Chapter 5.56 — USED CAR DEALERS

A permit required under Section 5.04.040 shall not be granted to any used car dealer unless he or she has a dealer's certificate issued pursuant to the provisions of the State Vehicle Code and unless he or she has otherwise complied with all requirements of State law. A permit issued to a used car dealer is good only as long as he or she has his or her certificate or other permit required by State law and shall be automatically revoked without notice should such certificate or permit be revoked or if at any time such used car dealer does not have such a permit or certificate. (Prior code § 43-1)

• A. Required—Amount—Multiple Claims. A permit shall not be issued to any used car dealer until he or she files with the City Clerk his or her undertaking approved by the City Attorney in an amount not less than $2,500.00 conditioned that the used car dealer shall deliver a clear title to any used motor vehicle, parts, tires or accessories, to any person, entitled thereto within 21 days after final payment has been made, and that in case of any breach thereof any person injured thereby may recover from the principal and sureties upon such undertaking. The undertaking shall provide that it not void upon the first recovery, but may be sued and recovered from time to time by any person aggrieved, until the whole penalty is exhausted.

• B. Sureties. Either a corporation complying with each and every provision of Section1056 of the Code of Civil Procedure, or not less than two good and sufficient sureties, each of which complies with each and every provision of Section 1057 of the Code of Civil Procedure, shall become surety on such undertaking.

• C. To Be Kept in Full Force and Effect. A permit issued to a used car dealer is good only while the undertaking provided for in this chapter is in full force and effect. Such permit shall be automatically revoked without notice if at any time such undertaking is not in full force and effect.

• D. Filing New Undertaking. If a new undertaking acceptable to the City Council is filed before cancellation or expiration of the old one becomes effective, then the permit will continue in full force.

(Prior code §§ 43-2—43-5)

A used car dealer, while he or she holds a valid existing unrevoked used car dealer's permit, may sell, deal in or otherwise trade in secondhand motor vehicle parts, secondhand motor vehicle tires or any secondhand accessories of motor vehicles as the term motor vehicle is defined in the State Vehicle Code, without a secondhand dealer's license. (Prior code § 43-6)

A new car dealer who is the authorized representative or agent of the manufacturer of new motor

Downloaded from https://ecode360.com/PA4983 on 2026-07-07

City of Paramount, CA § 5.56.040

PARAMOUNT CODE

§ 5.56.080

vehicles, who receives no motor vehicles as defined in the State Vehicle Code which has been registered or driven 100 miles or more except as part payment on another motor vehicle, may obtain a used car dealer's permit permitting him or her to carry on the business of used car dealer at more than one location upon the payment of an additional fee of one dollar for each location other than the first location. One undertaking as described in this chapter is sufficient, regardless of the number of locations covered by such used car dealer's permit. (Prior code § 43-7)

• A. Vehicle to Be on Premises When Advertised. A used car dealer shall not advertise in any newspaper, or through any other medium, that he or she has for sale any motor vehicle which motor vehicle is not actually for sale at the premises at the time the advertisement is inserted in the newspaper or other medium.

• B. License Number of Specific Vehicles Required. Whenever any used car dealer in any advertising medium advertises any specified motor vehicle, he or she shall include in such advertising the current license number of such motor vehicle.

• C. Withdrawal Upon Sale. Within 24 hours after any motor vehicle has been sold, the used car dealer shall withdraw any advertisement from any newspaper or other medium in which such motor vehicle was advertised by him or her for sale.

• (Prior code §§ 43-8—43-10)

The records and books of all car dealers shall be open at all times to the Sheriff to determine whether or not the used car dealer has complied with all the provisions of this chapter. (Prior code § 43-11)

Every used car dealer shall have a fixed place of business. At such place of business he or she shall display prominently his or her name, State certificate number and City permit number. (Prior code § 43-12)

• A. Defined. The term "buy-form" shall be the name of the form furnished by the Sheriff to the permittee for the purpose of recording and furnishing by the permittee to the Sheriff of the required information relative to purchases, pledges or consignments.

• B. Required to Be Mailed to Sheriff—Contents Generally. Every permittee under this chapter shall at the close of each business day mail to the Sheriff the buy-forms made out during that day. Such buy-forms shall contain a full, true and complete report of all goods, wares, merchandise or other things received on deposit, pledged or purchased, during that day, except household furniture, used tires, used batteries, which household furniture, used tires or used batteries were taken in part payment for new tires or new batteries, and except merchandise originally sold new by the permittee and subsequently taken as a trade-in on other merchandise sold by the same permittee, and shall also contain other information required by the Sheriff which, considering the type of business of the permittee, may assist

Downloaded from https://ecode360.com/PA4983 on 2026-07-07

City of Paramount, CA § 5.56.080

BUSINESS LICENSES REGULATIONS

§ 5.56.090

in the detection of stolen property.

• C. Identification of Seller or Pledger. Every permittee under this chapter shall enter upon the "buy-form" positive identification furnished by the seller, pledgemaker or consignee, such as driver's license number, work badge number, auto or truck license number, junk collector's business license number, in addition to the individual's true name and address. In lieu of the positive identification mentioned above, the permittee shall require the seller, pledge-maker or consignee to furnish a plain impression print of his or her right index finger, or next finger in the event of amputation, upon the face side of the original sheet of the "buy-form."

• D. Records to Be Retained—Inspection. Every permittee shall preserve for a period of two years, a copy of the "buy-form" provided for that purpose, containing a carbon copy record thereon of the original writing made by the permittee, agent or employee, the original of which has been furnished to the Sheriff. Every such record and property pledged, purchased or received by such permittee shall be produced for inspection to any peace officer.

• (Prior code §§ 43-13—43-16)

Every person who sells, pledges or consigns any property to any permittee in the course of business covered by such permit, except household furniture, used tires or used batteries, taken in part payment for new tires or new batteries, and except merchandise originally sold new by the permittee and subsequently taken as a trade-in on other merchandise sold by the same permittee, shall furnish true, positive identification to the permittee by which such person can be located by the Sheriff.

(Prior code § 43-17)

Downloaded from https://ecode360.com/PA4983 on 2026-07-07

City of Paramount, CA

BUSINESS LICENSES REGULATIONS

§ 5.60.010

§ 5.60.040