retail used car dealer $50k surety bond

DMV Zoning Approval

All dealer license applicants must select the type of dealership. That selection will determine the requirements for local zoning approval. Zoning approval is delivered in writing to the DMV using:

DMV OL-902 Property Use Verification Form

Wholesale Only dealerships may be home based with separate entrance requirements met. The DMV inspector must be able to walk from the street to your office without passing thru personal living space. Garage offices are NOT allowed. Your location will be inspected.

Retail Dealers must have a unique and separate address from any other dealership. Mixed use with another business is allowed with separate office space and clearly marked signage and parking.

AutoBrokers are required to have a sign and a commercial location but no parking is required.

Some locations require a conditional use permit for approval.

Call Sony Duong for conditional use permit assistance, 714-677-0843

 

DMV Car Dealer Surety Bond

All dealer license applicants must select the type of dealership which then must have the appropriate bond. The bond is a pot of gold to protect the government and allows a payout when the dealer fails to post DMV fees, when the dealer fails to post sales tax or when the dealer fails to honor a judgement, a judge’s order. The most common method to post a bond is to rent the money and pay an annual fee. Some dealers are required to post a cash deposit or have a co-signer.

If you must post an all cash bond the DMV holds your cash for three years beyond the dealership closure. Your collective dealership credit sets the price of the annual bond fee.

Each bond has a twelve month life and a three year period to make claim upon the bond.

All dealer license applicants must select the type of surety bond they wish to post.

The choices are:

Wholesale Only

Wholesale dealers selling 24 units per year or less require a $ 10k bond.

Wholesale dealers selling 25 units or more per year require a $ 50k bond.

Retail

All retail dealers, except motorcycles require a $ 50k bond.

AutoBroker Endorsement

Any dealer, wholesale or retail, with a $50k bond, may choose to become a broker.

These TriStar instructors offer dealer surety bond assistance for an additional fee:

Sony Duong, English, Vietnamese and Chinese, 714-677-0843

Mike Ramos, English and Spanish, 714-797-5780

FTC buyers guide penalty raised to $ 40,000.

By: Jim Radogna 

The Federal Trade Commission announced that effective August 1, 2016, the maximum civil penalty amount has increased from $16,000 to $40,000 per occurrence for a number of violations of the FTC Act, including those that address unfair or deceptive acts or practices (UDAP).

The FTC’s UDAP regulations are extremely broad and cover virtually every aspect of a dealer’s sales and finance operations. UDAP claims can be founded on oral misrepresentations, the failure to disclose, or ambiguous statements that are technically accurate, but deceptive as interpreted by the consumer. In recent years, the FTC has identified auto dealers as a major target for enforcement actions. Here are some examples of potential violations that dealers can be accused of:

  • Engaging in false or misleading advertising
  • Making false statements or failing to disclose material facts to a consumer
  • Oral promises made to the customer that the dealer fails to deliver upon
  • Failure to disclose known vehicle history
  • Adding the cost of an F&I product to a consumer’s purchase agreement or lease without first obtaining the consumer’s express consent to purchase the product
  • Payment Packing or “jamming” F&I products
  • “Yo-yo” financing
  • Falsifying credit information
  • Failure to safeguard customer information
  • Used Car Rule (buyer’s guide) violations

While history shows us that it’s unlikely the FTC will assess the maximum penalties available, the fact that they have more than doubled the maximum amount likely indicates that the fines moving forward will be far greater than we’ve seen in the past. Also keep in mind that these penalties can be assessed per violation, per day;so they can add up quickly.For example, an FTC representative used this example for potential advertising violation penalties during a 2014 webinar on the subject: “If an unlawful advertisement goes up on Day 1 and the dealer keeps it up until Day 90, or the FTC enforcement unit catches it on Day 90, the dealer could be liable for 90 days of violations.”

It’s never been more important for dealerships to have a comprehensive compliance management system in place. What are you waiting for???

Bio: Jim Radogna is a nationally-recognized auto industry consultant specializing in dealership sales and finance department legal compliance. His background includes founding and operating a national compliance consulting firm as well as having spent over 15 years in various dealership management positions.

Being well-versed in all aspects of dealership operations, Jim has used his knowledge and industry experience to develop unique, no-nonsense compliance and reputation management solutions for automobile dealerships of all sizes. These programs are designed to not only protect dealerships from liability, but also greatly enhance the company’s reputation, increase profitability through consistent processes, and increase customer satisfaction and retention.

Jim is a sought-after speaker and frequent contributor to several automotive industry publications including Dealer Magazine, Automotive News, WardsAuto, Auto Dealer Monthly, DrivingSales Dealership Innovation Guide, AutoSuccess, CBT News Magazine, and F&I Magazine. In addition, he has participated in Automotive News, DealerOn, DealersEdge, and KPA webinars and is featured in instructional videos for DrivingSales University and the College of Automotive Management.

dealerplate

jim walsh @fleetsaleswest…..cheat the government…..go to prison

TRaCE Tracks Tow Trucker’s Tax-Dodging Scheme

Sacramento – An Oregon man’s five-year tax fraud scheme, which defrauded California out of approximately $250,000, ended on Jan. 7, 2016, with the sentencing of James Robert Walsh, 48, in Sacramento County Superior Court.

A joint investigation by California’s Tax Recovery and Criminal Enforcement (TRaCE) Task Force, Board of Equalization (BOE), and Department of Motor Vehicles (DMV) led to Walsh’s arrest and conviction on one felony count of tax evasion, and another of perjury.

“This is indicative of TRaCE’s efforts to level the playing field and recapture state funds lost to the black market,” said BOE Chairman Jerome E. Horton.

“Criminal tax evasion damages legitimate businesses and places a higher tax burden on law-abiding citizens,” said BOE Vice Chair George Runner. “Thank you to law enforcement and the agencies involved for getting to the bottom of this.”

Walsh was sentenced to two years in jail and ordered to pay $42,000 to DMV as restitution for unpaid registration fees and $189,000 to BOE for unpaid sales taxes.

From 2009 to 2014, Walsh operated a business headquartered in Oregon that sold large rigs used for towing disabled “big rig” trucks to California buyers. Each rig sold for more than $200,000.

Walsh’s five-year scheme involved charging California customers the applicable sales tax (usually about 8 percent) on each new vehicle, then registering the vehicle for the customer after altering paperwork on each transaction an average of $20,000. Walsh eagerly pocketed the extra money while paying reduced registration fees to the California DMV. Investigators proved that on more than 140 vehicle transactions Walsh falsely declared to DMV “under penalty of perjury” that the altered sales price was accurate.

This single case is an example of how the underground economy preys on trusting customers while robbing California of revenue that should be used for vital public services.


The five-member California State Board of Equalization (BOE) is a publicly elected tax board. The BOE collects $60.5 billion annually in taxes and fees supporting state and local government services. It hears business tax appeals, acts as the appellate body for franchise and personal income tax appeals, and serves a significant role in the assessment and administration of property taxes. For more information on other taxes and fees in California, visit www.taxes.ca.gov.

Note: This news release may discuss complex tax laws and concepts. It may not address every situation, and is not considered written advice under Revenue and Taxation Code section 6596. Changes in law or regulations may have occurred since the time this news release was written. If there is a conflict between the text of this news release and the law, decisions will be based upon the law and not this news release. For specific help, please contact the BOE at 1-800-400-7115.

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CALIFORNIA & OREGON DEALERSHIPS OPERATED BY JIM WALSH

TWITTER HANDLE @fleetsaleswest

WE ARE UNAWARE IF MR. JIM WALSH IS RESTRICTED

IN HIS ABILITY TO SELL TOW TRUCKS UNDER TERMS OF HIS PLEA AGREEMENT

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Fleet Sales West, An Industry Leader

In January 2000, three extraordinary Towing Industry Professionals realized that there was a need for a Towing Company that focused on serving the Recovery Industry. These leaders, Gary Coe, Donna Coe and Jim Walsh founded the company Fleet Sales West L.L.C. This company was designed by towers for towers, which means that our,Tow Trucks, Auto Loader Wreckers, and Flat Bed Car Carriers are designed with you, the tower, in mind.

Each truck is designed to your specifications with our recommendations. Fleet Sales West L.L.C. features Custom Ordered Chassis, Quality Built Towing and Side Puller Equipment, as well as the industry’s most comprehensive selection of New and Used Tow Trucks for Sale. They are dealers of the finest equipment from leaders like Chevron and Vulcan and they are the largest Chevron Dealer in the Western United States.

They also distribute equipment from Federal Signal, Maxxima, MKG, Warn Winch and Ramsey Winch.

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Main Location Information
WEST COAST TOWING EQUIPMENT LP
3030 POWER INN RD
SACRAMENTO CA  95826
Tel: (916)731-8233
Location Opened : 08/10/2005
Location Closed:
Licensed to Provide,
Offer or Sell:
Used Auto/Commercial Vehicle Dealer.
License Information
License No.: 64013
License First Issued: 08/10/2005
Operator or Contact:
Owner of Business: NORTHWEST TOW HOLDINGS LLC

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Main Location Information
GOLDEN WEST TOWING EQUIPMENT  LP
1850 EAST ORANGETHORPE AVE   STE A
FULLERTON CA  92831
Tel: (714)779-6000
Location Opened : 06/13/2012
Location Closed:
Licensed to Provide,
Offer or Sell:
Used Auto/Commercial Vehicle Dealer.
License Information
License No.: 42525
License First Issued: 06/05/2008
Operator or Contact:
Owner of Business: COVARRUBIAS OSCAR J

dmv car dealer licensing procedure

dlrplate8857

If you are inspired to open a new wholesale dealership business in California, there are a few administrative and financial steps that you will have to take first. Becoming a wholesale dealer is different from new or used auto dealers, as these businesses sell vehicles directly to the general public. As a wholesale dealer, your activity boils down only to selling to other car dealers. You can purchase the vehicles from car auctions or from other car dealers. The sales limit in California is 24 vehicles per year with the minimal bond of $ 10,000 and if you sell 25 or more you need the $50,000 bond.

Obtaining a wholesale dealer license in California is a complicated process, it is good to be prepared and informed about the various steps and requirements. Read on for some useful tips on how to tackle the licensing and how to save time and money on the requirements.

Just the basics

Naturally, the first place to start your licensing endeavor is the California Department of Motor Vehicles website.

Reading carefully through the Application Check List will give you a thorough idea of the required documents and fees.

California DMV

California DMV Occupational Licensing
When you are ready to meet the requirements, you can proceed with the Application for Original Occupational License and the rest of the paperwork found on the checklist.

DMV Licensing procedure

You will also have to undergo a Dealer Education Program and receive a Certificate of Completion.

The best California Car Dealer School is run at gotplates.com

The licensing process includes completing the Personal History Questionnaire

You must provide a copy of your Fictitious Business Name Statement.

Zoning approval, even for a home based office location for wholesale dealers is required.

You must provide a rental or lease agreement for a physical space or a proof of ownership.

Our license builder, Azita Rezaei can assist you with the license building process

You can reach Azita at 415-730-3137

You must get bonded

The wholesale dealer surety bond for the State of California will be $10,000 for wholesale less than 24 cars per year and $ 50,000 for wholesale of 25 cars per year or more.

 You will need to supply a signed copy of the original in your application package.

The car dealer bond is a protection for your clients and for the state. The car dealer bond functions as a guarantee that your business will pay all of its obligations of sales & use tax, dmv fees and ANY judge’s order to pay. Failure to comply with all applicable state regulations could result in bond activation which requires immediate repayment to the bonding company.

The bond price is a percentage of the car dealer bond amount. Your application will determine your car dealer bond price and is based on your personal credit.

Car Dealer Bond Application

How to Become a Licensed California Car Dealer Checklist

Car Dealer License Application

Gotplates Car Dealer School

DMV Licensed Salesperson School

Car Dealer Vehicle History Reports

Used Car Dealer Insurance

Car Dealer Forms Starter Kit

Licensed Salesperson Application

Car Dealer Registration Guide

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DMV CERTIFIED CAR DEALER EDUCATION

SINCE 1998

800-901-5950

how to become a licensed california car dealer checklist

dlrplate8857

If you are inspired to open a new wholesale dealership business in California, there are a few administrative and financial steps that you will have to take first. Becoming a wholesale dealer is different from new or used auto dealers, as these businesses sell vehicles directly to the general public. As a wholesale dealer, your activity boils down only to selling to other car dealers. You can purchase the vehicles from car auctions or from other car dealers. The sales limit in California is 24 vehicles per year with the minimal bond of $ 10,000 and if you sell 25 or more you need the $50,000 bond.

Obtaining a wholesale dealer license in California is a complicated process, it is good to be prepared and informed about the various steps and requirements. Read on for some useful tips on how to tackle the licensing and how to save time and money on the requirements.

Just the basics

Naturally, the first place to start your licensing endeavor is the California Department of Motor Vehicles website.

Reading carefully through the Application Check List will give you a thorough idea of the required documents and fees.

California DMV

California DMV Occupational Licensing
When you are ready to meet the requirements, you can proceed with the Application for Original Occupational License and the rest of the paperwork found on the checklist.

DMV Licensing procedure

You will also have to undergo a Dealer Education Program and receive a Certificate of Completion.

The best California Car Dealer School is run at gotplates.com

The licensing process includes completing the Personal History Questionnaire

You must provide a copy of your Fictitious Business Name Statement.

Zoning approval, even for a home based office location for wholesale dealers is required.

You must provide a rental or lease agreement for a physical space or a proof of ownership.

Our license builder, Azita Rezaei can assist you with the license building process

You can reach Azita at 415-730-3137

You must get bonded

The wholesale dealer surety bond for the State of California will be $10,000 for wholesale less than 24 cars per year and $ 50,000 for wholesale of 25 cars per year or more.

 You will need to supply a signed copy of the original in your application package.

The car dealer bond is a protection for your clients and for the state. The car dealer bond functions as a guarantee that your business will pay all of its obligations of sales & use tax, dmv fees and ANY judge’s order to pay. Failure to comply with all applicable state regulations could result in bond activation which requires immediate repayment to the bonding company.

The bond price is a percentage of the car dealer bond amount. Your application will determine your car dealer bond price and is based on your personal credit.

Car Dealer Bond Application

How to Become a Licensed California Car Dealer Checklist

Car Dealer License Application

Gotplates Car Dealer School

DMV Licensed Salesperson School

Car Dealer Vehicle History Reports

Used Car Dealer Insurance

Car Dealer Forms Starter Kit

Licensed Salesperson Application

Car Dealer Registration Guide

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DMV CERTIFIED CAR DEALER EDUCATION

SINCE 1998

800-901-5950

are you looking to get licensed in citrus heights ???

CITRUS HEIGHTS DEALER TRAINING

dealerplate

gotplates.com is run by TriStar Motors LLC

the leader in dmv certified car dealer education since 1998

gotplates.com is the only dmv certified teacher

with an actual retail dealer / broker license

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we teach in 39 cities thruout california including:

CITRUS HEIGHTS CAR DEALER SCHOOL

instructor cell

JOSEPH 415-730-3131

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Car Dealer FAQ

Car Dealer Practice Exam

Car Dealer Bond Application

Car Dealer License Insurance

Car Dealer Vehicle History Reports

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dlr plate 4

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DMV Certified Car Dealer School

since 1998

800-901-5950

stockton car dealer school…we are not pretending to be car dealers

When you take a close look

at the DMV list of car dealer schools

you may not notice that only one teaching group

is actually a licensed retail dealer with a broker endorsement

TriStar Motors LLC Dealer / Broker License 35862 since 1998

dealerplate

WHY is that so important ???

It takes real life experience to truly teach you how to become a car dealer

we are NOT attorneys

we are NOT retired DMV inspectors

we are NOT bond or insurance agents

we are NOT salespeople selling forms and software

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we ARE real life career educators

we ARE licensed retail dealer / brokers

we ARE the best car dealer trainers in california

we ARE a full service operation with 39 locations in the state of California

===

got2

gotplates.com

800-901-5950