Vehicle Salesperson License Guide
Vehicle Salesperson License Guide
VEHICLE
SALESPERSON
LICENSE
HANDBOOK
BACKGROUND INVESTIGATION
A background investigation is conducted on all applicants. Failure to disclose convictions or providing
incorrect information on the application may result in the refusal or denial of your license. 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 qualifications or duties
of the licensed activity. A conviction based on plea of nolo contendere is a conviction within the meaning of
this section. CVC Section 11806. Persons previously working under a license issued by DMV, which was revoked
or suspended for cause may also be denied a license. In addition, the California Code of Regulations (CCR)
and other sections of the California Vehicle Code provides guidelines used by the department in determining
whether a license should be issued. CCR, Title 13, Chapter 1.
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• Persons regularly employed as salespersons by persons who are engaged in a business activity which
does not involve the purchase, sale, or exchange of vehicles, except incidentally in conjunction with the
purchase, sale, or exchange of vehicles of a type not subject to registration under this code, boat trailers,
or midget autos or racers advertised as being built exclusively for use by children.
• Persons licensed as a vehicle dealer under this code doing business as a sole ownership or member
of a partnership or a stockholder and director of a corporation or a member and manager of a limited
liability company licensed as a vehicle dealer under this code. However, those persons shall engage in
the activities of a salesperson, as defined in this section, exclusively on behalf of the sole ownership or
partnership or corporation or limited liability company in which they own an interest or stock, and those
persons owning stock shall be directors of the corporation; otherwise, they are vehicle salespersons and
subject to Article 2 (commencing with Section 11800) of Chapter 4 of Division 5.
• Persons regularly employed as salespersons by a vehicle dealer authorized to do business in California
under Section 11700.1 of the Vehicle Code. CVC Section 675 (b)
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FORMS TO CHANGE A VEHICLE SALESPERSON’S LICENSE
Form(s) to change your existing vehicle salesperson license:
• OL 18, Application for a Duplicate or Corrected Vehicle Salesperson License
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Who is affected by it?
Anyone applying for the first time to be licensed as a vehicle salesperson, dealer, driving instructor or any
other vehicle industry related occupation licensed by DMV will be Live Scan fingerprinted. It also applies
to first time applicants for an ambulance driver certificate.
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VEHICLE SALESPERSON LICENSING AUTHORITY
California Vehicle Code. Sections 675 and 11302-11909. The California Vehicle Code is available for
purchase from the Department of Motor Vehicles.
Vehicle Salesperson
675. (a) “Vehicle salesperson” is a person not otherwise expressly excluded by this section, who does
one or a combination of the following:
(1) Is employed as a salesperson by a dealer, as defined in Section 285, or who, under any
form of contract, agreement, or arrangement with a dealer, for commission, money, profit,
or other thing of value, sells, exchanges, buys, or offers for sale, negotiates, or attempts to
negotiate, a sale, or exchange of an interest in a vehicle required to be registered under this
code.
(2) Induces or attempts to induce any person to buy or exchange an interest in a vehicle required
to be registered, and who receives or expects to receive a commission, money, brokerage
fees, profit, or any other thing of value, from either the seller or purchaser of the vehicle.
(3) Exercises managerial control over the business of a licensed vehicle dealer or who supervises
vehicle salespersons employed by a licensed dealer, whether compensated by salary or
commission, including, but not limited to, any person who is employed by the dealer as a
general manager, assistant general manager, or sales manager, or any employee of a licensed
vehicle dealer who negotiates with or induces a customer to enter into a security agreement
or purchase agreement or purchase order for the sale of a vehicle on behalf of the licensed
vehicle dealer.
(b) The term “vehicle salesperson” does not include any of the following:
(1) Representatives of insurance companies, finance companies, or public officials, who in the
regular course of business, are required to dispose of or sell vehicles under a contractual
right or obligation of the employer, or in the performance of an official duty, or under the
authority of any court of law, if the sale is for the purpose of saving the seller from any loss
or pursuant to the authority of a court of competent jurisdiction.
(2) Persons who are licensed as a manufacturer, remanufacturer, transporter, distributor, or
representative.
(3) Persons exclusively employed in a bona fide business of exporting vehicles, or of soliciting
orders for the sale and delivery of vehicles outside the territorial limits of the United
States.
(4) Persons not engaged in the purchase or sale of vehicles as a business, disposing of vehicles
acquired for their own use, or for use in their business when the vehicles have been so
acquired and used in good faith, and not for the purpose of avoiding the provisions of this
code.
(5) Persons regularly employed as salespersons by persons who are engaged in a business
involving the purchase, sale, or exchange of boat trailers.
(6) Persons regularly employed as salespersons by persons who are engaged in a business activity
which does not involve the purchase, sale, or exchange of vehicles, except incidentally
in connection with the purchase, sale, or exchange of vehicles of a type not subject to
registration under this code, boat trailers, or midget autos or racers advertised as being built
exclusively for use by children.
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(7) Persons licensed as a vehicle dealer under this code doing business as a sole ownership
or member of a partnership or a stockholder and director of a corporation or a member
and manager of a limited liability company licensed as a vehicle dealer under this code.
However, those persons shall engage in the activities of a salesperson, as defined in this
section, exclusively on behalf of the sole ownership or partnership or corporation or limited
liability company in which they own an interest or stock, and those persons owning stock
shall be directors of the corporation; otherwise, they are vehicle salespersons and subject
to Article 2 (commencing with Section 11800) of Chapter 4 of Division 5.
(8) Persons regularly employed as salespersons by a vehicle dealer authorized to do business
in California under Section 11700.1 of the Vehicle Code.
Amended Ch. 1563, Stats. 1990. Effective January 1, 1991.
Amended Ch. 1200, Stats. 1994. Effective September 30, 1994.
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Temporary Permit
11803. Pending the satisfaction of the department that the applicant has met the requirements of this chapter,
it may issue a temporary permit to any person applying for a vehicle salesperson’s license. The
temporary permit shall permit the operation by the salesperson for a period of not more than 120
days while the department is completing its investigation of the applicant for the license. If the
department determines to its satisfaction that the temporary permit was issued upon a fraudulent
application or determines or has reasonable cause to believe that the application is incorrect or
incomplete or the temporary permit was issued in error, the department may cancel the temporary
permit, effective immediately. The temporary permit shall become invalid when canceled or when
the applicant’s license has been issued or refused.
Amended Sec. 10, Ch. 758, Stats. 2002. Effective January 1, 2003.
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exercise of the privilege granted. The conditions to be attached to the exercise of the privilege
shall be those which may, in the judgment of the department, be in the public interest and
suitable to the qualifications of the applicant as disclosed by the application and investigation
by the department of the information contained in the application.
(c) If the department issues or renews a vehicle salesperson’s license requiring conditions of
probation or if the department refuses to issue a vehicle salesperson’s license, the applicant
may demand in writing a hearing before the director or the director’s representative within 60
days after notice of refusal to issue or issuance of the probationary license.
(d) A person whose license has been revoked or whose application for a license has been denied
may reapply for a license after not less than one year has elapsed from the effective date of the
decision revoking the license or denying the application, except that if the decision was based
upon subdivision (a) of Section 11806, an earlier reapplication may be made accompanied
by evidence satisfactory to the department that those grounds for revocation or denial of the
license no longer exist.
Amended Ch. 1563, Stats. 1990. Effective January 1, 1991.
Display of License
11812. (a) Every vehicle salesperson licensed under this article shall, at the time of employment, deliver to
his or her employing dealer his or her salesperson’s license to be posted in a place conspicuous
to the public on the premises where he or she is actually engaged in the selling of vehicles for
the employing dealer.
(b) The license shall be displayed continuously during the employment. If a vehicle salesperson’s
employment is terminated, the license shall be returned to the salesperson.
(c) Every vehicle salesperson licensed pursuant to this article shall report in writing to the department
every change of residence address within five days of the change.
(d) Any person currently or previously licensed under this article who no longer resides at the
address last filed with the department may be served with process issued pursuant to Chapter
5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code
by registered mail at that residence, unless the person has notified the department in writing
of another address where service may be made.
Amended Ch. 1563, Stats. 1990. Effective January 1, 1991.
Term of License: Renewal
11814. (a) Every original vehicle salesperson’s license issued, and every vehicle salesperson’s license
renewed pursuant to subdivision (b), shall be valid for a period of three years from the date of
issuance unless canceled, suspended, or revoked by the department.
(b) Renewal of a vehicle salesperson’s license may be made prior to the expiration date. In no event
may a vehicle salesperson renew his or her license after the date of expiration.
(c) A salespersons license may be renewed by mail if that license was not renewed by mail for
the immediately preceding period.
(d) A salesperson shall obtain a duplicate license when the original is either lost or mutilated.
Amended Ch. 1243, Stats. 1992. Effective September 30, 1992.
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(b) To display or represent any salesperson’s license not issued to the person as being his or her
license.
(c) To fail or refuse to surrender to the department, upon its lawful demand, any salesperson’s
license which has been suspended, revoked or canceled.
(d) To permit any unlawful use of a salesperson’s license issued to him or her.
(e) To photograph, photostat, duplicate, or in any way reproduce any salesperson’s license or
facsimile thereof in such a manner that it could be mistaken for a valid license, or to display
or have in possession any such photograph, photostat, duplicate, reproduction, or facsimile
unless authorized by this code.
Amended Ch. 1563, Stats. 1990. Effective January 1, 1991.
Fees
11820. The following fees shall be paid to the department:
(a) Except as provided by Section 42231, a nonrefundable fee for the original issuance of a license,
fifty dollars ($50).
(b) Fee for license renewal, fifty dollars ($50).
(c) Fee for a duplicate license, fifteen dollars ($15).
Amended Ch. 90, Stats. 1990. Effective May, 9, 1990.
Automatic Cancellation
11822. The vehicle salesperson’s license or any permit provided in this article shall be automatically
canceled upon the failure of a licensee to pay the required fees or to file an application for renewal
of the license or permit before the date of expiration of the current license or permit.
Amended Ch. 499, Stats. 1984. Effective January 1, 1985.
6157. (a) The state, and each city, whether general law or chartered, county, and district, each subdivision,
department, board, commission, body, or agency of the foregoing, shall accept personal checks
drawn in its favor or in favor of a designated official thereof, in payment for any license, permit,
or fee, or in payment of any obligation owing to the public agency or trust deposit, if the person
issuing the check furnishes to the person authorized to receive payment satisfactory proof of
residence in this state and if the personal check is drawn on a banking institution located in
this state.
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(b) If any personal check offered in payment pursuant to this section is returned without payment,
for any reason, a reasonable charge for the returned check , not to exceed the actual costs
incurred by the public agency, may be imposed to recover the public agency’s processing and
collection costs. This charge may be added to, and become part of, any underlying obligation
other than an obligation which constitutes a lien on real property, and a different method of
payment for that payment and future payments by this person may be prescribed.
(c) The acceptance of a personal check pursuant to this section constitutes payment of the obligation
owed to the payee public agency to the extent of the amount of the check as of the date of
acceptance when, but not before, the check is duly paid.
(d) The provisions in subdivision (b) prohibiting a returned check charge being added to, and
becoming a part of, an obligation which constitutes a lien on real property do not apply to
obligations under the Veterans’ Farm and Home Purchase Act of 1974 (Article 3.1[commencing
with Section 987.50] of Chapter 6 of Division 4 of the Military and Veterans Code).
Amended Ch. 233, Stats. 1992. Effective January 1, 1993.
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