Buying New Car in Los Angeles

The California Department of Motor Vehicles is not only concerned with the driving and licensing rules or the buying and selling processes. It also regulates car dealers and has specific parameters for them. A new car dealer in Los Angeles has to obtain license from the California DMV and fulfill the requirements as laid out by it.

New Car Dealer (Los Angeles)

Dealers who sell old cars need to undertake training and clear an exam before they can join the business. New car dealers are franchised by the automaker; therefore, they have to adhere to the company policies. The manufacturer is responsible for providing car information and letting them know about the selling points as well as features that need to be communicated to potential clients. It is best if the person is equipped with the knowledge of car dealing practices as the competition in the industry is growing. The salespersons hired by dealers also require a salesperson’s license.

To be in the new car sales business, the first step is to apply for a license. An aspiring dealer has to submit an application for it that can be downloaded from the internet. The application fee for a dealer’s license is $175 and is non refundable. To get relevant information of the application process one can look for the California dealer handbook that is easily available online or can be obtained from a local DMV office. The handbook provides general information and specific requirements for getting legal ownership of an automaker franchise.

Those applying for a dealer’s license undergo a thorough background check. This includes checking the criminal history and moral standing of the applicant. Those with uncertain records are not allowed in the business. The state examines various factors and may require business proof, business documentations and license before it grants the dealer license. After the submission of necessary paperwork, the DMV can take 120 days to issue a license. In the meanwhile, the status of an application can be checked online.

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