Who is mandated to have a dealer license according to VC 11713.1?

Study for the DMV Used Car Dealership Test. Prepare with flashcards and multiple choice questions. Each question includes hints and explanations. Get ready to ace your exam!

According to VC 11713.1, anyone who is involved in the buying or selling of vehicles for profit is required to have a dealer license. This requirement ensures that all dealerships operate under state regulations, which include maintaining consumer protection standards, ensuring the transparency of sales transactions, and complying with various legal obligations.

The intent behind this mandate is to create a structured marketplace where buyers can have confidence that the vehicles they are purchasing are coming from reputable sources that adhere to the laws governing vehicle sales. It serves to regulate the automotive industry, preventing unlicensed individuals or entities from profiting through vehicle sales without the necessary oversight and consumer protections in place. This licensing requirement helps to maintain order in the marketplace and protect consumers.

The other choices do not align with the specific criteria set by the law. For instance, individuals selling vehicles without intention of profit or those selling gifted vehicles are not considered dealers by definition, which is focused on profit-driven sales. Similarly, auto manufacturing companies, while they may sell vehicles, operate under different regulations and are not included in this definition of needing a dealer license.

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