6.030 New Vehicles Sales by a Non-Dealer

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

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

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

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

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

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

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

• A completed Application for Title or Registration (REG 343) form including the cost information.
• A Verification of Vehicle (REG 31) form.
• The manufacturer’s certificate of origin or factory invoice to the purchaser and any bill(s) of sale required to complete the chain of ownership.
• A weight certificate for a commercial vehicle weighing less than 10,001 pounds unladen. If the vehicle is operated at over 10,000 pounds GVW or is a PTI trailer, the estimated weight may be shown on a Statement of Facts (REG 256) form. Refer to Chapter 13 for exceptions to the weight certificate requirement.
• Declaration of Gross Vehicle Weight (GVW)/Combined Gross Vehicle Weight (CGW) (REG 4008) form for a commercial vehicle over 6,001 pounds unladen, except pickups.
• A smog certification, if appropriate.
• The fees due, including use tax or evidence that sales tax has been paid.

The procedures below must be followed:

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

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