Auction Dealers License and Obtaining a Dealer’s License Without a Lot

According to the Department of Motor Vehicles, a dealer that sells or exchange vehicles with other licensed dealers, is not required to have a display area for their vehicles. If you sell or exchange vehicles with other licensed dealers you would be categorized as a Wholesale Dealer or Wholesale Motor Vehicle Auction Dealer. While these licenses allow you to become a dealer without a car lot, they do come with their own specific regulations:

Wholesale Dealer

• You are unable to sell vehicles to retail purchasers
• You may only buy, sell or exchange used vehicles – this includes motor vehicles, motorcycles, and travel trailers.
• You do have the option to buy, sell, or exchange new or used trailers/ semi-trailers.

Wholesale Motor Vehicle Auction Dealer

• May offer vehicles for sale by bid only, to licensed dealers at a legitimate auction at a permanent location.
• You are unable to make facilities available to any other person for the purpose of the sale or auction of vehicles.

For additional dealer information, the Department of Motor Vehicles has a variety of resources you can find here at the Department of Motor Vehicles website.

If you are considering applying for your Wholesale Dealer or Wholesale Motor Vehicle Auction License, a good place to start is by reviewing the eLicensing User Guide provided by the DMV, as well as our Bond Application Checklist.

If you have any questions please feel free to reach out to one of our bonding specialists at 1-855-252-9660.