CALIFORNIA DEALER TEST NEWEST ACTUAL EXAM COMPLETE
QUESTIONS AND CORRECT VERIFIED DETAILED ANSWERS
(GRADED A+)
Where the dealer repairs an odometer, and the odometer is incapable of
registering the same mileage as before service, the dealer must:
a. Set the odometer to zero
b. Attach a written notice to the left doorframe specifying the previous
mileage and date of repair
c. Estimate mileage and set the odometer to the mileage
d. Both A and B - VERIFIED ANSWER - d. Both A and B
Which of the following is a correct statement concerning the use of
special plates?
a. Special plates do not require a copy of their registration certificates to
be kept with them.
b. Special plates may be used for towing or transporting other vehicles in
limited circumstances.
,c. Special plates may be used on a vehicle by a buyer after the buyer has
purchased and taken deliver of a vehicle. - VERIFIED ANSWER - b.
The 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 - VERIFIED ANSWER - c. A red warning decal be placed on
vehicles with branded titles
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
b. Test drive it before agreeing to sell it
c. Provide a warranty
d. None of the above - VERIFIED ANSWER - a. Provide the seller an
accounting and payment within 29 days of the sale.
,Which of the following are permitted methods for computing interest
rate?
a. The Pre-Computed Basis Method
b. The Simple Interest Basis Method
c. The Friedman Method
d. Both A and B - VERIFIED ANSWER - d. Both A and B
What is the maximum a dealer may charge a customer for a smog test? -
VERIFIED ANSWER - $50.00
What is the basic DMV transfer fee to transfer the title into the buyer's
name? - VERIFIED ANSWER - $15.00
If the buyer defaults on a Conditional Sales Contract, the dealer may,
subject to proper notification to the buyer:
a. Accelerate the amount do
b. Repossess vehicle
, c. Sell the vehicle
d. All of the above - VERIFIED ANSWER - d. All of the above
Which of the following are taxable in a vehicle sales transaction?
a. Document preparation fee
b. $50 smog fee paid to seller/dealer
c. Both A and B
d. Insurance fees - VERIFIED ANSWER - c. Both A and B
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 - VERIFIED ANSWER - d. All of the above
Buy Here Pay Here (self-financing) Dealers must:
QUESTIONS AND CORRECT VERIFIED DETAILED ANSWERS
(GRADED A+)
Where the dealer repairs an odometer, and the odometer is incapable of
registering the same mileage as before service, the dealer must:
a. Set the odometer to zero
b. Attach a written notice to the left doorframe specifying the previous
mileage and date of repair
c. Estimate mileage and set the odometer to the mileage
d. Both A and B - VERIFIED ANSWER - d. Both A and B
Which of the following is a correct statement concerning the use of
special plates?
a. Special plates do not require a copy of their registration certificates to
be kept with them.
b. Special plates may be used for towing or transporting other vehicles in
limited circumstances.
,c. Special plates may be used on a vehicle by a buyer after the buyer has
purchased and taken deliver of a vehicle. - VERIFIED ANSWER - b.
The 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 - VERIFIED ANSWER - c. A red warning decal be placed on
vehicles with branded titles
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
b. Test drive it before agreeing to sell it
c. Provide a warranty
d. None of the above - VERIFIED ANSWER - a. Provide the seller an
accounting and payment within 29 days of the sale.
,Which of the following are permitted methods for computing interest
rate?
a. The Pre-Computed Basis Method
b. The Simple Interest Basis Method
c. The Friedman Method
d. Both A and B - VERIFIED ANSWER - d. Both A and B
What is the maximum a dealer may charge a customer for a smog test? -
VERIFIED ANSWER - $50.00
What is the basic DMV transfer fee to transfer the title into the buyer's
name? - VERIFIED ANSWER - $15.00
If the buyer defaults on a Conditional Sales Contract, the dealer may,
subject to proper notification to the buyer:
a. Accelerate the amount do
b. Repossess vehicle
, c. Sell the vehicle
d. All of the above - VERIFIED ANSWER - d. All of the above
Which of the following are taxable in a vehicle sales transaction?
a. Document preparation fee
b. $50 smog fee paid to seller/dealer
c. Both A and B
d. Insurance fees - VERIFIED ANSWER - c. Both A and B
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 - VERIFIED ANSWER - d. All of the above
Buy Here Pay Here (self-financing) Dealers must:
