Although the California DMV may be doing away with the Auto Broker designation altogether, Auto Brokers are still mandated to obtain a $50K auto dealer bond. the next question that most Auto Brokers have for me next is simply, why? While I agree that Auto Brokers never buy or sell a car as a Retail Auto Dealer would, they are still materially involved if they helped arrange a sales transaction and got paid for it.
Related FAQs
Unfortunately, every personal auto policy has an exclusion for commercial-type exposures. This means that when an accident happens, ownership of the vehicle will need to be proven. The purchase documents will show that the vehicle was purchased by the dealership. (If it was purchased [...]
The California DMV has a very specific carve-out in the law for wholesale-only auto dealers. The exception is meant to offer low-volume, wholesale-only dealers the opportunity to get lower limit auto dealer bonds. As a result, wholesale dealers save themselves some money. This is [...]
No. The DMV is tracking the number of sales you are making here to determine the limit of the auto dealer bonds for wholesalers. The number of cars you purchased is not factored in. That said, if you are buying too many cars and [...]
This is very common for businesses that make their money from the vehicles they own will tend to see the benefit of obtaining a wholesale-only license. They get the same auction access and have very little overhead due since they are not dealing with [...]
