DMV Dealer License Test

DMV Dealer License Test The National Motor Vehicle Title Information System requires which of the following?

• All warranty agreements be sent to DMV
• All vehicles have a Car Fax
• A red warning decal be placed on vehicles with branded titles
• Both A and B - 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:

• Provide the seller an accounting and payment within 20 days of the sale
• Test drive it before agreeing to sell it
• Provide a warranty
• None of the above - 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?

• The Pre-Computed Basis Method
• The Simple Interest Basis Method
• The Friedman Method
• Both A and B - Answer- d. Both A and B

What is the maximum a dealer may charge a customer for a smog test? - Answer-

$50.00

What is the basic DMV transfer fee to transfer the title into the buyer's name? - Answer-

$15.00

If the buyer defaults on a Conditional Sales Contract, the dealer may, subject to proper

notification to the buyer:

• Accelerate the amount do
• Repossess vehicle
• Sell the vehicle
• All of the above - Answer- d. All of the above

Which of the following are taxable in a vehicle sales transaction?

• Document preparation fee 1 / 2

• $50 smog fee paid to seller/dealer
• Both A and B
• Insurance fees - Answer- c. Both A and B

Which of the following are not taxable in a vehicle sales transaction?

• Finance charges
• Insurance charges
• Smog certificate fee (paid to state)
• All of the above - Answer- d. All of the above

Buy Here Pay Here (self-financing) Dealers must:

• Charge interest rates that are less than 20% above prime rate
• Offer 30 day, or 1,000 mile warranties, and put FMV notices on their vehicles
• Send 50% of all interest charged to DMV
• Finance all vehicles sold for more than $50,000 - Answer- b. Offer a 30 day, or 1,000

mile warranties, and put FMV notices on their vehicles Which of the following is required Safety Equipment item?

• Padded dashboards
• Smog Equipment
• Door locks
• Reclining seatbacks - Answer- b. Smog Equipment

Advertisements must identify the dealer by which of the following?

• Phone number
• The dealership name
• "dlr"
• "Dealer" - Answer- b. The dealership name

If a a vehicle has been sold, any advertising on that vehicle must be withdrawn within how long? - Answer- 48 hours If a dealer buys a vehicle with an odometer that is not working the dealer must:

• Tell the buyer that the odometer is broken
• Repair the odometer before selling the vehicle

c Sign a declaration the odometer is not operating to be filed with the DMV

• Do nothing - Answer- b. Repair the odometer before selling the vehicle

Where the dealer repairs an odometer, and the odometer is incapable of registering the same mileage as before service, the dealer must:

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