Red Flag Enforcement still on the FTC radar for car dealers

Federal officials don’t seem to be routinely monitoring whether dealerships are complying with the Red Flags Rule, which went into effect last year, compliance expert Gil Van Over told Automotive News.

“I haven’t seen any enforcement action being taken as a pre-emptive measure,” he said.

Even so, dealerships face dire consequences if identity theft is detected and the store didn’t comply with the rule, said Van Over, president of gvo3 & Associates in Crown Point, Ind.

The Red Flags Rule is aimed at preventing identity theft. Dealers must create and maintain a written plan for complying. The plan spells out how the dealership will detect “red flags” and who’s responsible for doing what. Examples of red flags include a photo ID that does not look like the customer, an address that doesn’t match the customer’s official records, or a customer who is in an unusual hurry and doesn’t take delivery in person.

Carole Reynolds, senior attorney for the Federal Trade Commission’s Division of Financial Practices, says the Red Flags Rule is still on the FTC’s radar. “It is something that can be and remains a focus,” she said last month during an Automotive News F&I Week Webinar.

Attorney Michael Benoit of the Hudson Cook law firm, who also spoke during the Webinar, noted that several states have identity-theft laws, too: “What I have seen are attorney generals launching investigations against creditors where there has been an identity theft, and where it appears that lax procedures or ineffective compliance played a part in letting that happen.”


You can reach Jim Henry at

Read more:

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Which Class would you like?
Pre-Licensing In Person Class Choices:
$100.00 – New Dealer Class*
SPECIAL OFFER Register and pay for class online when you register. Take our online tutorial before coming to class & get $100.00 off your tuition. Must show completion certificate and receipt of payment in class.

$200.00 – New Dealer Class*

$300.00 – Private New Dealer Class

*New Dealer Classes must be completed In-Person. Pre-payment and Online tutorial
completion simply gives you the best price. See Class Locations for a program near you.

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Car Dealer School

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car dealer power of attorney


we are often asked in our car dealer class

what is the most efficient way to register a vehicle on behalf of your customer ???

we use a DMV REG 262 form in most situations

but ocassionally we suggest a durable power of attorney


fleet purchases

letter of credit transactions

vehicle being shipped overseas

probate and estate vehicle sales


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you should consider incorporation for your car dealer license


you have four choices

sole proprietor





we suggest you always consider forming a corporation

good luck





california car dealer license training from

Pre-Licensing Dealer Class

car dealers…..pull out the carfax and run the VIN from gotplates

PULL OUT A CARFAX & RUN THE VIN makes it easy:

Instant NMVTIS Vehicle History Reports
Get full, online NMVTIS vehicle reports you can save, email, or print.
24/7 Online Access
Access instant reports through our web, desktop, and mobile interfaces.
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We guarantee the lowest prices for access to NMVTIS data.



at your service
– prefills “gotplates” promo code
– dealers who use it get 5 free reports initially


got exotic ??? need consignment ???

Hope everyone’s summer has been great! We have had a great summer and now are on the Hunt for some inventory. We are looking to represent (Consign/Buy) Exotic, Classic, Muscle, Vintage, Sports and Luxury Cars !

We can Sell your Car! I know what your thinking another Dealership email. We arent your “traditional” Dealership. We believe that we are partners with our clients and we will meet their needs as if they were our own. It is a very simple statement, but selling your vehicle can be a long drawn out process. We have been in the automotive business for years and have a vast knowledge of auto manufactures, vehicles, products and options. We have a wealth of experience in knowing customer’s buying habits or trigger points.

Here are a few details and what to expect……

  • we will take professional photos
  • CARFAX report for you and potential buyers
  • appraisal and price consultation.
  • arrange detail and reconditioning services
  • field and qualify all incoming calls
  • schedule and handle all viewings
  • price negotiations communicate with you the details of any potential buyer or offer

Most importantly this will provide a barrier between you and the buyer which preserves your privacy This will save you time and energy not having to deal with test-drives, general inquiries “tire kickers” un-qualified buyer, Have callers stand you up for showings, arrive late or early, and call your home/cell at all hours, Have strangers come to your home to see your vehicle, Receive much less than the actual value of your car and last but not least deal with the dreaded DMV.

We have a established list of vehicle purchasing clientele, colleagues in the industry and other resources to make your selling experience efficient and financially rewarding

Bespoke Services

Our Bespoke Services help clients buy any type of car, whether it’s a concours, classic rally, daily driver, family car or car for your kids. Maybe you found that special car somewhere else, we offer impartial professional advice and inspections. In addition if you are local we offer a Bespoke program which assist you in scheduling and arranging any vehicle’s servicing or maintenance needs.

Latest News

Our Jaguar is set to run at the !!Gooding and Company Auction in Pebble Beach Aug. 18-19, 2012‘)

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a government sponsored vehicle history ???

What’s inside the vehicle history report?
The vehicle history report compiles all available records related to your VIN into a single report. It includes:

  • Detailed vehicle specifications
  • Current and history title records
  • Reported odometer readings & issues
  • Checks across 60+ potential title brands
  • The date and entity for title brands present
  • Records of total-loss reported by insurance companies
  • Records of salvage reported by junk and salvage yards
  • The contact information associated junk, salvage, and insurance entities

Where does the data come from?

The vehicle history data is supplied by the National Motor Vehicle Title Information System (NMVTIS). States, insurance carriers, and salvage yards are required by federal law to report data to NMVTIS. According to NMVTIS, their data providers include over 9000 insurance carriers, auto recyclers, junk yards and salvage yards and their database includes over 40 million salvage or total loss records.
How do I get a report for my vehicle?

You can begin by running an instant lookup on your Vehicle Identification Number.

car buyers can run dmv approved vehicle reports for $ 10.



July 1 all car dealers must make a vehicle history available



All vehicles with history must have a red sticker posted on the car


YES is the only provider of Red Stickers for




Any car buyer can run a DMV Approved Vehicle History Report for $ 10.

wholesale indiana car dealer license scheme is most likely illegal if you run it from california

it is true

as a licensed car dealer

you may sell in all 50 states


dmv regulations in california

along with the state board of equalization guidelines

clearly state:




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



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.


Court decisions
To look up court decisions on nexus (engaged in business) issues, see:


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.


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.
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. eReg is also available in our field offices. Please contact our Taxpayer Information Section for assistance
at 800-400-7115.



offering wholesale dealer licenses without having a nexus in california

Dealer License Pro’s is a division of the AA Access Corporation and was founded in October of 2008 by Douglas Walker after serving the automotive retail industry for 28 years, due to the high demand and lack of information to obtain a used car dealer license. We have eliminated all the guess work and endless hours of searching for information of how to obtain your own wholesale used car dealer license and dealer plates. At Dealer License Pro’s we want to simplify the process of getting a wholesale car dealers license to you and therefore we do all the proper paperwork and submit it on your behalf. What differentiates us from others is the fact the you will be your own wholesale car dealer within weeks of submitting your application.

Why Choose Dealer License Pro’s for your Auto Dealer License?

Dealer License Pro’s a division of AA Access Corporation gives you the knowledge, fortitude, and 28 years of experience in obtaining your own business. No partnerships, no alliances, just the tools for financial success for many years to come. You might ask, how? It’s simple- let 28 years of our sweat equity work for you. We completely understand how people dread buying cars from dealers and the opportunity costs associated with such transactions. So we have decided to help restore consumer confidence in what is now and has been for years a maligned auto industry. By eliminating huge overheads needed for dealers to operate, we can show you how to pass the savings on to future automobile consumers while maintaining profitable sales. A win, win for all parties.

Our Promise to You

Dealer License Pro’s has trained professionals that are willing to aid you every step of the way to your financial success as a wholesale used car dealer. Your success is our success. So ultimately, we want you to succeed, as your are part of our family of wholesale used car dealers. And if our system, guidance, and advice is followed, we guarantee success in your wholesale endeavors. We are the only ones in the market place that offers this guarantee of success, as our trained professionals are offered to you free of charge. And what does this mean to you? We care about all members of our family and your future success.

Read More:
How to Get A Wholesale Car Dealers License
Get Access to Auto Dealer Auctions Nation Wide


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


attorney general to review car dealer markup bill proposed for 2014

December 3, 2013

By Brittany-Marie Swanson

Rosemary Shahan, president of CARS, speaks at the CFPB’s first public forum on auto lending in November.
Rosemary Shahan, president of CARS, speaks at the CFPB's first public forum on auto lending in November.

SACRAMENTO, Calif. — Consumers for Auto Reliability and Safety (CARS), a consumer advocacy group, submitted a new ballot initiative to the California attorney general’s office on Oct. 30. Part of the initiative calls for the elimination of dealer markup, a practice currently being scrutinized by the Consumer Financial Protection Bureau (CFPB).

Rosemary Shahan, president of CARS, discussed the ballot measure during the CFPB’s first public forum on auto lending, held on Nov. 15 at its Washington, D.C., headquarters. The Car Buyers Protection Act is slated to appear on the November 2014 ballot.

“I would note that the provision [aimed at eliminating dealer markup] in the initiative that we just filed … polled at 82 percent support,” Shahan said during the CFPB forum, for which she served as a panelist. “And there isn’t a lot these days that polls so resoundingly well.”

Most industry and regulatory representatives present at the forum, including CFPB Director Richard Cordray, agreed that dealers deserve to be compensated for arranging financing for consumers. The CFPB is concerned that the discretion dealers are allowed when marking up rates creates a fair lending risk. Shahan, however, disagreed.

“I don’t think they should be compensated for that,” Shahan told F&I and Showroom. “It’s something you can do yourself better for free. Why would you pay someone to put you into a bad loan?”

California New Car Dealer Association (CNCDA) President Brian Maas told the magazine that Shahan’s approach is “pretty hard to respond to.”

“The short summary is, [the initiative] is a solution in search of a problem,” he said. “It would have a potentially devastating impact on the new-car business, just to fix things that frankly are going to be resolved one way or another anyway, or don’t need to be resolved at all, or are confusing. So we’re perplexed, frankly. Why this ballot measure at this time?

“Obviously, the CFPB is looking at the issue closely and trying to decide if disparate impact or discrimination exists [in auto lending], and what’s the appropriate compensation scheme and what have you,” Maas added. “But even the CFPB has conceded that dealers should be paid for performing the service.”

In addition to eliminating dealer markup, the proposed Car Buyers Protection Act would make it illegal for dealers to sell, rent, lease or loan recalled used cars, as well as improve protections against “bait and switch” financing and for victims of identity theft perpetrated at car dealerships. The proposed ballot measure would also require that dealers offer a minimum 30-day, 1,000-mile warranty on all used cars.

The initiative also seeks to eliminate the authority of the New Motor Vehicle Board to overrule disciplinary actions against dealers and manufacturers approved by the Department of Motor Vehicles.

“There are a number of problems that have been identified over the years where the public really wants to see change, but the dealers keep blocking it in the legislature either federally, or at the state level,” Shahan said. “And so [this initiative] is aimed at getting these policies enacted through popular vote.”

The advocacy group recently sponsored SB 686, a bill intended to prohibit the sale of unsafe used cars. It was blocked in California’s Assembly Business and Professions Committee in July and cannot be revived until January 2014.

At the CFPB forum, Shahan called California “ground zero” for the issue the CFPB is currently tackling: discrimination in auto lending. California is one of two states that caps dealer markups —2.5 percent for loans up to 60 months and 2 percent for longer loans.

Shahan’s organization’s next step is to meet with the California attorney general’s office, and she said she’s prepared for a long fight. “I expect it to be a battle,” she said. “I imagine the dealers are going to oppose it tooth and nail. But I think at the end of the day, we’ll win. Because … the practices really do not stand up to scrutiny.”

Maas, however, pointed out that the ballot measure may harm the people it intends to protect.

“If dealers don’t provide financing, how does a subprime customer get financed? You can’t walk into a subprime lending intuition; they don’t exist … If I’m a credit challenged customer, it’s the dealer that is working hard to get me financed,” he said. “He’s got an incentive, he wants to sell a car … and that’s why the dealer financing model works.

“We’re a bit frustrated,” Maas added. “It’s not clear at this point how much support [Shahan] has for the measure, other than the fact that she spent $200 to file it with the attorney general.”

has tesla motors bothered to read the dmv car dealer handbook ???

By Alan Ohnsman 

Tesla Motors Inc. (TSLA)’s promotion of a lease-style finance program for Model S electric sedans spurred the California New Car Dealers Association to seek a state investigation of what it says are deceptive advertising claims.

Tesla told customers they “can take advantage of multiple incentives, gas savings, and tax savings resulting in low monthly vehicle payments, when it is unlikely that customers will actually realize such savings,” the dealer group said in an e-mail. The association made its request for an investigation of “unsubstantiated and illegal savings claims” with the California Department of Motor Vehicles.


Sept. 16 (Bloomberg) — Elon Musk, chief executive officer of Tesla Motors Inc. and Space Exploration Technologies Corp., speaks about his career and businesses. He speaks at the Montana Economic Development Summit in Butte, Montana. (Source: Bloomberg)

The electric-car maker led by billionaire entrepreneur Elon Musk debuted the finance program in April and revised it in May after the company was criticized for its explanation of monthly payments. When first introduced, Tesla said customers could finance one of its cars for the equivalent of $500 per month, based on factors including fuel and time savings.

While the company’s website shows a monthly cash payment of $916 for a $71,070 version of Model S, financed for 72 months, it also displays an “effective” monthly payment of just$579 that includes fuel and time savings and the impact of a guaranteed resale price after three years.

Shanna Hendriks, a Tesla spokeswoman, declined to comment on the matter.

Tesla, based in Palo Alto, California, sells its electric cars directly through its own stores while vehicles produced by major automakers are sold through franchised dealers. That’s spurred opposition from dealers across the country.

Dealers have filed lawsuits in New York and Massachusetts to block direct sales, and the company also has been barred from selling directly to customers within Texas and North Carolina.

Tesla gained 0.6 percent to $166.58 at the close in New York. The shares have surged almost fivefold this year, compared with a 20 percent increase for the Russell 1000 Index.

To contact the reporter on this story: Alan Ohnsman in Los Angeles

To contact the editor responsible for this story: Jamie Butters at

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DMV Inspector Offices




got free car dealer website ???

( $ 500 VALUE )
A Car Dealer Website
Will help you sell more cars!

To remain competitive in the used car marketplace you need to have an online presence. We make it easy to do so. Get a dealer website, put your cars online, spread the word about who you are and what you sell.

Our out of the box dealer website solution requires absolutely no work on your part and appropriate customizations are handled by our staff. For dealers that want to dig a little deeper and get more involved, your dealer site is customizable by you with just a few clicks. The site style, the content, the header design, the cars that rotate and appear in the header, the background colors, the keywords, the page descriptions, the page titles, the search engine optimization – it’s all in your hands if you want to take the reins. If not, it’s taken care of for you by our staff.

You can load your inventory into Dealer Jump by deocding each VIN and clicking 1 button to add up to 100 pictures from your computer. Before you know it you’ll start gaining visibility online, generating more traffic, talking to more leads, and selling more cars!

It’s no surprise that auto dealers with a dealer website sell more vehicles than their competition without one. As a dealer you need to promote your business by displaying your vehicle inventory online. You’ll reach people you never knew were your customers and you’ll gain business credibility. We’ll provide you with a cutting edge design for your dealership that encourages customer interaction.

Summary of our dealer website offering:
  • Clean, easy navigation so users can browse your inventory and find the car they’re looking for
  • Phone number present on every page so site visitors can call you easily
  • A contact form on each vehicle page so site visitors can write to you with inquiries because not every person wants to pick up the phone. Sometimes it’s easier to just type a simple question and click SEND.
  • Clear display of the vehicles in your inventory with pictures and other pertinent details.
  • A location map so site visitors can figure out how to get to your lot and visit you in-person if they like what they see online
  • Search engine optimized pages that get indexed and organically placed in the search results of the majr search engines
  • Load dozens of pictures from your camera or computer (max 100) for each vehicle with 1 click
  • Decode the VIN of your vehicles and load them on your website in seconds.
  • Be up and running, live and online within a couple days.
  • We buy your domain name and provide the hosting
  • We provide you with a real email address that ends in your domain so you can look more credible and professional. Instead of a yahoo, gmail, hotmail, live, msn or other free email account, you can gain credibility with an e-mail address that is a part of your web domain (i.e.

Every dealer has a competitive advantage and a reason or two why the consumer should spend money in their dealership and not the other dealers down the block, but remember that no matter how many reasons you give your customer to buy a car from you, consumers have choices. There is great value in a customer having a good experience with you both online and in-person. So get started with a website for your auto dealership and get yourself out there. Make in impact. Showcase your inventory. Get more leads and sell more cars.

The sites we design for dealers are to-the-point and get the job done. Dealers all over the United States are enjoying using our dealer websites. Each site is designed to engage your customer and to convert them from just a website visitor into a web lead. You’ll have site visitors writing to you and calling you

Get a dealer website and sell cars online

To get started with a new dealer website for your business, click here >>

got the correct DMV registration forms ???

Most Commonly Used DMV Forms

Adobe Acrobat Reader is required to view, fill out and print forms. To incorporate the latest accessibility features download of the latest version of Acrobat Reader may be required. If you have problems with Acrobat Reader or our PDF form, select PDF Troubleshooting. To submit a form electronically, use the eForm version. For large quantities, read Ordering DMV Forms in Large Quantities To obtain a form by mail, call DMV’s automated phone service 24 hours a day, 7 days a week at 1-800-777-0133. To speak to an operator call between the hours of 8 a.m. and 5 p.m. Monday – Friday, Pacific Time.

Click on the Clicking this symbol will display form instructions. to view information for the form.


Change of Address (PDF) (DMV 14) Click to view form instructions.

Request for Own Driver License or Vehicle Registration Record (PDF) (INF 1125) Click to view form instructions.

Traffic Accident Report (PDF) eforms Click to view form instructions.


Bill of Sale (PDF) (REG 135) Click to view form instructions.

Notice of Release of Liability (PDF) (REG 138) Click to view form instructions.

Application for Duplicate Title (PDF) (REG 227) Click to view form instructions.

Application for Title or Registration (REG 343) (PDF) Click to view form instructions.

Statement of Facts (PDF) (REG 256) Click to view form instructions.

Plates, Placards, and Stickers

Special Interest License Plates Application (PDF) (REG 17) Click to view form instructions.

Application for Replacement Plates, Sticker, Documents (PDF) (REG 156) Click to view form instructions.

Application for Disabled Person Parking Placard or Plates (PDF) (REG 195) Click to view form instructions.

Back to Main forms page

what are happy stickers ??? ( report of sale holders )


Report of Sale Decals

Regular Size (3 color)


See below for pricing

Advertise your dealership name at eye level! Slit on the back for easy application. Production time is 3-4 weeks from approval of artwork. NO ART CHARGES! Dimensions: Overall Size is 4 1/4 inches X 6 inches. Top Imprint Area: 1 3/8 inches X 4 3/4 inches. Non-Imprint Area: 2 1/4 inches X 6 inches. Bottom Imprint Area: 5/8 inches X 4 3/4 inches. Minimum Order Quantity is 500. Discount Prices available on orders of 1,000 and 2,500 or more.
  • Model: 610-REG-3
  • 949-837-4088


car dealer starter forms kit

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used car dealer insurance

car dealer license plates w/o car dealer insurance = foolish

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wanna learn the car dealer lingo ???


Cap Cost: this is the sale price you negotiate for that new car you want to lease; unless there’s a waiting list a mile long, this is not the same as the MSRP.

Certified: means the car has been cleaned and checked out by the dealer. Remember: only factory certified cars have the backing of the manufacturer.

Credit Report: a detailed explanation of your borrowing and bill-paying history, not to be confused with your… (See Credit Score.)

Credit Score: a three-digit number that expresses your creditworthiness. This number gives lenders a good idea of how likely you are to pay your bills.

“Cup Holder Factor”: Is your chosen car a good physical fit for you? Does the seatbelt hit your shoulder, or are you chewing on it? Do the seats and steering wheel adjust for your height and weight? Is there enough headroom? Legroom? Are there any blind spots? Are the controls and accessories logically placed and easy to locate? And, the inevitable, will the cup holder accommodate your double decaf grande latte? All this factors in to a good deal.

Curb Appeal: means cleaning up your car to make it look ten times better than it ever did while you were driving it—to entice potential buyers.

Dealer: Someone who is licensed to sell you a car, and abides by all the appropriate auto industry rules and regulations, or so you hope.

Dealer Cost: is the dealer invoice minus a whole bunch of stuff like incentives, environmental packages, advertising fees, and more. This is what the dealer actually paid for the car.

Dealer Invoice (Invoice): The price the dealer wants you to believe he paid for the car, when chances are, he really paid much less. (See Dealer Cost.)

Depreciation: The reduced value of the car after you buy it, or that portion of the car you “use” over the course of a lease.

The “Desk”: the sales manager

Extended warranty: This is also referred to as a service contract. It is an option you may purchase on a new, and some used cars. The extended warranty should cover car repairs over a longer period than the manufacturer’s warranty, which comes with the car. But beware: it’s a high-profit item for a dealer—cheaper ones are available online.

Four-Square Easy Sheets: easy sheets designed to combine all elements of the deal- the purchase price, trade-in, monthly payments and down payment. Don’t do it! Keep all items separate!

Holdback: An amount the manufacturer pays the dealer for each car sold of a particular make. Also referred to as a “kickback.”

Idiot- What you are if you don’t use AutoIdiot’s “Don’t Be an Idiot!” car-buying system before you buy, sell, or lease a car!

“In the Box”: In the salesperson’s cubicle.

Incentives: Money or other special deals that entice you to buy a vehicle.

Invoice (Dealer’s Invoice): The price the dealer wants you to believe he paid for the car, when chances are, he really paid much less. (See Dealer Cost.)

Lay-down: a customer who takes any deal the salesperson offers.

Leasing: is when you pay a low monthly fee to drive a fully warrantied, brand new car every two years or so, but you don’t actually own the car.

Mileage Allowance- the amount of miles per year you’re allowed to drive on a lease. Better not go over: the fees can be quite painful.

Money Factor: used for leases, this is kind of the same thing as an interest rate on a loan, only much more complicated.

MSRP: Manufacturer’s Suggested Retail Price

Options: These are extras you can have added to a standard vehicle, and usually come in packages.

Rebate: money you get back after you buy the car.

Recall: If a car model has a defect, a manufacturer may issue a “recall” notice, meaning that the defect will be fixed at the manufacturer’s expense.

Repossession: If you don’t make your car loan payments, you may get a visit from the Repo-man: the finance company that gave you the loan has every right to come and take your T-Bird away.

Residual Value: The amount a leased car is predicted to be worth after your lease is up

Rollover: this is when the dealer takes the loan from your old car and magically rolls it over into the loan for your new car. Don’t do it! You’ll be paying off two cars on the same bill!

Rustproofing: Meant to hold off body erosion, rustproofing is an unnecessary extra that a lot of car dealers push.

Salvaged or Rebuilt Title: when a car has been previously totaled, the title is marked “salvaged”. Often, these cars are dolled up and their titles are “rebuilt”, or laundered back to normal. You do not want one of these cars!

Service contract: Also called an “extended warranty,” it supplements the manufacturer’s warranty, which comes with a vehicle you purchase. A service contract is a high-profit item for the dealer. Make sure it offers substantially more than the standard warranty.

Subvent: This is when the manufacturers need to unload a certain kind of car so they inflate or “subvent” the residual value to entice you to sign up for a lease.

Target Price: the fair and reasonable price for a vehicle.

Test Drive: That’s when you take the car out for a spin- and check everything from the engine to the tires to the “Cup Holder Factor” to make sure it’s the car for you.

Title Search or Title History: gives you the lowdown on a car’s potentially sordid past. Shows a vehicle’s ownership history by using its VIN. Always do a title search if you’re buying a used car.

Upside Down: means you owe more on your car than it’s actually worth.

VIN: Vehicle Identification Number, every car’s got one.

The 5 W’s: system for advertising your car: Window (of the car), Word-of-mouth, Work (or anywhere potential buyers congregate), Wall Street Journal (really just refers to any newspaper advertisement), World Wide Web.

The Walkaround: this is when you—that’s right– walk around the car and check it out.

Warranty: is a guarantee that certain mechanical problems and body parts will be fixed if they aren’t in proper working condition. The warranty is usually limited, so make sure you know what’s included- and especially what’s not. Check online for cheaper warranties—this is a big money-maker for a dealership. has more locations in orange county for the car dealer license class

dmv requires a training class to take your car dealer license examination

dmv requires you pass a 40 question exam to submit your car dealer license application

we teach the required dmv license certification class in more places than anyone else

find out why our competition struggles to match our offer

could it be better value??

could it be better pricing??

could it be our dedication to customer service??

we like to think it is all three

visit our website to see our entire class schedule

nancy is our car dealer license instructor in anaheim


we have a class in anaheim every month

sony is our car dealer license instructor in garden grove


we have a class in garden grove every month

alex is our car dealer instructor in newport beach


we have a class in newport every two weeks

good luck with getting your car dealer license


red flag rules car dealer school for dealers offering credit


every car dealer offering credit

must be Red Flag certified

as of Jan 1, 2011


annual review and updates are required

we have a complete Red Flag car dealer program


Red Flag Program

Red Flag Updates for 2013




just what does it take to become a licensed car dealer in california ???

DMV Car Dealer Licensing Checklist

The process can be broken down into three steps:
Dealer Class, Practice Exam & Certificate
Getting your bond & submitting an Application
Final location inspection by your DMV Inspector

Here is a list of everything:
· Dealer Education School, Call TriStar Motors
800 – 901 – 5950 and to attend obtain your Certificate.
· Register On-Line at

Everyone must take the New Dealer Class,

· Obtain the DMV Inspector’s number for your area and
leave a message to schedule the examination.
The DMV website @

Then from the dmv website,,

the student must find the:
list of DMV inspectors,
application for dealers license,
list of registration forms,


· Pay $ 16. and pass the DMV exam.

When you have studied and are prepared for the
DMV dealer examination the student will make an
appointment with the DMV Inspector.

The student will
need to take their:
CA photo ID & TriStar issued DMV Certificate of Completion.
The DMV dealer test is 30 minutes long, 40 questions,
multiple choice.
The student must get 28 correct out of 40, 70%, and
three chances are allowed on one certificate.
If the student does not pass, TriStar supplemental
training is always FREE.
If the student fails the test three times, TriStar will
make a full refund.

· Choose the Name, Location and Type of dealership.
Once the testing is complete the student begins to
build the business.

Every dealer needs to choose a name of the
dealership and a location.

Every dealer MUST have an office.

Every dealer needs to choose the type of dealership
and vehicle type with endorsements.
Dealer types: Retail or Wholesale Only
( Retail includes Wholesale )
Vehicle Types: A/C cars and trucks
M/C motorcycles
ATV all terrain vehicles
MH motorhome
Rec T recreational trailer
Trl trailer
SM snowmobile

Endorsements: AutoBroker

· Obtain the Zoning Verification Letter.
Every dealer must have their location zoning
approved, using the proper DMV form, by the local
planning authority for the office location.
The proper zoning

· File a Fictitious Name Statement with the county clerk
and have it published in a local paper.
The dealer must file a Fictitious Name Statement with
the county clerk of jurisdiction for the office location.
A list of California county websites:·


Obtain a Surety Bond in the amount of $ 50,000.
Wholesale & less than 25 cars/ year then $ 10,000.
The surety bond is a promise by the dealer to honor
all obligations on behalf of the dealership, including
DMV fees and penalties, State sales tax and a
judgment by any court against the dealership.
Cash, Savings or a Bond may be posted.
Your credit report will set the Bond Premium
Some credit scores will require collateral.
The DMV form needed to submit your bond:
If less than 25 cars per year & wholesale only:

· Obtain a Business License
The city or county issuing the zoning permission letter
will usually require a business license.
· Obtain a Live Scan Fingerprint Card.
To obtain a location check:

DMV Live Scan information:
DMV Sample Live Scan Form


Obtain a Board of Equalization Seller’s Permit.
To obtain a location of a field office:
Board Information on Registration:
Application Form:

· Complete the Application and have someone read it
over for you to look for errors and omissions.

Ask your
DMV Inspector if you can FAX it in for review.
· Call the DMV Inspector and submit the Application with
your Bond Declaration Form. You must have a Bond in
place to submit your application. If you wish to be
considered for a temporary license, you must have all
photos completed as well.
list of DMV inspectors,
DMV photo requirements:

Generally you will need:
11 photos for retail
8 for wholesale, 9 for wholesale with a broker endorsement

 They are:

1 Building photo
2 Outside sign photo ®
3 Display area photo ®
4 Office
5 Business License posting photo
6 Resale Permit posting photo
7 Telephone
8 Interior Signs ®
9 Locked Cabinet
10 Checkbook
11 Dealer Book

· Build your office before you contact the DMV Inspector
for final inspection and clearance.

· Obtain a phone and have a phone line installed in the
name of the dealership, including a 411 listing.

· If retail, Obtain and install exterior signs.
One sign if sole user of the location.
Multiple signs if mixed use at the location.

· If retail, Install the three Office Signs provided by TriStar

The No Cooling Off Period Notice to Public

The Inspection of Vehicle Notice to Public

Car Buyer Bill of Rights Disclosure


 Create a locked cabinet, desk drawer, file cabinet or safe to store DMV report of sale forms.


· Open a Bank Account in the name of the dealership.

· Label a thick 3 ring binder as your dealer book.

This book will hold for all updates sent by the DMV, all ROS
forms you might have to void & your broker log. ·

For registration forms write to:
DMV Forms Office
P.O. Box 932242, Sacramento,CA, 94232
Use the list of forms from the DMV website & add the
REG 262 to the list.
list of registration forms,
Draft a letter on your dealer letterhead including a
copy of your DMV certificate of completion requesting
25 of each listed form.
These forms are sent at no charge.

· Contact for forms & disclosures.
Their website for dealer forms:

The four forms needed:

conditional sales contract CA553
English copy, 4 per set, latest version
Spanish Copy, 1 per set, latest version

as-is no warranty for Federal Buyers Guide, 327D
English copy, latest version
Spanish Copy, latest version


car buyer bill of rights option form
English copy, latest version
Spanish Copy,latest version


Not for Sale Sticker


· Create & have ready photos of your setup.
Instruction on photos @

· Final inspection follows in 90 – 120 days following
clearance from Sacramento.
The DMV Inspector will call you for an inspection appointment.
· When you pass inspection you will receive your:
dealer number
wall license
car dealer license special plates
report of sale forms, for your type of license.


good luck


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every car dealer license applicant must complete a background check ( livescan )


A background investigation is conducted on all applicants and disclosure of a conviction may result in a temporary
operating permit not being issued.
Failure to disclose any and all convictions may result in the refusal, denial, or revocation of your license.
Pursuant to CVC Section 11703, the department may refuse to issue a license to any applicant who has been
convicted of a crime or committed any act or engaged in any conduct involving moral turpitude which is substantially
related to the qualiications, functions, or duties of the licensed activity.
A plea of nolo contendere is a conviction within the meaning of this section. In addition, Article 4 and Article 6.1
of Title 13, of the California Code of Regulations (CCR) provide guidelines used by the department in determining
whether a license should be issued.


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mooches need not apply

if the cost of your car dealer education class concerns you

we suggest grinding our competition for a cash discount


some will be happy to oblige


if you want the best car dealer license training

at the lowest complete price

at the most locations

the answer is simple




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