PRE-LICENSING USED VEHICLE DEALER EXAMINATION QUESTIONS ANSWERED CORRECTLY LATEST UPDATE 2026

PRE-LICENSING USED VEHICLE DEALER EXAMINATION QUESTIONS ANSWERED CORRECTLY LATEST UPDATE 2026 A national motor vehicle title information system requires which of the following: A) All warranty agreements be sent to DMV B) All vehicles have a Car Fax C) A red warning decal be placed on vehicles with branded titles D) both A and B - Answers C) A red warning decal be placed on vehicles with branded titles If the customer is over charged a DMV fees by the dealer, the dealer must: A) return any excess over $2 to the customer B) return any excess over $5 to the customer C) return any excess fees to the customer D) return all excess fees only if the customer requests - Answers C) return all excess fees only if the customer requests A dealer plate may be used by: A) A service manager taking a child to the dentist B) The son of a dealer taking a behind the wheel test at DMV C) The spouse of a dealer, not on the license, taking children to school D) A prospective customer taking a sales test drive - Answers D) A prospective customer taking a sales test drive When a dealer sells a consigned vehicle, the consign or must be paid the agreed upon amount within: A) 10 days B) 20 days C) 30 days D) 40 days - Answers B) 20 days The maximum a dealer may charge a customer for a smog test is: A) $8.00 B) $12.00 C) $50.00 D) $45.00 - Answers C) $50.00 When a dealer sells a vehicle that was consigned to them to sell, they must: A) provide the seller an accounting and payment within 20 days of the sale date B) Test drives it before agreeing to sell it C) provide a warranty D) none of the above - Answers A) provide the seller an accounting and payment within 20 days of the sale date The basic DMV transfer fee to transfer the title into the buyers name is: A) $15.00 B) $12.00 C) $80.00 D) $25.00 - Answers A) $15.00 Which of the following are not taxable in a vehicle sales transaction? A) Finance Charges B) Insurance charges C) Smog certificate fee (paid to state) D) all of the above - Answers D) all of the above Which of the following is a required safety equipment item? A) Padded Dashboards B) Smog equipment C) door locks D) reclining seats - Answers B) smog equipment Dealer records and supplies must be maintained: A) At the owner's home B) At the dealer's place of of business C) In a briefcase D) In the trunk of a vehicle in dealer inventory - Answers B) At the dealer's place of of business If a dealer fails to renew the dealer bond, which of the following will happen: A) The dealer will be given 30 days to obtain another bond B) The dealer license will be canceled on the date of the expiration of the bond C) The dealer supplies will be picked up by the DMV and held until a new bond is obtained D) the dealer will need to obtain a bond rider - Answers B) The dealer license will be canceled on the date of the expiration of the bond Licensing requirements for dealers in california are found in: A) The business and professions code B) The health and safety code C) The penal code D) the vehicle code - Answers D) the vehicle code It is legal to reset the odometer reading on a vehicle: A) if you can make more money B) if you place additional miles on the odometer C) it is never legal to reset the odometer reading D) if you don't know the true mileage - Answers C) it is never legal to rest the odometer reading If a dealer sells a vehicle, and registration fees are not due, the transfer of ownership must be submitted to DMV within: A) 30 days B) 40 days C) 50 days D) 90 days - Answers A) 30 days if an advertised vehicle is sold, the advertisement must be withdrawn, in writing within: A) 24 hours B) 36 hours C) 48 hours D) 72 hours - Answers C) 48 hours A dealer must report to DMV in writing employment or termination of a salesperson within: A) 5 days B) 10 days C) 15 days D) 20 days - Answers B) 10 days which of the following is not required to transfer a vehicle: A) endorsed certificate of ownership B) a report of prior service records for the vehicle C) odometer mileage reading D) smog certificate - Answers B) a report of prior service records for the vehicle which of the following must sign the certificate of ownership: A) the legal owner B) the registered owner C) the transferee D) all of the above - Answers D) all of the above registration fees are due at the time of retail sale where: A) The registration will expire within 30 days of the date of sale B) The registration has already expired C) registration fees are always due at the time of sale D) both a and b - Answers D) both a and b if the registration of a vehicle expires while a vehicle is in the dealers inventory is the dealer responsible for paying late registration penalties: A) yes B) sometimes C) no - Answers C) no A dealer shall submit a registration application and fees to DMV within how many days of the date of sale: A) 10 B) 20 C) 30 D) 40 - Answers C) 30 When is a branch license required? A) When the dealer displays vehicles at a fair or exposition and no sales are solicited at the location B) when vehicles are sold more than 1000 feet from the dealership office C) when the dealer sells cars to be registered only out of state D) both a and b - Answers B) when vehicles are sold more than 1000 feet from the dealership office Special plates me probably be used: A) on a dealers work or service vehicle routinely used to get parts or to service vehicles B) by employees during the course and scope of their employment C) by a prospective customer for 30 days D) Why a family member of the dealer for personal use - Answers B) by employees during the course and scope of their employment A dealer must not: A) lend a special plate or dealership license to another person to engage in the purchase or sale of vehicles B) employee unlicensed salespersons C) pay "bird dog" fees to any unlicensed person to obtain sales D) all of the above - Answers D) all of the above which of the following is required to have a salespersons license: A) sales manager B) secretary C) Finance manager D) both a and c - Answers D) both a and c A vehicle does not require a smog inspection when: A) The vehicle was constructed during the 1990s B) The buyer waives the inspection C) The vehicle is sold at wholesale between dealers D) both a and c - Answers C) The vehicle is sold at wholesale between dealers The maximum a dealer may charge a buyer for smog testing a vehicle is: A) $25 B) $30 C) $45, minus the cost of the certificate