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Car Dealer License Test Questions and Answers
Already Passed Latest Updated 202 5/2026 |
Graded A+
When the odometer past 99,999 miles on a 5 digit odometer, a dealer must? Advise the buyer and mark the 262 form as "exceeds the mechanical limits" Which of the following is a correct statement of the law with regard to smog checks: A dealer must have a smog check for every vehicle offered for sale to the public Your occupational license will be automatically canceled without a hearing if: Your sellers permit is revoked You have a bond reduction You take your make sign down and relinquish your office When is a Federal Buyers Guide Required to be display? Whenever the vehicle is being display for sale in the dealers display area How much is the vehicle transfer fee, on a California registered vehicle
$15 dlls When is a retail dealer required to maintain a vehicle display area? At all times while licensed How many hours does a dealer have to notify the advertiser, in writing that a vehicle has been sold or withdrawn? 48 hours When is it proper to reset an odometer? Never If you are an autobroker, then you must also be licensed as a? Dealer When you are a dealer selling a car to a retail customer, when is it proper for the dealer to allow the customers to obtain a smog certificate of their own? Never If a dealer is suspected of viloating th laws that regulate dealers, wich of the following actions may be taken against the dealer? Administrative hearing Possible prosecution by the District Attorney Civil Action for money damages
If a dealer plans on changing the location of his established place of business, when is it required to notify the DMV? immediately When is a dealer, who sells a vehicle that has a title branded SALVAGE, required to disclose the status of the title to the retail customer? Before the sale of the vehicle Which is the main body of law used to regulate dealers? The vehicle code What will happen if a dealer unkowingly buys a stolen car? The dealer will have to return the car to the rightful owner How much is the most that can be charged for a document preparation fee? $ Before you can apply for your dealer license, you need to get a resale permit (sellers permit) from where? The state board of equalization What is required in an auto dealers advertisement for a vehicle for sale? Make and model
VIN
Dealership name When is it acceptable to keep excess registration fees paid by the customer? Never Which of the following persons must have a salespersons license at an auto delareship? Salesperson Sales Manager Finance Manager As of january 1, 2003 a Retail Dealer must maintain a bond in the amount of? $50,000 dlls What is the purpose of Division 12 of the vehicle code? Regulates the manner in wich vehicles are equipped for safe operation How many cars can a private individual legally sell per year with an intent to profit? None Division 12 safety requirement may be waived: Never
application copy of the report of sale and supporting documents within 30 days? $5 dlls What will happen if you fail to renew your dealer license on time and enter the 30 day grace? You will keep the dealer license as long as you pay the renewal fee PLUS a $150 penalty (100% of initial application) plus a prorated fine for each dealer plate. If you fail to submit the title, report of sale application copy and supporting documents to the DMV within 50 days after you sell a car, how much of an administrative service fee will you be charged? $25 dlls How often will you be required to take continuing dealer education? every 2 years How many questions are in the dealers test multiple choice? 40 Passing score? 70% or 28 right questions How much time is the test for? :50 minutes
How do you make an appointment to take the test? Contact the nearest DMV isnpector Get a business license from: THE CITY Get your sellers permit from: STATE BOARD OF EQUALIZATION Get a fictitious name statement from: COUNTY RECORDER For $70 dlls more you can get a brokers ENDORSEMENT Get your property use verification form signed by the CITY PLANNING DEPARTMENT Wholesale dealers need a bond in the amount of: $10,000 dlls if they sell less than 25 cars per year. The dealer license application fee is? $150 dlls
Conditional Sales Contract must be in: WRITING And include signatures of: BUYER AND SELLER Types of Conditional Sales Contract: PRECOMPUTED SIMPLE INTEREST Maximum Motor vehicle financing allowable interest rate? 29.9% APR Early payoff of loan under PRECOMPUTED interest BAD deal for the consumer An Upside down trade in means: BUYER OWES MORE THAN CAR IS WORTH Financing falls trough the dealer has 10 day recission right to cancel the contract TRUTH IN LENDING Contract not executed means the customer can not take delivery unless the contract is signed
TRUTH IN LENDING You must resell a repo vehicle in a commercially reasonable manner TRUTH IN LENDING max documentation prep fee: $45 dlls A break in the contract is also known as a: BREACH After the REPO, mail the customer a notice of intent to: DISPOSE REDEMPTION means: The customer must pay balance in full The customer has: 15 days to reinstate or redeem If you resell the car and make lees than the customer owe you, you can sue the customer for a: DEFICIENCY The Gramm–Leach–Bliley Act is a law that protects the customers PRIVACY SALES AND USE TAX The use tax rate is the same rate as SALES TAX
