AB 625

Under current law, a motor vehicle wholesaler is prohibited from doing

business in this state without a license issued by the Department of Transportation.

A “wholesaler” is defined as a person, other than a licensed motor vehicle dealer or

motor vehicle auction dealer, who 1) sells more than five used motor vehicles in any

12-month period to motor vehicle dealers, motor vehicle auction dealers, or salvage

dealers; 2) purchases used motor vehicles from a motor vehicle dealer or at a motor

vehicle auction for the purpose of selling the vehicles to a motor vehicle dealer, motor

vehicle auction, or wholesaler; or 3) purchases used motor vehicles on behalf of a

motor vehicle dealer.

This bill provides that a motor vehicle wholesaler may not engage in business

in this state unless he or she maintains a permanent business location, with indoor

office space, in this state. The bill provides that a business location does not meet

this requirement if more than one licensed wholesale dealer is located under the

same roof or if the office space 1) is common space or shared with other tenants; 2)

is rented by the hour or day; 3) contains cubicles; or 4) is temporary, virtual, or

rotating.