Who must obtain a dealer license in California?

In California, obtaining a dealer license is a legal requirement for individuals who sell or offer for sale more than five vehicles in a 12-month period that are not registered to them. This regulation is designed to ensure that individuals engaging in the sale of vehicles operate within the bounds of state law and adhere to consumer protection standards.

Selling vehicles beyond this limit typically indicates a business operation rather than a personal sale, thus necessitating the licensing. This rule helps maintain accountability among dealers, ensuring they comply with regulations related to sales practices, buyer protections, and proper handling of tax obligations.

While selling antique cars, operating a dealership physically, or selling vehicles for profit may involve different regulations or licenses, the primary threshold for requiring a dealer license is based on the volume of sales rather than the type or method of sale. This is why the specified criteria regarding the number of vehicles sold is crucial in determining the need for a dealer license in California.