CAR DEALER LICENSE TEST 2026|2027 QUESTIONS WITH VERIFIED
ANSWERS |LATEST UPDATE
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 0
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 that mileage
d. Both A & B - Correct answer -d. Both A & B
Is it ever legal for a dealer to reset, or "roll back" an odometer to show less than the actual mileage?
a. Yes if the dealer tells the buyer how much he rolled back the odometer
b. Yes if the dealer puts the original mileage in writing on the contract
c. Yes if the dealer asks the buyer if it is okay with them to do the roll back
d. No - Correct answer -d. No
DMV requires special plates (dealer plates) be placed where on the vehicle?
a. On the dashboard
b. In the rear window
c. In the rear, over the existing license plate
d. On the trunk, or hanging off the bumper - Correct answer -c. In the rear, over the existing license plate
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, Auto brokers must do which of the following
a. Limit deposits to 2.5% of the purchase price, and all deposits in a separate trust account
b. Use any deposits received to pay the broker - Correct answer -a. Limit deposits to 2.5% of the
purchase price, and all deposits in a separate trust account
Which of the following are not taxable in a vehicle sales transaction?
a. Finance Charges
b. Insurance charges
c. Smog certificate fee (paid to the state)
d. All of the above - Correct answer -d. All of the above
Buy here pay here (self-financing) dealers must:
a. Charge interest rates that are 20% less than 20% above prime rate
b. Offer 30 day or 1,000 mile warranties, and put fair market value notices on their vehicles
c. send 50% of all interest charged to DMV
d. Finance all vehicles sold for more than $50,000 - Correct answer -b. Offer 30 day or 1,000 mile
warranties, and put fair market value notices on their vehicles
Which of the following is a required safety equipment item
a. Padded dashboards
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ANSWERS |LATEST UPDATE
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 0
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 that mileage
d. Both A & B - Correct answer -d. Both A & B
Is it ever legal for a dealer to reset, or "roll back" an odometer to show less than the actual mileage?
a. Yes if the dealer tells the buyer how much he rolled back the odometer
b. Yes if the dealer puts the original mileage in writing on the contract
c. Yes if the dealer asks the buyer if it is okay with them to do the roll back
d. No - Correct answer -d. No
DMV requires special plates (dealer plates) be placed where on the vehicle?
a. On the dashboard
b. In the rear window
c. In the rear, over the existing license plate
d. On the trunk, or hanging off the bumper - Correct answer -c. In the rear, over the existing license plate
1|Page
, Auto brokers must do which of the following
a. Limit deposits to 2.5% of the purchase price, and all deposits in a separate trust account
b. Use any deposits received to pay the broker - Correct answer -a. Limit deposits to 2.5% of the
purchase price, and all deposits in a separate trust account
Which of the following are not taxable in a vehicle sales transaction?
a. Finance Charges
b. Insurance charges
c. Smog certificate fee (paid to the state)
d. All of the above - Correct answer -d. All of the above
Buy here pay here (self-financing) dealers must:
a. Charge interest rates that are 20% less than 20% above prime rate
b. Offer 30 day or 1,000 mile warranties, and put fair market value notices on their vehicles
c. send 50% of all interest charged to DMV
d. Finance all vehicles sold for more than $50,000 - Correct answer -b. Offer 30 day or 1,000 mile
warranties, and put fair market value notices on their vehicles
Which of the following is a required safety equipment item
a. Padded dashboards
2|Page
