California Auto Dealer License Exam 2025–2026 | Real
Questions With Detailed Answers
| Verified & Updated Study Resource
True or False:
ANY of the following actions could result in a Dealer
license suspension:
Misuse of Special (Dealer) Plates
Bait & Switch advertising schemes
Failure to pay Administrative Service Fees when due
Submission of dishonored check to Department
Selling at unlicensed locations
Failure to transfer title
Paying "Bird Dog" fees - ANSWER-True
,True of False:
Retail Dealers (selling more than 6 vehicles per year) must
display Federal Buyer's Guide in plain view (with both
sides visible) and may be either:
Hung from the rear-view mirror or outside side-view mirror
Placed under a windshield wiper
Attached to a side window - ANSWER-True
True or False:
State and Federal regulatory agencies have no authority
over Dealers. Only the DMV can impose penalties should
they fail to abide by the laws and regulations governing
Dealers. - ANSWER-False
,Used Car Dealers must have a Surety Bond valued at: -
ANSWER-$10,000 for Wholesale Dealers / $50,000 for
Retail Dealers
Never advertise or sell a Used Car as "Certified" if:
Select ALL the correct answers - ANSWER-1. The
odometer does not indicate the actual mileage of the
vehicle
2. The title is branded (lemon law, salvage, junk, non-
repairable, etc.)
3. The vehicle has frame damage or sold "as is"
If a vehicle's odometer is repaired and cannot register the
same mileage as before the repair: - ANSWER-Set the
, odometer to read "0" (zero) with a notice attached to the
vehicle's left door frame by the person performing the
service or repair
Dealers must securely store their Reports of Sale at their
principal place of business for:
Select ONLY the correct answer - ANSWER-3 months (90
days) on-site, then 33 months more digitally or off-site
The "Car Buyer Bill of Rights" limits a Dealer's
compensation from an institution financing the purchase of
a vehicle to: - ANSWER-2.5% for terms up to 60 months -
or- 2.0% for terms of 60 months or longer
Questions With Detailed Answers
| Verified & Updated Study Resource
True or False:
ANY of the following actions could result in a Dealer
license suspension:
Misuse of Special (Dealer) Plates
Bait & Switch advertising schemes
Failure to pay Administrative Service Fees when due
Submission of dishonored check to Department
Selling at unlicensed locations
Failure to transfer title
Paying "Bird Dog" fees - ANSWER-True
,True of False:
Retail Dealers (selling more than 6 vehicles per year) must
display Federal Buyer's Guide in plain view (with both
sides visible) and may be either:
Hung from the rear-view mirror or outside side-view mirror
Placed under a windshield wiper
Attached to a side window - ANSWER-True
True or False:
State and Federal regulatory agencies have no authority
over Dealers. Only the DMV can impose penalties should
they fail to abide by the laws and regulations governing
Dealers. - ANSWER-False
,Used Car Dealers must have a Surety Bond valued at: -
ANSWER-$10,000 for Wholesale Dealers / $50,000 for
Retail Dealers
Never advertise or sell a Used Car as "Certified" if:
Select ALL the correct answers - ANSWER-1. The
odometer does not indicate the actual mileage of the
vehicle
2. The title is branded (lemon law, salvage, junk, non-
repairable, etc.)
3. The vehicle has frame damage or sold "as is"
If a vehicle's odometer is repaired and cannot register the
same mileage as before the repair: - ANSWER-Set the
, odometer to read "0" (zero) with a notice attached to the
vehicle's left door frame by the person performing the
service or repair
Dealers must securely store their Reports of Sale at their
principal place of business for:
Select ONLY the correct answer - ANSWER-3 months (90
days) on-site, then 33 months more digitally or off-site
The "Car Buyer Bill of Rights" limits a Dealer's
compensation from an institution financing the purchase of
a vehicle to: - ANSWER-2.5% for terms up to 60 months -
or- 2.0% for terms of 60 months or longer
