Vehicle Industry Registration Procedures Manual

Driver Education illustration

Section 7 of 38

Chapter 6: New Vehicles Sold by California Dealers

6.030 New Vehicles Sales by a Non-Dealer

Chapter 6 New Vehicles Sold by California Dealers

6.030 New Vehicles Sales by a Non-Dealer

A dealer license is not required for buying, selling, or exchanging midget autos or racers advertised as being built exclusively for children, or minibikes, totegoats, or similar vehicles, or vehicles of a type not subject to registration, such as special equipment and implements of husbandry (CVC §286).

Nondealers may buy, sell, or exchange a vehicle subject to registration if it is only incidental to buying, selling, or exchanging a vehicle not subject to registration.

Process the applications as transfers according to Chapter 11. Persons who prefer to operate as a licensed dealer may secure a dealer license.

A California dealer license is required for a California retailer of vehicles subject to registration.

Exception: A California dealer license is not required to sell a vehicle to a California resident who takes delivery in another state.

California manufacturers are not permitted to sell vehicles to persons not licensed for resale of vehicles (unlicensed dealers) (CVC §11713.3).

When an application is received without a dealer’s Application for Registration of New Vehicle (REG 397) y the California manufacturer or retailer is not licensed, as required, the following must be submitted:

The procedures below must be followed:

  • Send the application to the appropriate Registration Processing Unit (RPU) at DMV headquarters. The RPU will forward a copy of the application to the Occupational Licensing Branch for investigation of the California retailer by DMV.

Nonresident Dealers or Imports (CVC §4000.4)—Refer to Chapter 12, for basic nonresident vehicle registration requirements.