🚗 California Auto Dealer Law Update – What to Know Going Forward Quick update for anyone operating or planning to operate as a California car dealer: California is continuing to tighten consumer protection and transparency rules for auto sales. The biggest themes dealers should be preparing for are: • More pricing transparency – Total vehicle price and add-ons must be clearly disclosed upfront. • Stricter rules on add-ons – Dealers should avoid charging for products or services that don’t clearly benefit the buyer. • Used vehicle protections expanding – Proposed and upcoming changes focus heavily on used car transactions, including older vehicles and higher-mileage inventory. • Documentation & compliance – Stronger expectations around record-keeping, advertising accuracy, and contract disclosures. 👉 These rules apply to licensed dealers, including those selling older or high-mileage vehicles. The goal is protecting consumers, but dealers who stay compliant and transparent will be positioned to operate safely and scale without issues. Discussion question: How are you currently handling disclosures, add-ons, and paperwork — and where do you think your dealership could tighten up compliance?

: How to Start a Car Dealership in 5 Steps (Without Breaking the Bank) Ready to turn your passion for cars into a business but worried about the price tag? Let’s walk through how you can launch your dealership, without spending a fortune or losing sleep. Step 1: Sketch Out a Simple (But Savvy) Business PlanEver heard the phrase “measure twice, cut once?” That’s what a business plan is for your dealership dreams. It doesn’t have to be a monster of a document, either. Jot down: - What kind of cars are you selling? (Used? Imports? Trucks that could tow the Death Star?) - Who’s your customer? Young families? Commuters? Enthusiasts? - What will you charge, and how will you stand out? - Where do you want to set up shop? - How are you spreading the word? - How much money will it take to get rolling?No MBA needed — just keep it practical. Step 2: Handle Licensing and Legalese Without Going BonkersEvery state has its own hoops to jump through before you can sell your first car. You’ll typically need: - Dealer license (may require a course, paperwork, and a fee) - General business license - Sales tax permit - EIN (Employer Identification Number) - Surety bond - Local permits if you’re setting up a physical location Dig into your state’s DMV or licensing website for guides. You’ll save money doing it yourself. Step 3: Find a Location That Fits Your Budget (or Go Digital)You do NOT have to drop six figures on a flashy dealership. Options include: - Affordable lots or “hidden gem” parcels - Home-based dealerships (online sales/private showings) - Shared/co-op spaces Digital dealerships are growing! Starting online and moving to a physical space later is legit. Step 4: Get Your Funding Lined Up, Smart and LeanFund only what you need to start. Typical expenses: - Licensing fees - First month’s rent/deposit - Business insurance and bond - Basic office stuff - Initial advertising - Your first cars Funding sources include savings, loans from family, bank lines of credit, SBA microloans, or even crowdfunding.