealer plates
• Proper placement of dealer plates

 

17.  Federal Buyer’s Guide

• Federally mandated program
• Requirements for display
• Buyer must sign
• Buyer receives a copy

 

18.  Stolen Vehicle Prevention

• Indicia verification

 

19. DMV Enforcement Actions

• Administrative
• Criminal
• Civil

 

20.  Vehicle History Disclosure Requirements

• Condition of vehicle
• Known damage
• Odometer replacement
• Vehicles which were previous rentals or taxis
• Previous law enforcement vehicles

 

21.  WARRANTIES

• Lemon Law
• Service Agreements