Benefits of Becoming a California Vehicle Dealer
July 18th, 2025 by Jessica Biarbe
Becoming a licensed vehicle dealer in California comes with several potential benefits, especially for those interested in the automotive industry. Whether you are looking for a full-time business or want to own a part-time business with exclusive perks, here are the key benefits:
ACCESS TO DEALER ONLY AUCTIONS
- Entry to dealer-only auctions, where vehicles are often sold at or below market value such as Manheim or Adesa Auction Houses.
- Buying power for better profit margins as compared to buying from public sources.
BUSINESS LEGITIMACY & FLEXIBILITY
- You can legally buy and sell vehicles for profit. Options include used cars, motorcycles, RVs, or ATV's depending on your license type.
- You may specialize in niche markets (e.g., luxury, electric, vintage)
- Potential to start a small business and grow into a full dealership or expand into other auto-related services.
- Anytime you buy and sell vehicles for profit you are considered a dealer in California. Obtaining a vehicle dealer license allows you unlimited transactions and potential income.
- Option to work from a home office if you're a wholesale dealer.
Tax and Business Deductions:
- Vehicle related expenses
- Office/rent
- Advertising
- Travel
- Equipment/tools
You may register as an LLC or Corporation for added legal protection and tax benefits. Check with your CPA.
DEALER PLATES:
You may obtain dealer license plates which allows you to:
- Drive unregistered vehicles legally for business/demo purposes so long as that vehicle is in dealer inventory. (exceptions to stay in compliance with proper usage)
GROWTH, NETWORKING, AND INDUSTRY ACCESS
- Access to industry resources, training, and networking opportunities
- Opportunity to scale your business – maintain and improve efficiency with healthy margins. Ensure high quality and customer satisfaction.
As a dealer you have the potential to build connections with:
- Other Wholesale or Retail dealers
- Lenders and finance companies
- Repair shops
- Detailers and Transporters
Brand Building and Marketing:
Starting a dealership gives you the chance to build a recognized brand, attract repeat business and establish a customer base through trust and quality.
FINANCIAL & PROFESSIONAL PERKS
- Profit potential from vehicle sales, financing, warranties, and service plans. We teach you how to start lean and grow smart.
- Tax exemptions when purchasing vehicles for resale.
- Building your business relationships can help lower costs and improve operations.
- Dealers can offer financing through banks or In House Financing known as buy here pay here dealer.
- Ability to take trade-ins as part of dealer, giving flexibility and profit potential.
TURN YOUR PASSION FOR CARS INTO OPPORTUNITY AND ACTION
Are you ready to unlock the power of buying and selling cars? At 24-7 Dealer Training Specialists we give you the roadmap to real success in the automotive industry. Take the first step toward financial freedom and own your own Vehicle Dealership.
Enroll today at Usedcardealerclass.com, click on get a new dealer license, or call 951-833-8398.
WHY CHOOSE 24-7 DEALER TRAINING SPECIALISTS – CHECK OUT OUR GOOGLE REVIEWS
- DMV approved Detailed Curriculum
- Practice Tests
- Convenient Online classes either Live Zoom Webinar or Self-Paced
- Certificate of Completion – Ready for DMV submission
- Industry tips beyond the class
- AVAILABLE FORMER DMV LICENSING INSPECTOR/INSTRUCTOR FOR QUESTIONS
Posted in: Auto Dealer Business