It shall be unlawful for any lessor-retailer to make a retail sale of a vehicle of a type subject to registration without having first procured either a vehicle dealer license or a lessor-retailer license or temporary permit issued by the department or when such license or temporary permit issued by the department has been canceled, suspended, revoked, or invalidated or has expired.
Chapter 3.5Lessor-Retailers
Section § 11600
This law states that it's illegal for a business that leases and sells vehicles to sell a car that's required to be registered unless they have the appropriate license or temporary permit.
They cannot make sales if their license or permit is canceled, suspended, revoked, invalid, or expired.
lessor-retailer retail vehicle sale vehicle registration vehicle dealer license lessor-retailer license temporary permit license cancellation license suspension license revocation license expiration vehicle sales regulations unlawful vehicle sale Department of Motor Vehicles vehicle dealership compliance automotive leasing and sales
Section § 11601
This law requires anyone who leases and sells vehicles at retail in California to apply for a license with the department. Applicants must provide proof that they are genuine lessor-retailers.
Applications are necessary for both the main business location and any additional branch offices where vehicle sales occur.
The 'principal place of business' is the main office in California designated by the lessor-retailer, even if no retail sales are conducted there.
(a)CA Vehicle Code § 11601(a) Every lessor-retailer who sells at retail a vehicle of a type subject to registration shall make application to the department for a license. The applicant shall submit proof of his status as a bona fide lessor-retailer as may reasonably be required by the department.
(b)CA Vehicle Code § 11601(b) An application shall be made for the principal place of business, and a separate branch office application shall be made for each branch office location of the licensee as shall be operated and maintained by the applicant in conjunction with the retail sale or sales of vehicles.
(c)CA Vehicle Code § 11601(c) “Principal place of business,” for the purposes of this chapter, means the place designated by the lessor-retailer as the main business or office location in California whether or not retail sales are made from such location.
lessor-retailer vehicle sales license vehicle registration principal place of business branch office application retail vehicle sales licensing requirement California vehicle leasing business location designation vehicle sales regulations
Section § 11602
This law outlines the process for applying for certain types of licenses in California related to vehicle lessor-retailers. The Department provides specific forms and collects detailed information about applicants, such as fingerprints and personal history, to evaluate their character and integrity. For a lessor-retailer license, applicants must include their name and address, business name, and information about partners or corporate officers if applicable. Additionally, applicants must describe their principal business location and any branch locations. The Department will thoroughly investigate all provided information once the application and fee are submitted.
(a)CA Vehicle Code § 11602(a) The department shall prescribe and provide forms to be used for application for licenses to be issued under the terms and provisions of this chapter and require of such applicants, where appropriate as a condition precedent to issuance of such license, such information, including but not limited to, fingerprints and personal history statements, touching on and concerning the applicant’s character, honesty, integrity and reputation as it may consider necessary; provided, however, that every application for a lessor-retailer license shall contain, in addition to such information that the department may require, a statement of the following facts:
(1)CA Vehicle Code § 11602(a)(1) The name and residence address of the applicant and the trade name, if any, under which he intends to conduct his business; and if the applicant be a partnership, the name and residence address of each member thereof, whether a limited or general partner, and the name under which the partnership business is to be conducted; and if the applicant be a corporation, the name of the corporation and the name and address of each of its principal officers and directors.
(2)CA Vehicle Code § 11602(a)(2) A complete description, including the city, town or village with the street and number, if any, of its principal place of business in California and such other and additional branch location or locations.
(b)CA Vehicle Code § 11602(b) Upon receipt of an application accompanied with the appropriate fee, the department shall make a thorough investigation of the information contained in the application.
vehicle lessor-retailer license application forms fingerprints personal history statement business name partnership details corporate officers business location branch locations applicant investigation licensing process character evaluation integrity assessment trade name applicant information
Section § 11603
This section allows the Department to either issue or deny a lessor-retailer license to someone applying for it. The decision can be based on a reasonable cause. If the license is issued, it will include the applicant's name, address, and a unique identifying number.
(a)CA Vehicle Code § 11603(a) The department may issue, or for reasonable cause shown, refuse to issue, a license to any applicant applying for a lessor-retailer license or branch office location.
(b)CA Vehicle Code § 11603(b) The license shall contain the applicant’s name, location address and the general distinguishing number assigned to the applicant.
lessor-retailer license branch office location license issuance license refusal applicant name location address distinguishing number reasonable cause applying for license Department authority vehicle lessor-retailer license application process California vehicle licensing business licensing requirements
Section § 11604
The department can deny a lessor-retailer license if it finds certain issues with the applicant. These issues include having an unresolved court judgment related to the licensed activity, previous license revocation or suspension for cause, or involvement in similar problems as a business representative.
If the business has questionable management or control by individuals with problematic legal histories, this could also be a reason for denial. Convictions for crimes or acts of moral turpitude related to the license, incorrect application information, and not having a main office in California are also grounds for denial.
Additionally, if the applicant owes money to the Consumer Motor Vehicle Recovery Corporation or had a past license in another state revoked or suspended for similar reasons, the department may refuse the license. Any decision related to a past business they represented that had its license issues is also considered.
The department may refuse to issue a lessor-retailer license when it makes any of the following determinations:
(a)CA Vehicle Code § 11604(a) The applicant has outstanding an unsatisfied final court judgment rendered in connection with an activity licensed under the authority of this division.
(b)CA Vehicle Code § 11604(b) The applicant was previously the holder, or a managerial employee of the holder, of a license issued under this division which was revoked for cause and never reissued by the department, or which was suspended for cause and the terms of suspension have not been fulfilled.
(c)CA Vehicle Code § 11604(c) The applicant was previously a business representative whose license issued under this division was revoked for cause and never reissued or was suspended for cause and the terms of suspension have not been fulfilled.
(d)CA Vehicle Code § 11604(d) If the applicant is a business, a business representative was previously the holder of a license, or was a business representative of a business whose license, issued under this division, was revoked for cause and never reissued or was suspended for cause and the terms of suspension have not been fulfilled; or, by reason of the facts and circumstances related to the organization, control, and management of the business, the operation of that business will be directed, controlled, or managed by individuals who, by reason of their conviction of violations of this code, would be ineligible for a license and, by licensing that business, the purposes of this chapter would be defeated.
(e)CA Vehicle Code § 11604(e) The applicant, or a business representative if the applicant is a business, has been convicted of a crime or committed any act or engaged in conduct involving moral turpitude which is substantially related to the qualifications, functions, or duties of the licensed activity. A conviction after a plea of nolo contendere is a conviction within the meaning of this section.
(f)CA Vehicle Code § 11604(f) The applicant was previously the holder of an occupational license issued by another state, authorizing the same or similar activities of a license issued under this division; and that license was revoked or suspended for cause and was never reissued, or was suspended for cause, and the terms of suspension have not been fulfilled.
(g)CA Vehicle Code § 11604(g) The information contained in the application is incorrect.
(h)CA Vehicle Code § 11604(h) A decision of the department to cancel, suspend, or revoke a license has been made, and the applicant was a business representative of the business regulated under that license.
(i)CA Vehicle Code § 11604(i) The applicant does not have a principal place of business in California.
(j)CA Vehicle Code § 11604(j) The applicant has failed to pay the full amount of a claim paid by the Consumer Motor Vehicle Recovery Corporation, plus interest at the rate of 10 percent per annum, as described in subdivision (i) of Section 11703.
lessor-retailer license denial unsatisfied court judgment revoked license suspended license business representatives moral turpitude incorrect application principal place of business Consumer Motor Vehicle Recovery Corporation convictions related to license ineligible individuals management license eligibility business management unfulfilled license suspension nolo contendere conviction
Section § 11604.1
If there's a reason listed in this chapter for taking away or suspending a lessor-retailer's license, that same reason can be used to deny them a license in the first place.
Any cause specified in this chapter as a cause to suspend or revoke the license issued to a lessor-retailer is a cause to refuse to issue a license to a lessor-retailer.
lessor-retailer license suspension license revocation license refusal retailer licensing suspension reasons revocation reasons licensing denial issue of license license requirements business licensing retail licensing policy license eligibility denial grounds vehicle lessors
Section § 11604.5
This section explains that California's Department of Motor Vehicles can temporarily deny or suspend a business license if the applicant or business representative has been convicted of a serious crime that relates to their professional duties. This can happen even if the conviction is under appeal or not yet final. A 'no contest' plea is considered a conviction here.
If the conviction is confirmed on appeal, the temporary suspension becomes a permanent revocation of the license. If it was suspended under probation, it will continue under those terms for a limited time. However, if the conviction is overturned, the suspension must be lifted immediately.
(a)CA Vehicle Code § 11604.5(a) The department, after notice and hearing, on an interim basis, may refuse to issue or may suspend a license issued under this chapter when the applicant or licensee, or a business representative if the applicant or licensee is a business, has been convicted of a crime involving moral turpitude which is substantially related to the qualifications, functions, or duties of the licensed activity, if an appeal of the conviction is pending or the conviction has otherwise not become final. A conviction after a plea of nolo contendere is a conviction within the meaning of this section.
(b)CA Vehicle Code § 11604.5(b) When a conviction, upon which an interim refusal to issue or suspension under subdivision (a) is based, is affirmed on appeal or otherwise becomes final, the refusal to issue or suspension shall automatically take effect as a denial or revocation, as the case may be, of the license. If the interim refusal to issue or suspension was stayed under probationary terms and conditions, the subsequent automatic denial or revocation shall also be stayed under the same terms and conditions for a term not to exceed the original term of probation for the interim refusal to issue or suspension.
(c)CA Vehicle Code § 11604.5(c) If a conviction, upon which an interim refusal to issue or suspension under subdivision (a) is based, is reversed on appeal, the refusal or suspension shall be set aside immediately by the department.
interim suspension license denial business license revocation moral turpitude conviction pending appeal crime related to license duties nolo contendere automatic revocation probation terms set aside suspension appeal reversal final conviction department hearing final appeal outcome license qualifications
Section § 11605
If the department denies a license to someone who leases and sells cars, that person can ask for a hearing with the director within 60 days of being notified about the denial.
The hearing will follow specific procedures outlined in another section of government regulations.
(a)CA Vehicle Code § 11605(a) Upon refusal of the department to issue a license to a lessor-retailer, the applicant shall be entitled to demand in writing a hearing before the director or his representative within 60 days after notice of refusal.
(b)CA Vehicle Code § 11605(b) The hearing shall be conducted pursuant to the provisions of Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code.
license refusal lessor-retailer hearing request director hearing license denial appeal automobile leasing retail vehicle sales department license rejection license hearing process appeal procedure license application denial 60-day request period director representative government code hearing Chapter 5 hearing
Section § 11606
This law allows the department to issue a probationary driver's license with specific conditions, instead of refusing a license altogether, unless required by other laws. The conditions are not listed on the license itself but must align with the applicant's qualifications and public interest, as determined from their application and a departmental investigation.
Except where the provisions of this code require the refusal to issue a license, the department may issue a probationary license subject to conditions to be observed by the licensee in the exercise of the privilege granted. The conditions to be attached to the exercise of the privilege shall not appear on the face of the license but shall be such as 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 therein.
probationary driver's license license conditions driving privilege applicant qualifications departmental investigation public interest driver's license issuance license refusal license application license restrictions driving regulations conditional licensing license eligibility license requirements California DMV policy
Section § 11607
This law allows the California Department of Motor Vehicles (DMV) to issue a temporary permit to someone applying for a lessor-retailer license or a branch office while their application is under review. This temporary permit lets them operate while their full application is being investigated. However, the DMV can cancel the temporary permit if it finds the application incomplete, incorrect, or if the permit was issued by mistake. The temporary permit stops being valid once the final license is either granted or denied.
Pending the satisfaction of the department that the applicant has met the requirements under this chapter, it may issue a temporary permit to any person applying for a lessor-retailer license or branch office location. The temporary permit shall permit the operation by the lessor-retailer while the department is completing its investigation and determination of all facts relative to the qualifications of the applicant to such license. The department may cancel such temporary permit when it has determined or has reasonable cause to believe that the application is incorrect or incomplete or the temporary permit was issued in error. Such temporary permit shall be invalid when canceled or when the applicant’s license has been
issued or refused.
temporary permit lessor-retailer license branch office application review permit cancellation DMV investigation license qualifications application error permit validity license application process temporary operation license issuance qualification determination application completion permit error
Section § 11608
This law allows the Department of Motor Vehicles to issue a temporary certificate to someone managing the estate of a deceased person who held a valid business license. This temporary certificate lets them continue the business for up to a year after the person’s death, with possible one-year renewals, until the business is sold or a new license is qualified. The department can also set conditions to protect the public while the certificate is in effect.
The department may issue a certificate of convenience to the executor, executrix, administrator or administratrix of the estate of a deceased holder of a valid license issued under this chapter, or if no executor, executrix, administrator or administratrix has been appointed, and until a certified copy of an order making such appointment is filed with the department, to the widow or other heir otherwise entitled to conduct the business of the deceased, permitting such person to exercise the privileges granted by such license for a period of one year from and after the date of death and necessary one-year renewals thereafter, pending, but not later than, disposal of the business and qualification of the vendee of the business or such surviving widow, heir or other persons for such license under the provisions of this chapter. The department may restrict or condition the license and attach to the exercise of the privileges thereunder such terms and conditions as in its judgment the protection of the public requires.
certificate of convenience executor administrator estate management deceased license holder business continuation temporary license heir eligibility one-year renewal DMV restrictions public protection license privileges business disposal license transfer special conditions
Section § 11609
If you operate as a lessor-retailer selling vehicles, you must display your business license where customers can easily see it at each office location. You must also have clear signage showing your business name, location, and address to ensure customers can identify you.
Each office location operated and maintained by a lessor-retailer in conjunction with its retail sale of a vehicle or vehicles shall have posted in a place conspicuous to the public the license issued by the department to the lessor, and shall have erected or posted thereon such signs or devices providing information relating to the lessor-retailer’s name, the office location and the office address, to enable any person doing business with such lessor to identify him properly.
lessor-retailer vehicle sales business license display office signage requirements customer identification business name display office location signage public access information retail vehicle sales office license visibility address signage customer interaction business identification
Section § 11609.5
If you're selling used cars, you must put up a visible notice that tells potential buyers they can have the car checked by an independent mechanic, as long as they pay for it and you agree to it. The notice has to be at least 8 inches by 10 inches in size.
Every lessor-retailer who displays or offers one or more used vehicles for sale at retail shall post a notice not less than 8 inches high and 10 inches wide, in a place conspicuous to the public, which states the following:
“The prospective purchaser of a vehicle may, at his or her own expense and with the approval of the lessor-retailer, have the vehicle inspected by an independent third party either on or off these premises.”
used vehicles inspected by third party lessor-retailer vehicle inspection notice independent mechanic inspection conspicuous notice vehicle sale conditions retail sales buyer inspection rights vehicle inspection approval pre-purchase inspection inspection at own expense notice requirements vehicle inspection location size of notice
Section § 11610
If a lessor-retailer in California changes the location of their main business or any branch office, they must immediately inform the department. Similarly, if they stop using any business location, they need to notify the department and return their license for that location, along with any sale report books if requested. Additionally, if a business is closed, legal documents can still be sent to the last known business address unless a new address has been provided to the department.
(a)CA Vehicle Code § 11610(a) If the lessor-retailer changes the location of its principal place of business or any branch office location in California, the lessor-retailer shall immediately upon making the change notify the department.
(b)CA Vehicle Code § 11610(b) If a lessor-retailer, for any reason, ceases to be in possession of its principal place of business or any branch office location, the lessor-retailer shall immediately notify the department, and shall deliver to the department the lessor-retailer license issued for the location, and, upon demand, all report of sale books in his or her possession.
(c)CA Vehicle Code § 11610(c) Any person licensed under this chapter who has closed his or her principal place of business 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 place of business, unless the person has notified the department in writing of another address where service may be made.
lessor-retailer change of business location notification principal place of business branch office license return report of sale books department notification business closure legal service by mail alternate address for service business address update possession cessation California vehicle lessor-retailer address change process
Section § 11612
If you're applying for or renewing a lessor-retailer license for vehicles in California, you need to get a bond similar to what's required for a vehicle dealer's license. Any legal claims that could be made against a vehicle dealer's bond can also be made against a lessor-retailer's bond.
(a)CA Vehicle Code § 11612(a) Before any lessor-retailer license shall be issued or renewed by the department to any applicant therefor, the applicant shall procure and file with the department a bond meeting the same requirements as specified for a vehicle dealer’s license in Sections 11710 and 11710.2.
(b)CA Vehicle Code § 11612(b) Any cause of action or claim specified in Section 11711 against a vehicle dealer’s bond shall also be a cause of action or claim against a lessor-retailer’s bond.
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Section § 11613
This law allows the department to suspend or revoke a lessor-retailer's license if they determine that the licensee is not entitled to the license or has engaged in certain illegal activities. These activities include filing false applications, using fake names, buying or selling stolen vehicles, violating specific regulations related to vehicle registration or leasing, or submitting bad checks. Fraud or deceit, including misrepresentation and failure to disclose important information, also counts as grounds for revocation. Additionally, any behavior that would prevent a license from being granted initially can also lead to its revocation. Hearings for these matters are conducted according to specific government procedures.
(a)CA Vehicle Code § 11613(a) The department, after notice and hearing, may suspend or revoke the license issued to a lessor-retailer upon determining that the person to whom the license was issued is not lawfully entitled thereto, or has done any of the following:
(1)CA Vehicle Code § 11613(a)(1) Filed an application for the license using a false or fictitious name not registered with the proper authorities, or knowingly made any false statement or knowingly concealed any material fact, in the application for the license.
(2)CA Vehicle Code § 11613(a)(2) Used a false or fictitious name, knowingly made any false statement or knowingly concealed any material fact in any application for the registration of a vehicle, or otherwise committed a fraud in the application.
(3)CA Vehicle Code § 11613(a)(3) Knowingly purchased, sold, or otherwise acquired or disposed of a stolen motor vehicle.
(4)CA Vehicle Code § 11613(a)(4) Violated any provision of Division 3 (commencing with Section 4000) or rule or regulation adopted pursuant thereto.
(5)CA Vehicle Code § 11613(a)(5) Violated any provision of Division 4 (commencing with Section 10500) or rule or regulation adopted pursuant thereto.
(6)CA Vehicle Code § 11613(a)(6) Violated any provision of this chapter or rule or regulation adopted pursuant thereto.
(7)CA Vehicle Code § 11613(a)(7) Violated any provision of Chapter 2b (commencing with Section 2981) of Title 14 of Part 4 of Division 3 of the Civil Code or rule or regulation adopted pursuant thereto under the authority of Section 1651.
(8)CA Vehicle Code § 11613(a)(8) Submitted a check, draft, or money order to the department for any obligation or fee due the state which was thereafter dishonored or refused payment upon presentation.
(9)CA Vehicle Code § 11613(a)(9) Caused any person to suffer any loss or damage by reason of any fraud or deceit practiced on, or fraudulent representations made to, that person in the sale of a vehicle or parts or accessories thereof.
For purposes of this subdivision, “fraud” includes any act or omission which is included within the definition of either “actual fraud” or “constructive fraud” as defined in Sections 1572 and 1573 of the Civil Code, and “deceit” has the same meaning as defined in Section 1710 of the Civil Code. In addition, “fraud” and “deceit” include, but are not limited to, a misrepresentation in any manner, whether intentionally false or due to gross negligence, of a material fact; a promise or representation not made honestly and in good faith; an intentional failure to disclose a material fact; and any act within Section 484 of the Penal Code.
For purposes of this subdivision, “person” also includes a governmental entity.
(b)CA Vehicle Code § 11613(b) Any of the causes specified in this chapter as a cause for refusal to issue a license to a lessor-retailer applicant is cause to suspend or revoke a license issued to a lessor-retailer.
(c)CA Vehicle Code § 11613(c) Every hearing provided for in this section shall be conducted pursuant to Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code.
license suspension license revocation false applications fraudulent representations stolen motor vehicles false name usage bad checks vehicle regulations lessor-retailer compliance violations hearing procedures material fact concealment governmental proceedings Civil Code fraud deceit in vehicle sales
Section § 11613.5
This law allows for a settlement agreement between a license holder and the state director after a complaint is made. The director, along with the license holder and the person making the accusation, can agree to terms such as probation or fines. The maximum fine is $1,000 per violation and is based on how serious the violation is.
The agreement can be reached at any stage of the hearing process, but it must be finalized before the hearing officer makes a decision. The department must set a schedule for fines, ensuring any penalties fall within these limits. All parties involved need to sign the agreement, which must be filed with the Office of Administrative Hearings. If the license holder does not follow the agreement, it becomes void, and the department can pursue other actions or refile the complaint.
(a)CA Vehicle Code § 11613.5(a) After the filing of an accusation under this chapter, the director may enter into a stipulated compromise settlement agreement with the consent of the licensee on terms and conditions mutually agreeable to the director, the respondent licensee, and the accuser without further hearing or appeal. The agreement may include, but is not limited to, a period of probation or monetary penalties, or both. The monetary penalty shall not exceed one thousand dollars ($1,000) for each violation, and it shall be based on the nature of the violation and the effect of the violation on the purposes of this chapter.
(b)CA Vehicle Code § 11613.5(b) A compromise settlement agreement may be entered before, during, or after the hearing, but is valid only if executed and filed pursuant to subdivision (d) before the proposed decision of the hearing officer, if any, is adopted or the case is decided.
(c)CA Vehicle Code § 11613.5(c) The department shall adopt, by regulation, a schedule of maximum and minimum amounts of monetary penalties, the payment of which may be included as a term or condition of a compromise settlement agreement entered under subdivision (a). Any monetary penalty included in a compromise settlement agreement shall be within the range of monetary penalties in that schedule.
(d)CA Vehicle Code § 11613.5(d) Any compromise settlement agreement entered under this section shall be signed by the director, the respondent licensee, and the accuser, or by their authorized representatives. The director shall file, or cause to be filed, the agreement with the Office of Administrative Hearings, together with the department’s notice of withdrawal of the accusation or statement of issues upon which the action was initiated.
(e)CA Vehicle Code § 11613.5(e) If the respondent licensee fails to perform all of the terms and conditions of the compromise settlement agreement, the agreement is void and the department may take any action authorized by law notwithstanding the agreement, including, but not limited to, refiling the accusation or imposing license sanctions.
settlement agreement probation monetary penalties violation license sanctions hearing process maximum fine schedule of monetary penalties administrative hearings agreement void refiling accusation
Section § 11614
This law lists what a licensed lessor-retailer in California cannot do in their vehicle sales and advertising. They must not make false or misleading statements in ads, advertise cars not available for sale, or fail to update advertisements once a vehicle is sold. Advertisements must clearly identify vehicle details and total prices, including fees, with exceptions noted. The law bans false 'no downpayment' ads and any misrepresentations about financing terms or prices.
Lessor-retailers need to maintain a principal place of business, have a required bond, and should not let others misuse their license. They must not offer 'free' items that aren't genuinely free, misuse rebate terms, or make unsupported claims about prices. Finally, they need to comply with federal and state regulations about advertising and refrain from displaying used cars without required buyer’s guides.
No lessor-retailer licensed under this chapter may do any of the following in connection with any activity for which this license is required:
(a)CA Vehicle Code § 11614(a) Make or disseminate, or cause to be made or disseminated, before the public in this state, in any newspaper or other publication, or any advertising device, or by oral representation, or in any other manner or means whatever, any statement that is untrue or misleading and that is known, or which by the exercise of reasonable care should be known, to be untrue or misleading; or make or disseminate, or cause to be made or disseminated, any statement as part of a plan or scheme with the intent not to sell any vehicle, or service so advertised, at the price stated therein, or as so advertised.
(b)CA Vehicle Code § 11614(b) Advertise, or offer for sale in any manner, any vehicle not actually for sale at the premises of the lessor-retailer or available within a reasonable time to the lessor-retailer at the time of the advertisement or offer.
(c)CA Vehicle Code § 11614(c) Fail within 48 hours to give, in writing, notification to withdraw any advertisement of a vehicle that has been sold or withdrawn from sale.
(d)CA Vehicle Code § 11614(d) Advertise any specific vehicle for sale without identifying the vehicle by its model, model year, and either its license number or that portion of the vehicle identification number that distinguishes the vehicle from all other vehicles of the same make, model, and model-year. Model-year is not required to be advertised for current model-year vehicles. Year models are no longer current when ensuing year models are available for purchase at retail in California.
(e)CA Vehicle Code § 11614(e) Advertise the total price of a vehicle without including all costs to the purchaser at the time of delivery at the lessor-retailer’s premises, except sales tax, vehicle registration fees, finance charges, certificate of compliance or noncompliance fees not exceeding thirty-five dollars ($35) pursuant to any statute, and any dealer documentary preparation charge. The dealer documentary charge shall not exceed thirty-five dollars ($35).
(f)Copy CA Vehicle Code § 11614(f)
(1)Copy CA Vehicle Code § 11614(f)(1) Fail to disclose, in an advertisement of a vehicle for sale, that there will be added to the advertised total price, at the time of sale, charges for sales tax, vehicle registration fees, the fee charged by the state for the issuance of any certificate of compliance or noncompliance pursuant to any statute, finance charges, or any dealer documentary preparation charge.
(2)CA Vehicle Code § 11614(f)(2) For purposes of paragraph (1), “advertisement” means any advertisement in a newspaper, magazine, direct mail publication, or handbill that is two or more columns in width or one column in width and more than seven inches in length, or on any Web page of a lessor-retailer’s Web site that displays the price of a vehicle offered for sale on the Internet, as that term is defined in paragraph (6) of subdivision (e) of Section 17538 of the Business and Professions Code.
(g)CA Vehicle Code § 11614(g) Advertise or otherwise represent, or knowingly allow to be advertised or represented on the lessor-retailer’s behalf or at the lessor-retailer’s place of business, that no downpayment is required in connection with the sale of a vehicle when a downpayment is in fact required and the buyer is advised or induced to finance the downpayment by a loan in addition to any other loan financing the remainder of the purchase price of the vehicle. The terms “no downpayment,” “zero down delivers,” or similar terms shall not be advertised unless the vehicle will be sold to any qualified purchaser without a prior payment of any kind or trade-in.
(h)CA Vehicle Code § 11614(h) Refuse to sell a vehicle to any person at the advertised total price, exclusive of sales tax, vehicle registration fees, finance charges, certificate of compliance or noncompliance pursuant to any statute, and any dealer documentary preparation charge, which charges shall not exceed thirty-five dollars ($35) for the documentary preparation charge and thirty-five dollars ($35) for the certificate of compliance or noncompliance pursuant to any statute, while the vehicle remains unsold or unleased, unless the advertisement states the advertised total price is good only for a specified time and the time has elapsed.
(i)CA Vehicle Code § 11614(i) Engage in the business for which the licensee is licensed without having in force and effect a bond required by Section 11612.
(j)CA Vehicle Code § 11614(j) Engage in the business for which the lessor-retailer is licensed without at all times maintaining a principal place of business and any branch office location required by this chapter.
(k)CA Vehicle Code § 11614(k) Permit the use of the lessor-retailer license, supplies, or books by any other person for the purpose of permitting that person to engage in the sale of vehicles required to be registered under this code, or to permit the use of the lessor-retailer license, supplies, or books to operate a branch office location to be used by any other person, if, in either situation, the licensee has no financial or equitable interest or investment in the vehicles sold by, or the business of, or branch office location used by, the person, or has no interest or investment other than commissions, compensations, fees, or any other thing of value received for the use of the lessor-retailer license, supplies, or books to engage in the sale of vehicles.
(l)CA Vehicle Code § 11614(l) Violate any provision of Article 10 (commencing with Section 28050) of Chapter 5 of Division 12.
(m)CA Vehicle Code § 11614(m) Represent the dealer documentary preparation charge, or certificate of compliance or noncompliance fee, as a governmental fee.
(n)CA Vehicle Code § 11614(n) Advertise free merchandise, gifts, or services provided by a lessor-retailer contingent on the purchase of a vehicle. “Free” includes merchandise or services offered for sale at a price less than the lessor-retailer’s cost of the merchandise or services.
(o)CA Vehicle Code § 11614(o) Advertise vehicles and related goods or services with the intent not to supply reasonably expectable demand, unless the advertisement discloses a limitation of quantity.
(p)CA Vehicle Code § 11614(p) Use the term “rebate” or similar words such as “cash back” in advertising the sale of a vehicle.
(q)CA Vehicle Code § 11614(q) Require a person to pay a higher price for a vehicle and related goods or services for receiving advertised credit terms than the cash price the same person would have to pay to purchase the same vehicle and related goods or services. For the purpose of this subdivision, “cash price” has the meaning as defined in subdivision (e) of Section 2981 of the Civil Code.
(r)CA Vehicle Code § 11614(r) Misrepresent the authority of a representative or agent to negotiate the final terms of a transaction.
(s)CA Vehicle Code § 11614(s) Violate any law prohibiting bait and switch advertising, including, but not limited to, the guides against bait advertising set forth in Part 238 of Title 16 of the Code of Federal Regulations, as those regulations read on January 1, 1988.
(t)CA Vehicle Code § 11614(t) Make any untrue or misleading statement indicating that a vehicle is equipped with all the factory installed optional equipment the manufacturer offers, including, but not limited to, a false statement that a vehicle is “fully factory equipped.”
(u)CA Vehicle Code § 11614(u) Advertise any underselling claim, such as “we have the lowest prices” or “we will beat any dealer’s price,” unless the lessor-retailer has conducted a recent survey showing that the lessor-retailer sells its vehicles at lower prices than any other licensee in its trade area and maintains records to adequately substantiate the claim. The substantiating records shall be made available to the department upon request.
(v)CA Vehicle Code § 11614(v) To display or offer for sale any used vehicle unless there is affixed to the vehicle the Federal Trade Commission’s Buyer’s Guide as required by Part 455 of Title 16 of the Code of Federal Regulations.
(w)CA Vehicle Code § 11614(w) This section shall become operative on July 1, 2001.
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Section § 11614.1
This law sets rules for lessor-retailers (those who lease and sell vehicles) when advertising their vehicles. They must accurately show the vehicle being sold in pictures and avoid showing options not included in the price. If a vehicle was used for business purposes like as a rental or demo, this must be clearly mentioned in ads, and such vehicles cannot be called 'new.'
Used vehicles must clearly be labeled as 'used.' If advertising credit terms, like 'on approved credit,' this must be clear and easy to understand. Advertisements cannot suggest 'everyone is financed' unless truly offering credit to anyone. Downpayment ads must show the total amount needed before getting the vehicle. Any related disclosures, such as sale prices or qualifying terms, must be clear but have no specific size requirement by law.
No lessor-retailer licensed under this chapter may do any of the following in connection with any activity for which this license is required:
(a)CA Vehicle Code § 11614.1(a) Use a picture in connection with any advertisement of the price of a specific vehicle or class of vehicles, unless the picture is of the year, make, and model being offered for sale. The picture may not depict a vehicle with optional equipment or a design not actually offered at the advertised price.
(b)CA Vehicle Code § 11614.1(b) Advertise a vehicle for sale that was used by the selling lessor-retailer in its business as a demonstrator, executive vehicle, service vehicle, rental, loaner, or lease vehicle, unless the advertisement clearly and conspicuously discloses the previous use made by that licensee of the vehicle. An advertisement may not describe any of those vehicles as “new.”
(c)CA Vehicle Code § 11614.1(c) Advertise any used vehicle of the current or prior model-year without expressly disclosing the vehicle as “used,” “previously owned,” or a similar term that indicates that the vehicle is used, as defined in this code.
(d)CA Vehicle Code § 11614.1(d) Use the terms “on approved credit” or “on credit approval” in an advertisement for the sale of a vehicle unless those terms are clearly and conspicuously disclosed and unabbreviated.
(e)CA Vehicle Code § 11614.1(e) Advertise an amount described by terms such as “unpaid balance” or “balance can be financed” unless the total sale price is clearly and conspicuously disclosed and is in close proximity to the advertised balance.
(f)CA Vehicle Code § 11614.1(f) Advertise credit terms that fail to comply with the disclosure requirements of Section 226.24 of Title 12 of the Code of Federal Regulations. Advertisements of terms that include escalated payments, balloon payments, or deferred downpayments shall clearly and conspicuously identify those payments as to amounts and time due.
(g)CA Vehicle Code § 11614.1(g) Advertise claims such as “everyone financed,” “no credit rejected,” or similar claims unless the dealer is willing to extend credit to any person under any and all circumstances.
(h)CA Vehicle Code § 11614.1(h) Advertise the amount of any downpayment unless it represents the total payment required of a purchaser prior to delivery of the vehicle, including any payment for sales tax or license. A statement such as “$____ delivers,” is an example of an advertised downpayment.
(i)CA Vehicle Code § 11614.1(i) Fail to clearly and conspicuously disclose in an advertisement for the sale of a vehicle any disclosure required by this code or any qualifying term used in conjunction with advertised credit terms. Unless otherwise provided by statute, the specific size of disclosures or qualifying terms is not prescribed.
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Section § 11615
This California law makes it illegal for lessor-retailers, who lease vehicles, to break certain rules when selling cars at retail. These rules include ensuring the sold vehicles meet safety equipment standards, providing the buyer with a proper title, following tax codes, not trading in other vehicles as payment, only selling vehicles previously leased or rented, and selling cars only at authorized locations.
It shall be unlawful and a violation of this code for a lessor-retailer licensed under this chapter when selling at retail a vehicle in a transaction for which this license is required:
(a)CA Vehicle Code § 11615(a) To deliver, following sale, a vehicle for operation on California highways, if such vehicle does not meet all of the equipment requirements of Division 12 (commencing with Section 24000) of this code.
(b)CA Vehicle Code § 11615(b) To fail to deliver to a transferee lawfully entitled thereto a properly endorsed certificate of ownership.
(c)CA Vehicle Code § 11615(c) To violate any of the terms or provisions of Part 5 (commencing with Section 10701) of Division 2 of the Revenue and Taxation Code or rules and regulations adopted pursuant thereto or adopted pursuant to Section 1651 of this code.
(d)CA Vehicle Code § 11615(d) To take a vehicle in trade in part or total payment for a vehicle sold by the lessor-retailer.
(e)CA Vehicle Code § 11615(e) To sell a vehicle which has not been previously leased, bailed or rented or acquired or contracted for lease or rental by the lessor-retailer.
(f)CA Vehicle Code § 11615(f) To display a vehicle for sale at a location other than the principal place of business or branch office authorized by the department for that lessor-retailer.
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Section § 11615.5
This law makes it illegal for someone with a dealer license to sell a motor vehicle in retail, except to the person leasing the vehicle, unless they report the sale to the DMV and pay any due sales tax. The vehicle must be registered or identified according to the law.
It is unlawful and a violation of this code for a person holding a license under this chapter to make a retail sale of a motor vehicle, except to the lessee of such vehicle, required to be registered pursuant to Division 3 (commencing with Section 4000) or subject to identification pursuant to Division 16.5 (commencing with Section 38000) if such person files with the department a report of sale as provided in Section 4456 with respect to such retail sale, without making the return and payment of any sales tax due and required by Section 6451 of the Revenue and Taxation Code.
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Section § 11616
If you buy a vehicle from a lessor-retailer and pay more money for license or title transfer fees than what was actually due, or more than the lessor-retailer had already paid to avoid late penalties, they must refund the extra money to you. They have to do this even if you don't ask for a refund.
If a purchaser of a vehicle pays to the lessor-retailer an amount for the licensing or transfer of title of the vehicle, which amount is in excess of the actual fees due for such licensing or transfer, or which amount is in excess of the amount which has been paid, prior to the sale, by the lessor-retailer to the state in order to avoid penalties that would have accrued because of late payment of such fees, the lessor-retailer shall return such excess amount to the purchaser, whether or not such purchaser requests the return of the excess amount.
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Section § 11617
A license for lessor-retailers in California is automatically canceled if certain events happen. These include: moving or abandoning the main place of business without notifying the department, failing to maintain a necessary bond, surrendering the license, changing the licensee without informing the department, losing corporate status, and having a seller’s permit suspended by tax authorities. Even if a license is surrendered, the department can still decide to suspend or revoke it. Also, if a branch office location is moved or abandoned without notice, the branch office's license will be canceled.
(a)CA Vehicle Code § 11617(a) The license provided for in this chapter shall be automatically canceled upon the happening of any of the following:
(1)CA Vehicle Code § 11617(a)(1) The abandonment of the principal place of business of the lessor-retailer or the change thereof without notice to the department as provided in Section 11610.
(2)CA Vehicle Code § 11617(a)(2) The failure of the licensee to maintain an adequate bond or to procure and file another bond as required by Section 11612 prior to the effective date of the termination by the surety of any existing bond.
(3)CA Vehicle Code § 11617(a)(3) The voluntary or involuntary surrender
for any cause by the licensee of the license, except that a surrender of the license, or cessation of business by the licensee, or the suspension or revocation of the corporate status of the licensee, does not preclude the filing of an accusation for revocation or suspension of the surrendered license as provided in Section 11613, and does not affect the department’s decision to suspend or revoke the license. The department’s determination to suspend or revoke the license may be considered in issuing or refusing to issue any subsequent license authorized by this division to that licensee or any business representative of that licensee.
(4)CA Vehicle Code § 11617(a)(4) Notification to the department that the person designated as licensee has changed.
(5)CA Vehicle Code § 11617(a)(5) The suspension or cancellation of the corporate
status of the licensee.
(6)CA Vehicle Code § 11617(a)(6) The suspension, revocation, or cancellation of the seller’s permit of the licensee by the California Department of Tax and Fee Administration pursuant to Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code.
(b)CA Vehicle Code § 11617(b) The branch office location license provided for in this chapter shall be automatically canceled upon the abandonment of the branch office location of the lessor-retailer or the change of that branch office without notice to the department as provided in Section 11610.
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Section § 11618
This law allows the department to temporarily suspend a lessor-retailer's license for up to 30 days if the director believes it is in the public's best interest. A hearing must be held and a decision made within 30 days of the suspension notice. The hearing must follow specific government procedures.
The department may, pending a hearing, temporarily suspend the license issued to a lessor-retailer for a period not to exceed 30 days, if the director finds that such action is required in the public interest. In any such case a hearing shall be held and a decision thereon issued within 30 days after notice of the temporary suspension.
Every hearing as provided for in this section shall be pursuant to the provisions of Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code.
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Section § 11620
In California, any occupational license issued lasts for a year from the end of the month it was issued. To renew it for the following year, the person must apply and pay the fee before it expires.
Renewal applications should be submitted within 90 days leading up to the expiration date, using a form from the department and paying the annual renewal fee.
If you miss renewing by the expiration date, you have 30 more days to apply, but you'll need to pay both the renewal and a penalty fee.
If you don't renew within those extra 30 days, you lose the chance to renew the license altogether.
(a)CA Vehicle Code § 11620(a) Every occupational license issued under this chapter shall be valid for a period of one year from midnight of the last day of the month of issuance. Except as provided in subdivision (c), renewal of an occupational license for the ensuing year may be obtained by the person to whom the occupational license was issued upon application to the department and payment of the fee provided in this code.
(b)CA Vehicle Code § 11620(b) Every application for the renewal of an occupational license which expires pursuant to this section shall be made by the person to whom issued not more than 90 days prior to the expiration date, and shall be made by presenting the completed application form provided by the department and by payment of the full annual renewal fee for the occupational license.
(c)CA Vehicle Code § 11620(c) If the application for renewal of the occupational license is not made by midnight of the expiration date, the application may be made within 30 days following expiration of the license by paying the annual renewal fee and a penalty fee equal to the amount of the original application fee for each occupational license held.
(d)CA Vehicle Code § 11620(d) In no event may the licensee renew the occupational license after the expiration of the 30-day period authorized in subdivision (c).
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