How many vehicles must wholesalers sell per year to qualify for a reduced bond?

To qualify for a reduced bond, wholesalers must sell fewer than 25 vehicles per year. This requirement is designed to differentiate between larger dealers who engage in more substantial business activities and smaller wholesalers who operate on a limited scale. By setting this threshold, regulators can encourage smaller operations while ensuring that they still adhere to relevant bonding and licensing requirements. The reduced bond reflects the lower risk associated with these smaller dealerships, which typically engage in less extensive sales throughout the year. Understanding this limitation is crucial for wholesalers aiming to manage their operational costs effectively while remaining compliant with DMV regulations.