Common Questions

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Below are some FREQUENTLY ASKED QUESTIONS for Students who want to get a dealer license:


When and Where are the classes and how much do they cost?

Our Classes are located in Burbank  Click Here for dates

Do I need to bring ID to Class?

Yes, you need to bring a Valid California Driver's License or Valid California ID for a certificate to be issued. Sorry No Exceptions.

How long is Cass Certificate Valid for:

Your Certificate is good for one year.

Does your school Guarantee that I will pass the DMV test?

Yes, if for some reason you fail the dealer license test at the DMV, you may retake our dealer license class again at no charge, within one year of the initial class.

Do I need to take a class to become a dealer in California?

Yes, the DMV will not let you become a dealer or take the dealer license test unless you have a certificate from a dealer education program.

How do I get a dealer license?

First, spend more time on this website.  Check out all our links and you will become familiar with the initial process.  There is valuable information throughout our website.  The smartest thing you can do is take our class first.  You will learn details on how to get a license and you will also learn all the dealer laws you need to know about for your test and for running your business.  Our 6-hour course is a one-day course, so once you sit for class, you'll walk away with your certificate.  You will need that certificate to take a 40-question test with your DMV Inspector.  In class, we provide a list of DMV Inspectors if you need it.  After you take the test, you need to file a completed application with the DMV.   After approval, you will be issued your dealer license.


I am shopping around for a class, is it important who teaches my class?

Of course it is!  Our instructors staff consists of attorneys, licensed car dealers and licensed salespersons - experts on dealer laws and experts in the car business.  We know the car business from the inside out, and have run successful dealerships.  Doesn't it make sense that if you want to get a dealer license that you learn from a real dealer, who has bought and sold cars for a living? 


Your instructors have bought and sold countless cars, trucks, boats, motorcycles, and watercraft.  We have bought and sold everything from Geo Metros to Hummers.


Will a criminal conviction prevent me from getting a dealer license?

Maybe.  If you have a criminal conviction that involves a crime of moral turpitude (a dishonesty crime such a embezzlement ) you may have a problem getting a dealer license.  There is a different application process called an abbreviated application if you are in such a situation.  If you have any questions regarding a prior conviction, call our LAW OFFICE as we may be able to help you.  Not everybody with a criminal conviction is turned down.  


What if I don't pass the DMV test?

First of all, don't be so negative!  We're confident you'll pass as long as you study your notes you took in class, study your handout, study our practice exam and our test tips.  If for some reason you do not pass, it's no bid deal.  You can take it over again, but be prepared to pay another $16 DMV test fee.  You'll also have to wait a week to re-schedule and if you don't pass in 3 shots, you will have to sit through our class again (we won't charge you to sit in again). If you fail the exam, You may retake our dealer license class again at no charge, within one year of the initial class.


What will I learn in the 6-Hour Pre-license Class?

Below you will find just a few of the topics that will be discussed in class:

  • The required procedures for issuance of a license
  • New Red Flag Rules
  • Automotive Finance Procedures and completion of forms
  • Special Finance Procedures ( Buy Here - Pay Here )
  • State Board of Equalization Procedures
  • How to complete DMV Forms when selling a car
  • Advertising Laws
  • Safety Laws
  • Federal and State Laws that regulate dealers
  • Unlawful Dealer Activities
  • Retail Dealer Procedures
  • Wholesale Dealer Procedures
  • Dealer License Plate Rules
  • Vehicle History Disclosure Rules
  • Federal Buyer's Guide Procedures
  • How to pass the DMV test

What materials will I receive in Class?

  • A Detailed Class Outline
  • All of the required postings and signs
  • Forms and Exhibits for class discussion and review
  • 40 Question Practice Test
  • A list of all the Dealer Auctions in the United States
  • A list of sources for help after class

Can I buy and sell in other states?

Yes.  You can BUY from any dealer auction in the United States.  (In fact, in class, we provide a nationwide list of dealer auctions. )  You can SELL to any person in any state.  However, you cannot go to their state to conduct the actual sale.


Can I buy and sell cars on the INTERNET?

Yes you can!  There is no law forbidding the purchase or sale of cars across state lines.  Of course, all the same California laws apply as if your customer were in your office, so be careful what you place in your internet site.


How much does it cost?

It actually costs less than you might think to get a dealer license.   $180 average initial DMV licensing fee, which includes a dealer plate, $16 DMV test fee, $100 average per year for city business license, $50 average one-time fingerprint fee, You need a Seller's Permit, which is free.


How much money can I make  in this business?

It depends what types of cars you buy and the price range, but generally, you will make $500-$1,500 average profit for each LOW PRICED car, $1,500-$2,500  average profit for MID PRICED cars, and $2,500-$5000 average profit for HIGH PRICED / LUXURY cars.   

The key to making good money will always depend on whether you do your "research" on the market.  We have our own  fool-proof method for doing this "research".  It's NOT just a matter of looking at a Kelley Blue Book.  It's much more involved that that, and after class or during a class break,  we will talk about our "cutting edge" research process to ensure that you succeed, or if you wish, you may purchase a "Market Research Book" in our online dealer store.

Why should I attend LA DEALER SCHOOL?

Our instructors staff consists of attorneys, licensed car dealers and licensed salespersons - experts on dealer laws and experts in the car business.

In class, we will provide you with written information that you will find very useful.  This information will consist of a list of auctions, list of DMV Inspectors, easy-to-follow handouts on how to sell a car step-by-step, in addition to information on how to get a dealer license step-by-step.  During class breaks, we provide very useful auction tips.  For an example of a tip, see our "Weekly Auction Tip" on this website.

I have some general questions about the car business that were not answered on this page, can I get them answered?

Yes. It is common for students to have many questions regarding the start up of their dealership.  

When you attend class, your instructor has set aside time, to answer any questions that you may have.




1999-2019 Los Angeles Dealer School - - Call us at:  1 (310) 227 - 6920

Our goal is to provide a superior class that exceeds California Vehicle Code requirements, for an affordable fee.  Our instructors staff consists of attorneys, licensed car dealers and licensed salespersons - experts on dealer laws and experts in the car business.