Beginning in October of 2022, the Department of Motor Vehicles (DMV) streamlined its occupational licensing department, moving many functions to the online portal. Previously, a buyer of a dealership had to submit an original dealer application and application fee payment to its local DMV Occupational Licensing Branch, which then moved the process to the next step.

Now, dealers must access the DMV’s online portal to submit paperwork, initiate Livescans, and request site visits, among other tasks. As well as submitting paperwork to the DMV, buying dealers must apply for an Automotive Repair Dealer (ARD) license through the Bureau of Automotive Repair (BAR). BAR tends to be very efficient and processes applications rather quickly, but dealers should keep in mind that the whole process, including DMV applications, can take anywhere from two to six weeks and should plan as early as possible.

For more information on issues that can arise during the buy-sell process, please click to read the article “DMV/BAR Issues to Watch for During Buy-Sell Transactions,” by Tim Robinett of Manning, Leaver, Bruder & Berberich, LLP.

While moves toward modernization are applauded, with any new system can come some growing pains. We have heard reports via the Legal Hotline of system issues and slowdowns in processing applications for dealer licenses and, in some instances, even salesperson licenses through the online portal.

The bottom line is to be sure to consider these aspects of the buying process, ensuring paperwork is processed as early as possible, especially as the kinks are worked out of the newer online portal. While our experience with the entities issuing requisite licenses to open the doors to a new dealership has generally been helpful and efficient, early preparation could be the key to whether that ribbon gets cut at the grand opening.

If you have any questions about this topic or are having issues with occupational licensing, please reach out to us via the Legal Hotline at (916) 441-2599 or legalhotline@cncda.org.