2020 Ownership Choices

You have four choices to hold dealer ownership. Your choice may dictate who may represent your dealership. Your choice will determine who can use dealer plated vehicles. Sole Proprietor ( Single Owner ) Partnership ( Multiple Owners ) Corporation ( Owners as Shareholders ) Limited Liability Company ( Owners as …

Personal Use Tax

When a dealer uses their dealer plate to operate an inventory vehicle for personal use a small amount of use tax is required per the CDTFA Take the cost of the vehicle including reconditioning costs use the CDTFA divisor of 40 to obtain the taxable monthly base Report this amount …

Dealer Insurance is Mandatory

California law requires all dealers to maintain insurance while operating inventory vehicles using dealer license plates. DMV Licensing cites the following code section: 16020. (a) CVC All drivers and all owners of a motor vehicle shall at all times be able to  establish financial responsibility pursuant to Section 16021, and shall at all times carry in the vehicle evidence of the form of financial responsibility in effect for the vehicle. EZ Simple Compliance REAL …