California Auction License

California Auction License

If you have made a firm decision that you want to obtain a California auction license, then it is advisable to accumulate certain knowledge and information. Of course, before starting a journey to your dream career, it is essential to get to know what requirements you need to meet and what actions you should take to reach your aims. So, let us get straight to the subject.

However, first things first. Before we start, let’s immediately put it here that there are 2 main types of permits in the state:

  • A retail auto trader
  • A wholesale

While a wholesale license enables one to sell only new cars at the trader-only auctions, a retail auto trader gives its owners an ample opportunity of selling pre-owned vehicles in public trades, as well as dealer-only auctions. Commonly, on deciding on the type, applicants should remember that both of them allow their owners to buy and sell at dealer’s trades, buy from clients, and export the vehicles outside of the country. The only difference is that the Wholesale permit does not allow selling to consumers, family, or friends.


There are certain conditions you need to meet if you want to get closer to your aim. Here are some of the main conditions that you need to satisfy before moving forward with your goals:

  • Register your business
  • Have an established place of business
  • Obtain a seller’s permit
  • Have a bank account for your business
  • Have a surety affiliation of at least $50, 000
  • Submit fingerprints
  • Fill in the application form

Surety Bond for California Auction License

While talking about obtaining an auto dealer’s license in the state, it is important to talk about the surety bond. In fact, in almost all the states it is an obligatory condition in the way of getting the permit. All in all, it is a kind of pledge for acting by state laws. It ensures that anyone will further be protected and compensated for any possible damages or the dealer’s fraud actions.

In California, this affiliation is a legal agreement among three main parties. It is generally a contract including the DMV of California, the dealer, and the bonding company. Commonly, the average calculated bond is equal to $50.000.

Training and education

Anyone who wants to get an auction license in CA is to take special classes to prepare for the process. The classes are mainly online. Mostly, there is an option of choosing classes with an instructor or without the one, joining the training on your own time.

After completing the training, applicants pass an in-person test. It is generally held in the DMV’s office. Mostly, there are only three attempts at taking the test. It is possible to retake it every other week after the failure. The obligatory fee is $16.

After completing the test, applicants are ready to file the full packet of their application form to the DMV office.

Payments for California Auction License

As in almost all states, In CA as well certain fees are obligatory if you want to go through the process. The application fee is $175 and it is non-refundable. There are also other fees like the $16 examination fee and payment for a dealer plate which is about $92.


For refreshing, first of all, a renewal application should be filled in. The renewal is $125.

Zara N

Zara N

Zara is a content writer and a psychologist. She loves both of her professions with passion. The spheres she has chosen seem totally different. Anyway, she has so far succeeded in combining and linking them. Zara works as a family psychologist daytime and in the evenings she immerses in writing. Besides working as a content writer, she has managed to write her own books. She is an author of a psychological book for parents called “Some issues on upbringing”. She also writes therapeutic stories for children. Right now Zara is writing (or trying to write) her first psychological novel.