If you are opening an independent auto dealership in the state of California, then the law requires you to participate in the DMV's Business Partner Automation (BPA) program. Access to the BPA program allows your independent dealership to process titles and registrations remotely from your car lot with a computer link directly with a DMV service provider.

Access to the BPA program allows you to process registrations and titles quickly and easily for your customers while avoiding the long lines at the local DMV office. It also allows your customers to pay their fees with a credit card and prevents them from repeatedly calling you with title and registration issues for cars recently purchased.

Used Car Dealers Are Required to Have Second-Level Membership in the BPA Program

In California, used car dealers are required to become second-level members in the BPA program and process their transactions through one of the state's handful of first-level providers.

Outlined below are the steps involved in the process:

1. A buyer purchases a used vehicle from your car lot.
2. The buyer pays the registration and license fees to you.
3. You electronically request a transfer of the title and registration to the new owner from a first-level member of the BPA program.
4. You provide the buyer with temporary registration and title documentation.
5. You electronically pay the fees collected to the first level member.

As you can see, nowhere in the process will you have to deal directly with the DMV.

The Requirements to Become a Second-Level Service Provider in the California DMV's BPA Program

To become a second-level provider in the BPA program, your business is required to have a valid business license in your local county. You will need to send a copy to the DMV with your application and fee for the program.

Your car lot's office needs to have a secure computer located in an area out of view of customers for privacy reasons. And, anyone with access to the computer will need to have fingerprints on file with the local law enforcement office.

Final Note About Used Vehicle Titling

In conclusion, in addition to membership in the California DMV's BPA program, used automobile dealers operating in the state also need to obtain membership in the National Motor Vehicle Titling Information System (NMVTIS). This organization generates reports on the title history of motor vehicles with alternative types of titles, such as auto dismantler or salvage titles. This is very important for determining out-of-state car titles in limbo or other problematic states.

For more information on car title transfer in your area, contact your local auto title service today.