What is a primary requirement for the purchasing dealer in a wholesale transaction?

In a wholesale transaction, the purchasing dealer is required to hold a valid dealer license. This requirement ensures that the dealer is legally authorized to buy and sell vehicles within the state, complying with the regulations set forth by the DMV and state law. A valid dealer license signifies that the dealer is recognized as a legitimate business entity, capable of conducting transactions while adhering to all legal responsibilities, including tax obligations and consumer protection laws.

While a retail operation, transaction fees, and customer references may form part of the broader business practices in the automotive sales industry, they are not essential prerequisites for engaging in wholesale vehicle transactions. The primary focus of wholesale transactions is the operation between licensed dealers, which emphasizes the necessity of having a valid dealer license to ensure accountability and compliance with regulations.