CAR DEALER TEST QUESTIONS WITH VERIFIED
ACCURATE ANSWERS
How many vehicles can a person buy/sell in the state of California when the goal is to
make money off the transaction? - Answers - In the state of California, you cannot buy
and sell vehicles with the intent to make profit without a dealer's license.
What is the correct bond amount for a retail car dealer or a wholesale car dealer who
sells more than 25 vehicles a year? - Answers - You need a 50K bond to have a retail
car dealer license or to have a wholesale license where you sell over 25 cars a year.
If a dealer buys a stolen vehicle without their knowledge, what will happen to that
vehicle? - Answers - When a stolen vehicle is purchased and then recovered, it is
returned to the actual owner. The dealer will lose all invested interest they have in the
vehicle.
What kind of form does a dealer fill out to report a wholesale transaction? - Answers - A
REG 396 is a Wholesale Report of Sale.
A salesperson gets fired from a dealership, the owner has how many days to let the
DMV know? - Answers - When it comes to people and the DMV it's always 10 days.
If a customer consigns a vehicle at a dealership and the dealership sells it, how many
days does the dealership have to pay the customer? - Answers - When it comes to
consignment and the DMV, the answer is always 20 days.
How many days does a dealer have to post fees on a new motor vehicle? - Answers -
When it comes to new vehicle registration and the DMV, the answer is always 20 days.
How many days does a dealer have to post fees on a used motor vehicle? - Answers -
When it comes to money and the DMV, the answer is always 30 days.
You walk into your dealership and realize that you forgot to pay for the renewal of your
bond, can you still renew it and, if so, how many days do you have to resolve it? -
Answers - The DMV does give you a grace period, however you will have penalties and
because it's money and the DMV, you'll have 30 days to resolve it.
In what situation should a conditional sales contract be used? - Answers - Regardless of
how your retail customer pays; a conditional sales contract is required for every retail
transaction.
In what situation should a temporary license plate be issues to a customer and how long
is it good for? - Answers - If a retail vehicle does not have plates, TLP's (Temporary
License Plates) will be issued and anything temporary and DMV is good for 90 days.
ACCURATE ANSWERS
How many vehicles can a person buy/sell in the state of California when the goal is to
make money off the transaction? - Answers - In the state of California, you cannot buy
and sell vehicles with the intent to make profit without a dealer's license.
What is the correct bond amount for a retail car dealer or a wholesale car dealer who
sells more than 25 vehicles a year? - Answers - You need a 50K bond to have a retail
car dealer license or to have a wholesale license where you sell over 25 cars a year.
If a dealer buys a stolen vehicle without their knowledge, what will happen to that
vehicle? - Answers - When a stolen vehicle is purchased and then recovered, it is
returned to the actual owner. The dealer will lose all invested interest they have in the
vehicle.
What kind of form does a dealer fill out to report a wholesale transaction? - Answers - A
REG 396 is a Wholesale Report of Sale.
A salesperson gets fired from a dealership, the owner has how many days to let the
DMV know? - Answers - When it comes to people and the DMV it's always 10 days.
If a customer consigns a vehicle at a dealership and the dealership sells it, how many
days does the dealership have to pay the customer? - Answers - When it comes to
consignment and the DMV, the answer is always 20 days.
How many days does a dealer have to post fees on a new motor vehicle? - Answers -
When it comes to new vehicle registration and the DMV, the answer is always 20 days.
How many days does a dealer have to post fees on a used motor vehicle? - Answers -
When it comes to money and the DMV, the answer is always 30 days.
You walk into your dealership and realize that you forgot to pay for the renewal of your
bond, can you still renew it and, if so, how many days do you have to resolve it? -
Answers - The DMV does give you a grace period, however you will have penalties and
because it's money and the DMV, you'll have 30 days to resolve it.
In what situation should a conditional sales contract be used? - Answers - Regardless of
how your retail customer pays; a conditional sales contract is required for every retail
transaction.
In what situation should a temporary license plate be issues to a customer and how long
is it good for? - Answers - If a retail vehicle does not have plates, TLP's (Temporary
License Plates) will be issued and anything temporary and DMV is good for 90 days.
