wholesale indiana car dealer license scheme is PROBABLY not legal in california

it is true

as a licensed car dealer

you may sell in all 50 states

BUT

dmv regulations in california

along with the state board of equalization guidelines

clearly state:

IF YOUR NEXIS IS WITHIN CALIFORNIA

YOU MUST BE A LICENSED CALIFORNIA CAR DEALER

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DMV Place of Business Inspection

After you have arranged an appointment with an Occupational Licensing Inspector he or she will inspect the place of business where the dealer conducts business.

  • The office of the principal place of business and each location of the dealership must be established to the extent that its construction is not temporary, transitory, or mobile in nature, except that a trailer coach office is acceptable providing it is not part of the dealer’s vehicle inventory being offered for or subject to sale while being used as an office of the dealership and otherwise meets the requirements of the Vehicle Code. The place of business is a place actually occupied either continuously or at regular periods by the dealer. Section 320, CVC.
  • Inspect all books and records pertinent to the business. CVC Section 320 (a)CVC Section 1670, and CVC Section 1671 and CCR Title 13, Section 270.00, 270.02, 270.04 and 272.00

out of state car dealers operating at a location in california are illegal

you residency and voter status could impact the nexus argument

DMV CAR DEALER ATTORNEY

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You have a representative who operates under your authority to sell or take orders in California for any goods
or merchandise. (See California Revenue and Taxation Code section 6203(c)(2).)
Example: Your company does not have inventory in California or employees who sell in this state. Instead, you
use an independent representative who sells your product along with many others. The representative works
on a commission-only basis.

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Court decisions
To look up court decisions on nexus (engaged in business) issues, see: www.findlaw.com/casecode/index.html.

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Who is Liable for California Use Taxes?

Persons who are “engaged in business” in California (as defined by Revenue and Taxation Code section 6203) are responsible for collecting and remitting the sales or use taxes on all sales of tangible personal property (unless the transaction is otherwise exempt). Circumstances where a retailer is considered to be engaged in business in California, commonly referred to as “nexus,” for sales and use tax purposes include (but are not limited to) the following:

  • Maintaining, occupying or using any type of office, sales room, warehouse or other place of business in California. This includes use that is temporary, indirect or through an agent or other representative.
  • Having any kind of representative operating in the state for the purpose of taking orders, making sales or deliveries, installing, or assembling tangible personal property.
  • Making repairs or providing maintenance or service to property sold, whether by employees, agents or other representatives.
  • Deriving rentals from a lease of tangible personal property located in California.

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California seller’s permit requirements–dealers, wholesalers, and brokers
Dealers and wholesalers
The BOE requires motor vehicle dealers and wholesalers to register for a seller’s permit. When you sell or lease
vehicles, merchandise, or other tangible personal property in California, even temporarily, you are required to hold
a seller’s permit. If you hold a seller’s permit you must report and pay sales and use tax due on your returns.
Brokers
A broker is a retailer if you have the power to transfer title to property, and exercises it, either:
• By holding title to the property before its sale,
• By completing a bill of sale to the buyer under power of attorney from the legal owner, or
• By getting a signed bill of sale from the legal owner and delivering it to the buyer.
When entering any transactions in which you have the power to transfer title to a vehicle, you are a retailer in those
transactions, and must hold a seller’s permit.
A true broker’s authority, however, is limited to getting offers from potential buyers and conveying the offers to
vehicle owners for their acceptance. As a true broker, you are not liable for the tax, and not required to hold a seller’s
permit. In transactions in which buyers deal with a true broker, the buyer will be liable for use tax.
Note: As a broker, you may collect the use tax due on a purchase of a vehicle, as a convenience to your customer.
If you collect the use tax from a buyer and provide a receipt, you (the broker), not the buyer, are liable for the use
tax amount paid and must pay that amount to the BOE. If the BOE later discovers that additional use tax is due, the
buyer is liable for the additional tax. This procedure allows financing the tax in the purchase price of the vehicle and
helps avoid future misunderstandings about the buyer’s use tax liability.
Buyers; be sure to keep a receipt for any use tax paid to a broker.
If a broker provides this service, they must forward the use tax to the BOE with a statement that shows:
• Name and address of buyer
• Full purchase price of vehicle
• The vehicle identification number (VIN)
You can report your purchases subject to use tax by using eRegistration available on our website at www.
boe.ca.gov. eReg is also available in our field offices. Please contact our Taxpayer Information Section for assistance
at 800-400-7115.

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HERE ARE SOME ANSWERS FROM THE INDIANA FOLKS

offering wholesale dealer licenses without having a nexus in california


What does your company do for me?

We provide you with a legal business address and a REAL, not virtual office (don’t fall for this scheme from others). You are assisted by our knowledgeable staff with necessary paperwork to prepare your wholesale dealer license application as well as answer any questions about the auto wholesale business. You receive guidance from experienced auction professionals who conduct sales for the world’s largest wholesale auto auction company while being provided with an inside track to success in the auto wholesale industry. View our Services page for more information.
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What are the requirements for the Auto Wholesale Dealer Licence program?

  • Office at Indiana Wholesale Dealers, Inc.
  • Dealer Bond of $25,000
  • Valid Certificate of Dealers Insurance
  • Two (2) color copies of your valid driver’s license

For a Bond and insurance quote we can refer you to an insurance professional to help you set up your dealers insurance.

For additional questions regarding requirements, please call us at (219) 595-5172 or send us an e-mail at info@indianawholesaledealers.com. One of our sales professionals will be happy to provide you with more information.
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What are the costs to get an Indiana Wholesale Dealers License?

Many other companies will advertise as little as $199 and up to $685 startup costs to have an office. What they only tell you in the fine print is that’s just their registration processing fee! Look out for additional rent and services fees charged by our competitors. Ask them what you’ll have to pay by the time you are licensed?

Indiana Wholesale Dealers, Inc. is committed to offering you, our client and lessee, the most competitive and complete service available. Our full time staff of professionals will handle the processing of all the documents with different governing bodies to establish your business with the State of Indiana. You will be provided with an organized and detailed binder including all the documents we have completed to obtain your licensing.

After the initial payment Indiana Wholesale Dealers Inc. will not ask for any additional service charges or lease payment until you are licensed by the State.

  • Your bottom line on costs

    Included in your Initial Payment of $698.24 to Indiana Wholesale Dealers Inc.:

    • $200 obtains your lease and reserves your office until your license is approved and your plates arrive in our building
      (no further rent is charged until your plates arrive)
    • $300 Security Deposit
    • $84 Administrative Fee
    • $26.52 Merchant Certificate – paid by us to State of Indiana
    • $87.72 Registration of your S-Corporation (optional) – paid by us to State of Indiana
  • Insurance and Bond

    As little as $1700 annually for the combined minimum required insurance and bond (Payment plans are available from most insurers). We will refer you to expert agents, proficient in the needs of the Indiana Wholease Dealers.

  • Licensing

    City License $100 - Dependin on which of our properties we were able to place you in, you may be required to appear in person to submit this application.
    Indiana Wholesale Dealer Licence and 2 plates $20 to $70 prorated to the State’s expiration calendar. the Indiana Secretary of State will issue an invoice for the exact amount due when your license application is accepted.

  • Rent

    $300 per month if paid on or before the 1st of the month.

    No additional rent is collected until the day the plates arrive in your office and will then be prorated to make all rents due the first of the month.

For additional questions regarding start-up costs, fees, or requirements, please call us at (219) 595-5172, or send us an e-mail at info@indianawholesaledealers.com. One of our sales professionals will provide you with additional information.
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Why is it important to have a real office?

Recently the Indiana Secretary of State suspended and fined 26 dealers $2500 who were told by their landlord they had an office that didn’t actually exist. It is your responsibility to make sure the office exists. When you are comparing landlords online be sure to look for a physical address and search for the satellite view to see if there is any possibility the address can house the offices. When you make the required trip to Indiana to complete the licensing requirements it is a good idea to visit the office you are leasing.
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How do I know I’m dealing with a reputable landlord?

This is a big one and difficult to distinguish with all the disinformation that exists. Ask questions and do some homework. How long has the landlord been in business? What is the background of the landlord? Does the landlord publish a privacy policy to protect the sensitive information you are supplying to them? Do they have any third party accreditation or oversight to protect you from unacceptable business practices? Indiana Wholesale Dealers is accredited by the Better Business Bureau. We offer a privacy policy you can understand. We have been conducting Wholesale Auto Auctions in Chicago, Indianapolis, and Milwaukee since 1981. Our staff has a combined 87 years of experience in the Auto Auction business. The Executive Officers have been licensed Indiana Auctioneers since 1979 and have been Indiana Residents their entire lives. With our history and reputation inside the Wholesale Auto Auction Industry, there is no one more reputable or better positioned to help you.
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Is it important for the landlord to own the property he is leasing to you?

Absolutely. Unfortunately not all people offering the services we offer are as reputable as we are. Here today, gone tomorrow is a common theme. One competitor was leasing storage units that were in no way compliant until they were caught. The only person that it cost was the dealer who was put out of business and fined. What happened to the landlord? Who knows? He’s gone.
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Why not become a member of the companies offering membership in an LLC?

Here again you need to get a few questions answered. We suggest you consult with an attorney if this is an option you are considering. If any other member of the LLC conducts themselves inappropriately will all of the members suffer? Are they paying and reporting their taxes? Will you be responsible for them if they are not? How can you develop your own credit at the auctions? Owning your own business makes you the only person you have to worry about. It’s your business reputation at stake. Can you trust it to a complete stranger doing business under the same license you are?
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How long does the wholesale dealer license process take?

From the time of submittal, usually around five (5) weeks.

Week 1-2:

We complete all of the necessary paperwork to prepare your applications for the Local, State, and Federal Government agencies which are included in the following activities:

  • Lease and application signing for your office space from Indiana Wholesale Dealers, Inc providing your company with a legally compliant business address
  • We guide you to Insurance personnel for competitive pricing on Bonding and Dealer Insurance coverage
  • We register your Small Business Corporation (your choice) with the Indiana Secretary of State
  • We apply to the Internal Revenue Service for your Employer Identification Number (EIN also known as FID)
  • We apply to the Indiana Department of Revenue for your Retail Merchant Certificate (required for license and provides Sales Tax exemption)
  • We complete your application for a Wholesale Dealer license and up to two (2) dealer plates
  • Meeting with the Secretary of State’s investigator is schedules to review rules. We will notify you in advance of the date. It is held less than eight (8) miles from our office and Hammond City Hall. You must be present for this meeting.
  • As soon as convenient, you submit in person the City of Hammond Licence Application we will provide you.

Week 2-3: 

The day all necessary documents are accumulated, in our office, your application will be sent to the Secretary of State by overnight delivery.

Week 4-5: 

After the review and verification of your application by the state you will be invoiced by the Dealer Division to advise you of the prorated fees required to issue your Wholesale Dealer license and plates. You send them the invoiced amount and they ship the license and plates. Once received in your office we will provide you with a packet to register with and attend wholesale dealer auctions nationwide.
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What does the insurance and bond cost and where do I get them?

Dealer liability insurance plus a $25,000 Bond is a requirement. Insurance costs can be as little as $1450 annually. Flexible payment plans are available for this premium. Bond cost (with good credit) is as little as $250 annually. For competitive quotes, we will refer you to insurance experts, proficient in the needs of Indiana Wholesalers.
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What if I reside in another state?

You do not have to be an Indiana resident. Your office at our facility provides the business address required to fulfill licensing compliance. You may need to make a trip to Northwest Indiana. Some communities we offer services in require a personal appearance fot the initial city approval. After you are licensed 120 days, the Secretary of State conducts random inspections of dealer records which must take place in your office. You, the dealer, or your legal representative must be present for the inspection. You will be notified in advance of the date and location. For out of state traveler’s we are the closest facility of our kind. Located just 40 minutes from Chicago O’Hare Airport (ORD) with easy access from I-80/94 or I-90. Everything you need to do will take place within a few miles of our office. This trip could be required to submit your application for the City License. We will notify you in advance if this will be required.
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Is it legal to drive in or out of state with Indiana dealer license plates?

You are legal in all 50 states as a registered dealer. Registration and proof of insurance must be present with the plates at all times.
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Where can I buy wholesale cars and trucks?

There are hundreds of dealer only auto auctions nationwide. Here are some of the major ones; keep in mind there might be many other privately owned auctions in your area that you can have access to once you are licensed. Auctions
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What wholesale auto auctions can I attend?

After registering with any dealer auction (we provide a list), you are able to purchase vehicles. Sale days differ with each auction, so check their schedule. Many auctions today have online access, in which you are able to view upcoming sales events and purchase online.
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Are there warranties on autos at auction?

Warranties and guarantees are offered at auto wholesale auctions. However, auction rules vary greatly! It is in your best interest to study each auctions set of rules. Pre and post sale inspections are also available. Inquire with each auction.
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How can I retail a wholesale vehicle?*

In order to process a retail transaction for a vehicle, the retail transaction* must be processed by a licensed retail dealer in the United States. Your retail transactions can take place through our retail division. We will have all necessary forms for the completion of your sale. Our retail professional can assist you with general questions to help with titles and processing.

Retail is a service we maintain for our dealer clients only. They are wholesalers. We hold a retail license at our facility specifically and exclusively for this purpose. We do not buy and sell cars at that location for our profit. To prevent any competition for you, there is no inventory at our office building.

We do all the paper work and supply a temporary plate. The fee per transaction is $100. The buyer, title, and vehicle to be sold, must come to our property and we collect Indiana Sales tax.

All transactions are AS-IS. Titles, with available space for two reassignments, must be present for all transactions and will be provided to buyers when funding is confirmed by our bank. At that time funds from the sale will be distributed to our Dealer Client.

Please call us at (219) 595-5172 or email at info@indianawholesaledealers.com for all costs and fees. Our sales professionals will be happy to provide you with additional information.

*This program is exclusive and only available to our dealer clients with valid leases in an Indiana Wholesale Dealers, Inc. facility. 
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Can I export cars to other countries?

If you have the contacts to sell overseas but do not want the hassle of purchasing vehicles at retail prices, paying taxes, and registering cars every time, then a wholesale license is the solution. With your wholesale dealer license, you do not have to register vehicles when you buy them at auctions or pay a sales tax. There is no limit to how many cars you can sell. Become a wholesale auto dealer with Indiana Wholesale Dealers, Inc. to take advantage of export opportunity. Purchase from hundreds of wholesale auto auctions nationwide to find the right vehicle for your client. As an exporter, you will need to move vehicles around. Your dealer plates make this legal. For more information on exporting vehicles, visit the U.S. Customs web site.
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Can I buy salvage autos?

The salvage and rebuilt car and truck market is huge. Large profits are often realized by mechanics and body repair men offering rebuilt vehicles in the wholesale auto marketplace. Some of the largest salvage vehicle auctions have facilities within minutes of our offices. Once properly licensed by the Indiana Secretary of State, Dealer Division, through the simple application process provided by Indiana Wholesale Dealers, Inc., you would have full access to the wide range of vehicles they offer.
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Can I buy damaged cars for parts?

There are many insurance auctions where you can by cars in need of repair. As a wholesaler, you do not have to pay sales tax or register the vehicles. You may purchase vehicles with clean titles but also salvage and rebuilt in some states. Many auctions specialize in salvage and damaged vehicles. However, each state has different rules in regards to purchases of such vehicles. Inquire with that particular auction about qualifying with your Indiana Wholesale license.
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I’m not comfortable providing my information over the internet. What should I do?

Rest assured that our registration page is SSL secured (note the https at the start of the address) with a viewable Certificate of Authority to ensure safe transmission of your information. Otherwise, please feel free to contact one of our customer service representatives at (219) 595-5172. They will be happy to assist you over the phone.
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How can I get started?

Once you submit the registration form you are on your way to becoming a licensed Indiana Wholesale Dealer. Start Here!
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like most things in life

if it is too good to be true

it is probably a lie or illegal

dont fall for any car dealer license scheme

come to the leader in california

car dealer education

gotplates.com

800-901-5950

carwoo has closed it doors, will truecar be next ???

TrueCar has had a rollercoaster ride in the automotive retail industry over the past few years. However, it appears things may be taking a turn for the worse (both for TrueCar as well as its participating dealer clients). Read on, as I reveal their new policy changes that will have a negative impact on dealers, as well as my in-depth interview with a top eCommerce Directors about this change.

Having aggregated so much data to benefit consumers over the years, TrueCar challenged the retail market to deliver competitive pricing to their online shoppers. However, as more shoppers funneled into their site (and partnering sites), it was obvious that dealers needed to take notice of the TrueCar machine. Fairly quickly. dealers began taking issue with the way TrueCar came about some of the consumer-facing data that was being shared. Then the “dust-up” happened. Industry leaders such as Jim Ziegler and Jerry Thibeau led the charge against TrueCar, and urged dealers to cease the data extraction they were allowing TrueCar as it was only being used to bite them in the proverbial backside. TrueCar (after an unnecessarily long battle to prove what they were doing was acceptable), reconvened with others in the industry and reengineered their site to be more dealer-friendly. Since then, TrueCar has once again dominated the third-party lead segment (with the help of venture capital backing and strong corporate relationships with affiliate partners). My dealers, for instance, all seem to have significant success with TrueCar opportunities. However, there were questionable charges that frequently popped up. In most instances, TrueCar relented and maintained that the “customer is always right”. In this case, their customer is the dealer. That is about to change.

The Bombshell:

As of September 1st 2013, TrueCar is altering their “Write-Off Policy” for dealers. Essentially, TrueCar states that their customers are so much more “deep-in-funnel” than all other lead providers, dealers on their Per-Sale payment model will no longer be allowed to request write-offs. Whether or not those sold customer originated in their CRM before becoming a TrueCar lead no longer matters. In other words, even if you sold a customer four vehicles in the past, and that customer submitted a lead on Edmunds the month prior that arrives in your CRM, AND comes in and speaks to a sales associate, leaves the dealership, goes on TrueCar, submits their information again, and inevitably purchases from your dealership, the dealer will be unable to request a full write-off.

I’ve attached a version of the new TrueCar Write-Off Policy, effective September 1st 2013, at the bottom. In the end, the dealer will have to pay. You will see that partial write-offs (up to $100) will be granted to those dealers on the Pay-per-sale model, but only for extenuating circumstances. Subscription-based dealers have no write-offs.

The Reason:

As an automotive consultant, I can see this policy change happening for only a couple of reasons. Let it be known that I did not once take to a public forum during the previously described “dust up” to wage war against TrueCar. I believe their business model was a profitable one, and sense consumer-facing data will rule our industry sooner rather than later. I made no indictments of them, but did educate the clients of DealerKnows about TrueCar’s initiatives. However, we did this during our normal, one-on-one consulting times and not online. I feel, though, as an advocate for our dealer industry, I should bring to light this policy change that could have a negative impact on both DealerKnows clients and all participating TrueCar customers. (They’ll know soon enough).

TrueCar states that they are not a lead generator, but simply a new consumer strategy with which to purchase automobiles from dealers. For that reason, if another lead provider sends a dealer a lead that predates the time TrueCar sends the same customer’s info, it doesn’t matter. TrueCar still deserves credit because the customer obviously prefers the TrueCar way of shopping, so they say. From the outside, it appeared TrueCar was back on their way to dominating the lead market, but this type of policy change must mean they are struggling internally with a cash flow problem or that they are just showing their true stripes. Maybe they are the cash-grabbing corporation they were originally assumed to be. It has to be one of those two reasons. Making this policy change will end up costing dealers more money. (At least, it will to those dealers that pay attention to the Per-Sale invoices they receive and attempt to legitimize said charges.)

This was admittedly brought to my attention by a respected eCommerce Director from one of our DealerKnows clients in Chicago. This individual prefers to remain anonymous. I thought I’d get his perspective on this policy change, how it affects his dealership, and his thoughts.

My Interview:

Joe: In a few words, tell me about how you viewed your relationship with TrueCar prior to this policy change?

eCommerce Director: I’ve had a 7-year relationship with them. When everything went down with TrueCar over a year ago, we got off the program for two months, but then back on. At the time, we had felt like they had gotten checked back into place and straightened up their act. They promised to be better dealer partners. We came back aboard and had relative success with them. We still didn’t close them at the rate I’d like, but made an additional 5-7 sales per month per store (about 25 sales total a month). Even with the $399 cost-per-sale and a lower margin than usual, this was in line with what I accepted. But I was writing off a lot of their supposed claimed sales.

Joe: How many TrueCar sales per month would you say were questionable?

eCommerce Director: 50%.

Joe: Holy crap!

eCommerce Director: Over the past year, we’ve written off half of the sales they attempted to take credit for. My friend at another store writes off 60% of his claimed sales. Whether they were duplicates, customers we were already working, past customers, owner referrals, or even if someone at the same address of a sold customer – roommate for instance – goes on TrueCar, they would attempt to invoice us for the sale. They’d just send the bill because their system will grab anything and everything that might possibly be a link and charge dealers for it.

Things got complicated six months ago when they attempted to charge me for phone calls that were coming from Yahoo Autos. Even if we hadn’t picked up the call, and even though TrueCar sent no info of this customer into the CRM, they would somehow match it up with sold customers from our database. I found this unacceptable and pushed to get away from receiving “phone leads”. If it doesn’t originate in my CRM from them, I have no way to verify its validity. So it is useless to me and I couldn’t, in good conscience, pay for those sales.

Joe: On average, what was your experience like getting write-offs?

eCommerce Director: Up until this last year, it was relatively easy. We didn’t have many serious arguments. The last 90 days it has been a battle though. They seem smug about writing something off now. More combative. I think they have investors trying to tell them how to make more money, and, just like last year, it slapped them in the face. Now, this Write-Off Policy is another sleazy way to extract dollars from dealers. They claim they never had a write-off policy before, and now they’re going to hit every dealer on Sept. 1st with the bad news, giving them no adequate time to make a decision. A good dealer partner would never hit a valued customer with a major policy change with no notice like that.

Joe: What do you think this Write-off Policy will end up costing your group additionally each month?

eCommerce Director: It’s $399 cost per sale and I was writing off 50% of the total sales. I was already paying for the 25 legitimate sales as a group per month. This policy change just bumped my cost for TrueCar an additional $10,000. That is a huge pill for any dealer to swallow.

Joe: Do you feel this has broken the relationship and will this affect the longevity of your partnership with them?

eCommerce Director: Right now, they’re on the chopping block. I’m just waiting for permission from the owners to rededicate the money elsewhere. I can spend $20g elsewhere and get 25 legitimate units per month, that’s no problem. And probably with higher margins. I’m not going to waste my time taking screenshots of customers to get only a quarter percent of the write-offs solely so they can double their profits. Not cool.

Joe: Why do you think TrueCar made this policy change now? Especially since they seemed to have won back the dealership trust they had lost during the “Kill the Beast” debacle?

eCommerce Director: I think back to how the founder of TrueCar was promising to be a better dealer partner in the future. The fact that we are a week away from this policy change date and the greater percentage of their dealer network doesn’t know about it proves to me that they don’t care about us dealers and don’t belong in this industry. That it is one year after a massive online, state, and national battle and they’re doing this undermining crap solely to double their own profits, it’s unbelievable. I don’t know how they’ll recover without, once again, getting knocked down by the dealer population and having to rethink their strategy.

I look at TrueCar as the spoiled only-child in a family that always got their way, would misbehave with no punishment. They keep misbehaving and misbehaving until their parents, in this case the dealers, give them a good spanking. (Not that I ever strike my kids, but you get the picture of what must happen to correct this negative behavior.) Only then does the child fall in line. Eventually, they’ll start getting spoiled and misbehaving again. It’s happening here.

Joe: Thanks so much for your input.

Click here to view The Write-Off Policy
Click here to view the updated FAQs to reflect the above policy

Joe Webb

President and Founder at DealerKnows
Husband and Father
Founder of DealerKnows Consulting
Co-founder of Dealer ThinkTank
Blurring the line between entertainment and education.


gamechanger ??? or outlaw renegade car dealer ??? dmv will decide for tesla motors

WalletPop EditorWalletPop Editor RSS Feed


Model S. Source: Tesla Motors.The comparisons between automotive stocks and Tesla Motors‘ (NASDAQ: TSLA) lofty valuation continue. But Tesla CEO Elon Musk insists that the company is an automotive tech company — not just an automotive company. Though the claim is odd, Musk is right that Tesla, and the other automotive players, aren’t necessarily driven by the same underlying dynamics. And this is the primary reason so many bears shorting Tesla’s stock continue to miss the point. Particularly, Tesla has three unique factors driving the company forward that other automotive companies can’t count on.

Exclusive Superchargers
Tesla’s charging stations aren’t the typical electric vehicle charging station. On average, Tesla’s Superchargers are about 16 times faster than most public charging stations. In fact, Model S owners can get a 50% battery charge in just 20 minutes at a Supercharging station.


Source: Tesla Motors.

Then there’s Tesla’s aggressive expansion of Superchargers to cover 98% of the U.S. population by 2015. Internationally, Tesla just began opening Superchargers in Europe, and already has 90% of the population covered in Norway.

The combination of faster charging speeds, convenient coverage, and exclusivity, not only sets the foundation for Tesla’s planned mass-market car, but it also gives the company a temporary competitive advantage. In a way, it hedges the company’s ambitious aspirations.

A swappable production strategy
This point is rarely brought up in both bullish and bearish Tesla investment theses, but it’s crucial to the company’s business model. Tesla cars are manufactured in a far different manner than traditional vehicles. They have one standard battery platform on which they can mount varying motors and bodies. Even more, Tesla’s motor is a paltry one-foot in diameter. This swappable production strategy could very well give the company an advantage in achieving production efficiencies.


Tesla battery platform. Source: Tesla Motors.

“When we designed the Model S, we created a platform. So it’s not just a single car; we created something on which we could build many cars, and we are able to leverage that and bring a car to market fast,” Musk explained at the Model X unveiling.

 

Musk has expressed aspirations to eventually achieve gross profit margins that rival Porsche. Before Volkswagen acquired the luxury sports-car maker, Porsche was reporting a gross profit margin of about 50%. Already, Musk says the company should hit its 25% gross profit margin target, excluding zero-emission vehicle credits, by the fourth quarter of 2013.

Capital infusion
Thanks to investor optimism for the stock, Tesla’s $20-billion valuation has infused the company with capital to aggressively invest in Superchargers, production, and international expansion. The valuation itself is a strategic asset to the company. Its $20-billion valuation means that management has even more cash than they had planned for to make necessary investments, or even ramp up production and expansion more rapidly.

Securing the future
All three of these factors are building the foundation for the company’s eventual mass-market affordable car. And each factor helps to secure Tesla’s spot among the big automotive companies — and change the auto industry forever.

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gamechanger??
outlaw renegade car dealer??
cutting edge??
unfair competitive practices??
DMV Investigations will decide
+++++
800-901-5950
got1

car dealers…..are you paying overtime to your salespersons ???

 BY LAWRENCE MILES

 

The California Court of Appeal has sided with CarMax in a key decision involving the “sales commission” exemption to California’s overtime law.   In Areso v. Carmax, Inc., the Court held that a pay plan that had a base payment plus “commissions” of about $150 per vehicle sold satisfied the exemption requirements.

California law has a “commissioned sales” exemption to the general overtime statute.  The commissioned sales exemption exempts from the overtime compensation requirement “any employee whose earnings exceed one and one-half (1 1/2) times the minimum wage if more than half of that employee’s compensation represents commissions.”    The case revolved around Labor Code 204.1 which permits California car dealers to pay commission wages once a month, an exception to the general requirement that wages be paid not less than twice a month in California.  Section 204.1 defines “Commission wages” as “compensation paid to any person for services rendered in the sale of such employer’s property or services and based proportionately upon the amount or value thereof.”    The Court wrestled with the question of whether CarMax’s payments to the salesman of about $150 constituted commission wages “based proportionately on the amount or value” of CarMax’s property or services sold.

The employee argued that CarMax’s flat payment made without regard to the price of the vehicle sold did not meet the statutory definition of “commissioned wages,” relying on several cases includingKeyes Motors, Inc. v. Division of Labor Standards Enforcement, 197 Cal. App. 3d 557 (1987) (held: service mechanics not exempt from overtime law).   The employee argued that since the flat payment was made without regard to the value of the vehicle sold, it was not a commission.  The CarMax Court rejected this contention, finding that there was an alternative prong to the test – the amount (number) of the property or services sold by the employee.  The Court further rejected the claim that the flat payment constituted payments for  ”piece work,” observing that the employee was engaged in the “sale of property,” consistent with the statutory requirement.

The Court concluded by noting that the employee’s compensation would rise and fall in direct proportion to the number of vehicles sold, and thus satisfying the commissioned sales exemption to the state’s overtime law.

About Lawrence Miles
Mr. Miles is founding attorney with The Miles Law Firm, A Professional Corporation. The firm practices civil and business law, including extensive work in the auto and aviation industries. For more information, please email Mr. Miles at larry@milesfirm.com or review the Firm’s website.

car dealer license questions and answers

Vehicle Dealer Frequently Asked Questions

Listed below are the most frequently asked questions. This list is not all inclusive nor is it intended to be.

If you have any questions, please contact your local DMV Inspector or call (916) 229-3126.

Where can I obtain application forms?

All application forms and further licensing information can be downloaded from the

Apply For An Original page.


Who do I contact to get a dealer’s license?

You may obtain the necessary information and application to apply for a dealer’s license from any DMV Inspector in your area,

or see Vehicle Dealer’s License Forms page.

Applications for a used vehicle dealer’s license, or wholesale only dealers license,

will not be accepted by the DMV Inspectors without proof of completion of the Used Vehicle Dealer Education Program

and proof of successfully passing the dealer examination or proof of being licensed as a vehicle dealer within the past 36 months.

For testing appointments and information regarding a dealers license, please call one of the DMV Inspectors in your area.


Where do I file my application?

Application packages for vehicle dealers are submitted to your local DMV Inspector.


Where do I call if I have questions?

If you have general licensing questions you may call (916) 229-3126.


What is an abbreviated application?

An abbreviated application allows applicants, with conviction(s), to discover if a license will be issued or reissued

without incurring the possible unnecessary expenses of obtaining a bond,

establishing a place of business and/or attending a dealer education program.

See Abbreviated Applications page.


What is the New Motor Vehicle Board Function?

The New Motor Vehicle Board (NMVB) operates in a quasi-judicial capacity to resolve disputes (protests)

between franchised new vehicle dealers (vehicle, motorcycle, ATV, and recreational vehicle) and manufacturers.

These disputes typically concern franchise terminations or modifications,

establishments or relocations of a same line-make franchise within the dealer’s relevant market area (10 air miles),

and reimbursement for warranty or franchisor incentive program payments.

The NMVB also hears and considers appeals presented by a new vehicle dealer or manufacturer

after any final decision of the Director of the department that adversely affects the occupational license of the appellant,

such as the suspension or revocation of the license. Vehicle Code sections 507, 3050-3079.

Lastly, there is a Consumer Mediation Services Program that attempts through informal mediation

to resolve disputes between consumers and new vehicle dealers and manufacturers.


Who is the New Motor Vehicle Board?

The New Motor Vehicle Board consists of nine members. Four of the appointed members are new motor vehicle dealers,

engaged in business for a period of not less than five years preceding their appointment.

The remaining five appointed members are public members not affiliated with any licensed dealer.


How long will it take for the department to process my application?

The average time for processing an application may be up to 120 days

to allow the department time for background check and processing of the license.


Does the department issue temporary permits?

Pending the satisfaction of the department that the applicant has met the requirements for the license,

the department may issue a temporary permit for a period not to exceed 120 days while it completes its investigation

and determination of all facts relative to the qualifications of the applicant for the license. CVC Section 11719


What is the license renewal period?

The vehicle dealer license is renewed annually for the first year after receiving the original license;

and then biannually based on the month the original license was issued.

Renewals should be made before the expiration of the license.

If you do not renew your license before it expires, you may renew your license within thirty (30) days

following the expiration date by paying the renewal fee and a penalty equal to 100 percent of the original application fee.

Renewals will not be accepted for licenses that have been expired for more than 30 days. CVC Section 11717(d).


How do I renew my license?

About 90 days before the expiration of your license you should receive a courtesy notice for renewal.

After you complete the courtesy notice, you will need to mail your renewal form and fees to:

Department of Motor Vehicles
Occupational Licensing
P.O. Box 932342 MS L224
Sacramento, CA 94232-3420

If you do not receive a courtesy notice please call (916) 229-3126

or you may download the renewal form from the Renew Your License page.


How do I get additional plates, replacement plates, stickers only, or a duplicate registration card?

You will need to fill out form OL 22 for additional plates,

replacement plates, stickers only, or a duplicate registration card.


What happens to my supplies if I cease doing business?

When licensed dealers cease doing business, or a bond,

cancelled by the Surety Company is not reinstated by the cancellation date,

the dealers shall immediately surrender the business license, special plates, registration cards,

and all report of sale books to the DMV Inspector Office.


What happens if there is a change in ownership?

When a licensed dealer has an ownership change,

all supplies must be surrendered to the Department of Motor Vehicles

and the submission of an original application for license is required.

A new application will require the submission of new fees and a new bond.


How do I make a change to my existing license?

When a licensed dealer changes location, adds a branch office, changes the firm name,

or makes a change in the corporate structure,

the licensee must immediately notify the DMV Inspector,

and submit the appropriate forms and fees for the change.

Licensed dealer changes matrix
Type of Change Required Forms Fees
Officer change OL 15OL 29, Copy of Corporate Minutes or Statement of Officers stamped by the Secretary of States Office, and Fingerprint Live Scan receipt $70
Name change OL 21OL 124, Certificate of Appointment, Corporate Minutes, Bond Rider $70
Address change OL 21OL 124OL 902, copy of lease or rental agreement $70
Add a branch OL 21OL 124OL 902, copy of lease or rental agreement $70$225 for New Motor Vehicle Board (if applicable)

Note: OL124 is needed only if new cars, new motorcycles, new ATV’s, new recreational trailers, or new motor homes are being sold.


Are there any signs I must post?

Yes. Along with the “Established Place of Business” Sign,

you will need the following posted on the premises:

“…in a space conspicuous to the public in each and every location,

the license issued by the department to the dealer and to each salesman employed by that dealer” CVC section 11709(a)

Every dealer who displays or offers one or more used vehicles for sale at retail shall post a notice

not less than 8 inches high and 10 inches wide, in a place conspicuous to the public, which states the following:

“The prospective purchaser of a vehicle may,

at his or her own expense and with the approval of the dealer,

have the vehicle inspected by an independent third party either on or off these premises.” CVC section 11709

Additionally, every dealer shall conspicuously display a notice not less than eight inches high and 10 inches wide,
in each sales office and sales cubicle of a dealer’s established place of business
where written terms of specific sale or lease transactions are discussed with prospective purchasers or lessees,
and in each room of a dealer’s established place of business where sale and lease contracts are regularly executed,
which states the following:

“There Is No Cooling-Off Period Unless You Obtain A Contract Cancellation Option.”

California law does not provide for a “Cooling-off” or cancellation period for vehicle lease or purchase contracts.

Therefore, you cannot later cancel such a contract simply because you change your mind,

decide the vehicle cost too much, or wish you had acquired a different vehicle.

After you sign a motor vehicle purchase or lease contract,

it may only be canceled with the agreement of the seller or lessor for legal cause, such as fraud.

However, California law does require a seller to offer a 2 day contract cancellation option

on used vehicles with a purchase price of less than $40,000,

subject to certain statutory conditions.

This contract cancellation option requirement does not apply to the sale of a motorcycle or an off-highway motor vehicle

subject to identification under California law.

See the vehicle contract cancellation option agreement for details. CVC section 11709


For what purpose may special plates be used?

Refer to California Code of Regulations, Title 13 Motor Vehicles Division 1, Chapter 1, Article 3.3.


How do I report a possible unlicensed dealer?

Whenever a licensed dealer has grounds to suspect that a person or persons are engaging in the buying and selling of vehicles as outlined in CVC Section 285 ,

without having first obtained a license from the Department of Motor Vehicles,

the dealer or their authorized representative should file a written complaint

with the local Department of Motor Vehicles Investigative Service Office.


Who do I call for registration questions?

If you have a question relating to registration processing please call the Registration Unit at 1 (800) 777-0133.

You may also contact your local Department of Motor Vehicles Field Office , Registration Section.


Are there exclusions for a dealer license?

Yes. The exclusions for a vehicle dealer license are listed in CVC Section 286.


What is the Used Vehicle Dealer Education Program?

The California Vehicle Code requires certain applicants to successfully complete a

Used Vehicle Dealer Education Program.

The purpose is to ensure that applicants for used vehicle dealer licenses are aware of the laws and regulations

governing the operation of a used vehicle dealership in California.


What is a Used Vehicle Dealer Education Program Provider?

Used Vehicle Dealer Education Program Provider

 is a private vendor who has been authorized by the DMV

to instruct potential applicants for a used vehicle dealer license

on laws and regulations governing the operation of a used vehicle dealership in California.


Who is required to successfully complete a Used Vehicle Dealer Education Program course?

The following applicants must comply with the education and testing requirements:

  • Sole owner
  • All partners who manage the business
  • A corporate officer who manages the business
  • Limited liability company managing partners

Who is NOT required to successfully complete a Used Vehicle Dealer Education Program Provider course?

  • An applicant for a new vehicle dealer’s license or any employee of that dealer.
  • A person who holds a valid license as an automobile dismantler, an employee of that dismantler,
  • or an applicant for an automobile dismantler’s license.
  • An applicant for a motorcycle only dealer’s license or any employee of that dealer.
  • An applicant for a trailer only dealer’s license or any employee of that dealer.
  • An applicant for an all-terrain only dealer’s license or any employee of that dealer.

What will it cost me to attend a Used Vehicle Dealer Education Program course?

Each provider sets its own cost.

Contact the Used Vehicle Dealer Education Program Providers listed for the exact amount.


Where can I find a Used Vehicle Dealer Education Program Provider Course?

The DMV has approved the Used Vehicle Dealer Education Program Providers listed.

You may contact the program provider for information on courses in your area.

Other program providers may be approved in the future.


Where do I go after I successfully complete the Used Vehicle Dealer Education Program course?

After successfully completing the course you will be issued a completion certificate.

You must schedule an appointment with a DMV Inspector in your area to take the test.

The test consists of 40 questions and must be passed with at least 70% accuracy.

You must present your completion certificate, issued by the Used Vehicle Dealer Education Program Provider

and your current California Driver’s License or California Identification Card to take the test.


Is there a charge to take the test?

Yes, you will be charged $16 to take the test.

If you do not pass, you may retake the test after a seven (7) day waiting period.

You will be charged $16 each time the test is taken.


What if I cannot pass the test?

If, after three attempts, you cannot pass the test, you will be referred to the Used Vehicle Dealer Education Program Provider

listed on your completion certificate to determine if additional training is needed.


What is Live Scan and who is affected by it?

Select this link: Live Scan Fingerprinting Information Sheet.

your car dealer bond is critical to getting your car dealer license

1. Auto dealer bonds reinforce industry regulations.

 

Since they’re required before auto dealers can apply for their licenses, auto dealer bonds fall into the license and permit surety category. Government agencies that regulate a wide array of industries establish license and permit bond requirements as a way to ensure working professionals follow industry regulations. Surety bonds are also legally binding contracts, so failing to follow industry regulations is much more than just breaking a rule or two; it’s breaking a contract. When surety contracts are broken, bonded professionals face penalties such as fines, license revocation, and even legal action.

 

2. Surety bonds keep unqualified individuals from working in the market.

 

Insurance underwriters don’t just issue bonds to anybody who needs one. The application process can be rigorous. Surety bonds function as lines of credit; as such, underwriters intend to limit the likelihood that claims will be made. If an applicant is perceived to be risky, the surety provider might charge a higher premium to offset the increased risk or simply refuse to issue the bond altogether. Individuals who cannot qualify for or afford the surety bonds they need won’t be allowed to apply for their licenses. As such, the application process keeps financially unstable individuals from working in the market.

 

3. Surety insurance protects against financial loss.

 

When dealers fail to follow the terms of their bonds, the government wants to ensure harmed consumers will have the ability to collect reparation. Bond funds can be used to reimburse consumers harmed as a result of the negligence, or they can be used to pay for the fines government agencies charge business owners who fail to follow laws. Claims might be made on DMV bonds for a number of reasons, but they all stem from a dealer’s intentional violation of a law relating to the sale, distribution or financing of motor vehicles. At first, having to purchase a surety bond might seem like just another annoyance to auto dealers. However, with a basic understanding of how dealers bonds work, dealers can come to recognize the three key purposes they serve in the market.

 

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is it hard to qualify for a car dealer license bond ???

EZDealerBond.com


In order for a bond company to approve a vehicle dealer bond  of $10,000 or $50,000,

they will run your credit report.

If there are no negative items showing on your credit report and have a decent credit risk score,

you should not have any problems obtaining the bond.

You do not have to own real estate in order to obtain a vehicle dealer bond.

You will have problems obtaining the bond if you have any negative items showing on your credit report,

such as, bankruptcy, collect accounts, short sales, foreclosures, current past dues, etc.

It is possible to obtain the bond with other than perfect credit,

although the bond company may require financial statements (both personal & business statements),

copies of bank statements for the last 3 months, sometimes a co-signer is required.

Some bond companies will approve the bond with negative items showing,

but will charge a larger premium for the bond.

EZDealerBond.com

Mike at 714-797-5780 can help you with your bond needs, good, or bad credit.

You do have the option to post a cash deposit with DMV in lieu of the vehicle dealer surety bond.

You need to be aware that the law states that DMV may keep the deposit up to 3 years

after you are no longer licensed as a dealer or a superior court judge orders release of the deposit.

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DMV Dealer Education Providers

Dealer education providers are listed by the type of class offered and area served. All classes are held in a classroom unless noted in the first column.

*Pre-licensing only
**Continuing Education only
DMV has not approved any “on-line” Pre-Licensing Programs

Area and
Type of Class Offered
Online/Home Study Continuing Education title  title Northern Area title Central Area title Southern Area title Provider

X

X

X

X

X

TriStar Motors, LLC
Phone: 1–800–901–5950
Internet: www.gotplates.com

X

X

X

X

X

24–7 Dealer Training Specialists
Phone: 1–951–833–8398
Internet: www.24–7dealerclass.com

X

X

California Auto Dealer Education
Phone: 1–661–871–3311
Internet: www.cadeclasses.com

X

Central Valley Dealers Licensing Renewal Service
Licensing Renewal Service
Phone: 1–209–333–0900
Email: chuckwentland@aol.com

X

Superior Vehicle Dealer Training Institute
Phone: 1–949–305–8402
Internet: www.superiorbonds.com

X

X

Inland Empire/Orange County Dealer School
Phone: 1–909–648–0446
Internet: www.bigcardealer.com

X

X

X

Dealer Training Experts of Northern California
Phone: 1–408–910–3876
Internet: www.dealersclass.com

X

X

X

X

X

Dealer Intel
Phone: 1-415-613-4754
Internet: www.dealerintel.com

X

X

X

X

X

$85 Dealer Education
Phone: 1-951-541-8390
Internet: www.waynesinsurance.com
X

X

X

X

Los Angeles Dealer School
Phone: 1-310-227-6920
Internet: www.dealerclass.com

*X

Dealer License Seminars of San Diego
Phone: 1-619-665-6440
Internet: www.dealerseminars.com
X X

X

X

X

Golden State Educational Services
Phone: 1-916-470-4384
Internet: www.goldenstateeducation.com

X

X

X

X

X

Dealer Education Services
Phone: 1-888-323-0031
Internet: www.dealereducation.com

X

X

Coffer Dealer Education
Phone: 1-888-694-1444
Internet: www.cofferdealereducation.com

X

Cesar Carrascos Dealer Licensing Seminars
Phone: 1-619-474-0477
Internet: www.carrascogroup.com

X

X

Dealers Support Group
Phone: 1-818-758-9951
Internet: www.dealerssupport.com
X X California Accredited Dealer Education
Phone: (714) 300-4148
Email:: cadeclass@aol.com
X X X X X ATG Dealer School
Phone: 1-818-909-7912
Internet: www.atgdealerschool.com
*X Bell’s Automotive Dealer
Phone: 1-909-202-9204
Email: bell2automotive@yahoo.com

**X

Auto Support Group
Phone: 1-714-588-1511
Email: E2000perez@yahoo.com
X X Dealer Lessons
Phone: 1-877-772-3332
Internet: www.dealerlessons.com
X Online Auto Dealer Ed
Phone: 1-877-724-6150
Internet: www.onlineautodealered.com
X Colby Learning Center of San Diego
Phone: 1-619-559-5748
Email: colbylearning@aol.com
X X Modesto/Central Valley Dealer Education
Phone: 1-209-535-8910

X

Best Solutions
Phone: 1-619-546-4064

X

X

X

X

X

Motorsports Market On-Line Courses, Live Classes and Home Study
Phone: 1-800-980-1967
Internet: www.motorsportsmarket.com

X

A-1 Dealers Support Group
Phone: 1–323–781–7130
Internet: www.a1autodealerssg.com

X

X

X

X

X

Automotive Systems Analysis
Phone: 1–800–564–0984
Internet: www.autosystemsanalysis.com

X

X

X

X

X

FFW Auto Group
Phone: 1–415–644–8052
Internet: www.ffwautogroup.com

Last updated: 07/08/2014

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are salvage vehicles a wise investment ???

Top 5 Issues With Salvage Title Auto Vehicles

Though the price tag can be a real draw, many car buyers have reported a lot of problems when purchasing a salvage title auto vehicle. Here are some of the top concerns drivers should have about trying to get one of these bargains on the road.

Financing – Lots of lenders are wary of financing a salvage title deal because of the unknowns around the vehicle’s real value. Buyers will often have to pay cash up front.
Different State Requirements – Each state has its own rules and regulations for getting salvage title cars street legal. In some states, a state police officer must inspect the vehicle. First time salvage title buyers can often get blindsided with unfamiliar requirements.
Getting Coverage – Some insurers will refuse to cover a salvage title vehicle or jack up the rates, claiming the vehicle is not “roadworthy” or represents a safety risk.
Claim Situations – If a driver does get insurance for a salvage title vehicle, the insurer will probably not pay out much in the case of a claim. They may contend that because of prior damage, the vehicle is not worth much, regardless of how the vehicle looks or what the actual damage is.
Resale – Those who buy salvage title vehicles are hardly ever going to get easy resale value. Most buyers tend to avoid these vehicles because of the above problems.
These are a few of the most major problems with actually making use of a salvage title deal that looked so good on paper. Do your homework before buying to avoid these dicey situations.

Related Questions and Answers

Are there any Laws Against Getting a Rebuildable Salvage Car for Project Car Purposes?
You must show your DMV that you are getting a rebuildable salvage car for project purposes. In other words, you will have to provide to your DMV that the flood-ravaged 2011 Camaro that was floating upside-down in mud and crud-encrusted water is not having its carpeting and padding ripped out. Or, its upholstery swapped so that the vehicle meets the very minimum of the law to be sold as a “new” vehicle. Remember that if you are building a salvage car, you must show proof that the salvage parts you were supposed to have changed, were actually changed.

Are there any Restrictions to Selling a Used Salvage Car?
There are no restrictions to selling a used salvage car, provided that you clear the reason for the salvage restriction in the first place, and rebuild the salvage title into a standard title. The reason for the salvage title could be as little as a precaution on the part of an insurance company that assumed such because one car on a lot was flooded, all the cars would be flooded. Therefore, it should be totaled and sent into the salvage market. However, there are salvage titles where you must show proof that the damage that led to the salvage marking in the first place has been cleaned and replaced. You must prove this beyond the shadow of a doubt for your DMV and insurance company.