2.010 Autobroker (VC §166)

An autobroker or auto buying service is a dealer as defined in VC §285, who engages in the business of brokering as defined below:

• Brokering is an arrangement under which a dealer, for a fee or other consideration, regardless of the form or time of payment, provides or offers to provide the service of arranging, negotiating, assisting, or effectuating the purchase of a new or used motor vehicle, not owned by the dealer, for another (VC §232.5).

• A dealer may not engage in brokering a retail sales transaction without having an autobroker’s endorsement to their dealer’s license.
  • This endorsement subjects the dealer to all of the licensing, advertising, and other statutory and regulatory requirements and prohibitions applicable to a dealer.
• An autobroker will be required by DMV to maintain a log for each retail sale brokered by that dealer and deposit the purchase and deposit money into a trust account.