I want to get a dealer license so I can speculate and acquire cars with the intent to flip them. Apart from forms, testing, and fees, one needs to show they have the proper facilities to store cars and run a business. Is there a way to “convert” your home garage or otherwise get around the separate space requirements mentioned on the CA DMV website (what’s the minimum that works?):
The display area of the principal place of business must be of sufficient size to physically accommodate vehicles of a type for which the dealership is licensed to sell.
The display area must be clearly for the exclusive use of the dealer for display purposes only.
Additional display areas are permitted within a radius of 1,000 feet from the principal place of business and any licensed branch location without being subject to separate licensing. However, such display areas must also meet the signing requirement as identified in CVC §§11709 (a). Title 13, 270.08, 270.08 (a) and 270.08 (b).
Inspect signs (not required if wholesale only dealer).
Signs must be of a permanent nature, erected on the exterior of the office or on the display area, and be constructed or painted and maintained so as to withstand reasonable climatic effects and be readable as provided for in CVC §§ 11709. CCR, Title 13, 270.06.
A temporary sign or device may suffice when a permanent sign is on order. Evidence of such order must be submitted to DMV prior to issuance of a temporary permit or license.
You have to get an office in an area that allows zoning for a car dealership and it has to have space for at least two vehicles. No way around it, you cant use your home/apartment as your dealer office to bypass the requirement
Prob easier to get a Montana llc to do what you’re looking to do. Lawyers specialize in setting it up for you. Lots of loopholes using that, not sure how California is with it but I know lots of people that have them there. Worth looking into…
I suggest you look into a dealership Co-Op. You can share the expenses required to support a dealership license via a LLC made up of multiple partners.
Hi Calvin. I like to buy older cars like Miatas and Del Sols and Z cars (and lease 4xes!), fix them up, and drive them around a bit, then flip them. The 9.5% tax in LA county melts the profits (if any), so my solution is a dealer license.
I wanted to do this about 15 years ago, but concluded it wasn’t possible in LA. Talked it over with a local dealer, who confirmed what a pain / impossibility it was (Dennis from Dennisbuyscars.com - awesome inventory).
