Deep state — California
The full California path for the license most new dealers need — the Used Vehicle Dealer (retail) — with every requirement cited and the Year-1 cost built from published figures, not copied from a roundup. Sellers of cars to the public start here; selling to dealers only? The path checker prices the wholesale route too.
| Requirement | California rule |
|---|---|
| Education | A 6-hour pre-licensing course from a DMV-approved education provider is required before you apply. Your completion certificate is valid for one year. |
| Exam | A written DMV exam after the course — 40 questions, 70% to pass. |
| Surety bond | $50,000 — Vehicle Code §11710. Dealer plates, if you want them, run about $92 each on top. You pay a premium (estimated $500–$1,500/yr), not the bond amount. Surety guides put the $50,000 bond from about $500/yr and the $10,000 bond from about $100/yr for strong credit. |
| Place of business | An 'established place of business' under Vehicle Code §11709: office, display area, and signage — the DMV inspects it, and your application needs photos of all three. |
| Renewal | Every 2 years — $125 renewal fee and 4 hours of DMV-approved continuing education. Your bond must stay in force the whole time; a bond reduced by a claim suspends the license until it is restored. |
| Cost line | Amount |
|---|---|
| DMV application fee | $175 |
| Family support program fee | $1 |
| DMV dealer exam fee | $16 |
| State-approved pre-licensing course Market prices at DMV-approved providers — California Dealer Academy and GotPlates charge $99 online, Dealer 101 charges $125. | $99–$125 |
| Bond premium, first year (estimate) | $500–$1,500 |
| Estimated Year-1 license-layer total | $791–$1,817 |
This is the license layer only: state fees, course, and bond premium. Rent, inventory, garage insurance where your state requires it, and local permits sit on top and vary too much to print honestly. The total above sums exactly the lines above it.
DealerSteps is a navigation guide, not a course provider. A 6-hour pre-licensing course from a DMV-approved education provider is required before you apply. Your completion certificate is valid for one year. Take that course only from a provider on your state's official approved list — our job is everything before, around, and after it: the packet, the lot, the bond, the auctions, and your first 90 days.
One payment, yours to keep. The Playbook is a navigation guide — it is not the state-approved course (where your state requires one, it walks you to the approved providers).
Not licensed yet and still selling? Check your count first on the California car-sale limit page.
The license layer — state fees, the state-approved pre-licensing course where the state requires one, and the first-year bond premium — totals an estimated $791–$1,817 for the retail path, summed line by line from the published figures on this page (checked October 18, 2026). Lot rent, inventory, and insurance sit on top.
A 6-hour pre-licensing course from a DMV-approved education provider is required before you apply. Your completion certificate is valid for one year. DealerSteps is a navigation guide, not a course provider — where a course is required, take it from a provider on the state's official approved list.
$50,000 for the retail path. Vehicle Code §11710. Dealer plates, if you want them, run about $92 each on top. You pay an annual premium — estimated $500–$1,500 — not the bond amount.