DMV Dealer License Test

DMV Dealer License Test updated Questions and Answers 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✔✔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✔✔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✔✔d. Both A and B

What is the maximum a dealer may charge a customer for a smog test?✔✔$50.00 1 / 2

What is the basic DMV transfer fee to transfer the title into the buyer's name?✔✔$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✔✔d. All of the above

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

• Document preparation fee
• $50 smog fee paid to seller/dealer
• Both A and B
• Insurance fees✔✔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✔✔d. All of the above

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

• Charge interest rates that are less than 20% above prime rate
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