DMV Dealer License Test UPDATED ACTUAL QUESTIONS AND CORRECT
ANSWERS
The National Motor Vehicle Title Information System c. A red warning decal be placed on vehicles with branded titles
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
When a dealer sells a vehicle that was consigned to them a. Provide the seller an accounting and payment within 29 days of the sale.
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
Which of the following are permitted methods for d. Both A and B
computing interest rate?
a. The Pre-Computed Basis Method
b. The Simple Interest Basis Method
c. The Friedman Method
d. Both A and B
What is the maximum a dealer may charge a customer for $50.00
a smog test?
, What is the basic DMV transfer fee to transfer the title $15.00
into the buyer's name?
If the buyer defaults on a Conditional Sales Contract, the d. All of the above
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
Which of the following are taxable in a vehicle sales c. Both A and B
transaction?
a. Document preparation fee
b. $50 smog fee paid to seller/dealer
c. Both A and B
d. Insurance fees
Which of the following are not taxable in a vehicle sales d. All of the above
transaction?
a. Finance charges
b. Insurance charges
c. Smog certificate fee (paid to state)
d. All of the above
Buy Here Pay Here (self-financing) Dealers must: b. Offer a 30 day, or 1,000 mile warranties, and put FMV notices on their vehicles
a. Charge interest rates that are less than 20% above
prime rate
b. Offer 30 day, or 1,000 mile warranties, and put FMV
notices on their vehicles
c. Send 50% of all interest charged to DMV
d. Finance all vehicles sold for more than $50,000
Which of the following is required Safety Equipment b. Smog Equipment
item?
a. Padded dashboards
b. Smog Equipment
c. Door locks
d. Reclining seatbacks
Advertisements must identify the dealer by which of the b. The dealership name
following?
a. Phone number
b. The dealership name
c. "dlr"
d. "Dealer"
ANSWERS
The National Motor Vehicle Title Information System c. A red warning decal be placed on vehicles with branded titles
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
When a dealer sells a vehicle that was consigned to them a. Provide the seller an accounting and payment within 29 days of the sale.
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
Which of the following are permitted methods for d. Both A and B
computing interest rate?
a. The Pre-Computed Basis Method
b. The Simple Interest Basis Method
c. The Friedman Method
d. Both A and B
What is the maximum a dealer may charge a customer for $50.00
a smog test?
, What is the basic DMV transfer fee to transfer the title $15.00
into the buyer's name?
If the buyer defaults on a Conditional Sales Contract, the d. All of the above
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
Which of the following are taxable in a vehicle sales c. Both A and B
transaction?
a. Document preparation fee
b. $50 smog fee paid to seller/dealer
c. Both A and B
d. Insurance fees
Which of the following are not taxable in a vehicle sales d. All of the above
transaction?
a. Finance charges
b. Insurance charges
c. Smog certificate fee (paid to state)
d. All of the above
Buy Here Pay Here (self-financing) Dealers must: b. Offer a 30 day, or 1,000 mile warranties, and put FMV notices on their vehicles
a. Charge interest rates that are less than 20% above
prime rate
b. Offer 30 day, or 1,000 mile warranties, and put FMV
notices on their vehicles
c. Send 50% of all interest charged to DMV
d. Finance all vehicles sold for more than $50,000
Which of the following is required Safety Equipment b. Smog Equipment
item?
a. Padded dashboards
b. Smog Equipment
c. Door locks
d. Reclining seatbacks
Advertisements must identify the dealer by which of the b. The dealership name
following?
a. Phone number
b. The dealership name
c. "dlr"
d. "Dealer"
