DMV Dealer Pre-License Training Exam

DMV Dealer Pre-License Training Exam ANY of the following actions could result in a Dealer license suspension: - Answer- - 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

The Guide must be in plain view (with both sides visible) and may be either: - Answer- - Hung from the rear-view mirror or outside side-view mirror

• Placed under a windshield wiper.
• Attached to a side window

A Guide in a glove compartment, trunk or under the seat is not conspicuous because it is not in plain sight.What can the DMV, as well as State and Federal regulatory agencies do? - Answer- The DMV, as well as State and Federal regulatory agencies, can limit, suspend, or revoke a Dealer's license and or impose penalties should they fail to abide by the laws and regulations governing Dealers.All Dealers must have a Surety Bond valued on their license type and provide proof: - Answer- - OL 25 New or Used Auto-Commercial Dealer ($50,000)

• OL 25B Motorcycle Dealer, Motorcycle Lessor-Retailer, All-Terrain Vehicle Dealer, or

Wholesale-Only Dealer (Less Than 25 Vehicles Per Year) $10,000 Never advertise or sell as used car as "Certified" when the: - Answer- - Odometer does not indicate the actual mileage of the vehicle.

• Vehicle was reacquired by the manufacturer or dealer under state or federal warranty

law (i.e. "lemon law").

• Vehicle was damaged by a collision, fire, or flood unless repaired to safe operational

condition prior to sale

• Title was branded as a lemon law buyback, manufacturer repurchase, salvage, junk,

non-repairable, or similar designation

• Vehicle has frame damage or was sold "as is"

If the odometer cannot register the same mileage as before the repair: - Answer- it must be adjusted to read "0" with a notice attached to the vehicle's left door frame (specifying 1 / 2

the prior mileage and the date on which it was serviced, repaired, or replaced) by the person performing the service or repair Dealers must securely store their Reports of Sale at their principal place of business for

• Answer- and are required to "implement federal safeguard standards for storage" and

maintain the records vehicle transaction for 90 days (was 18 months) at the principal place of business or branch location.After 3 months (90 days), use an offsite storage facility within the state or third-party vendor to maintain records for a total storage requirement of 36 months / 3 years.

• Digital storage is acceptable after the initial 90 days
• DMV requested records must be provided within 3 business days

California's "Car Buyer Bill of Rights" (AB 68) limits a Dealer's compensation from an institution financing the purchase of a vehicle is limited to no more than: - Answer- - 2.5% for terms up to 60 months

• 2.0% for terms of 60 months or longer

This limitation does not apply when the assignment requires the Dealer to bear the entire risk of financial performance for the consumer or when the assignment is more than six months after the date of the Conditional Sale Contract.When a Dealer sells a Lemon Law buyback vehicle, they must notify the buyer on letter- size paper of the following: - Answer- - The year, make, model, and vehicle identification number

• That the vehicle title is marked "Lemon Law Buyback"
• The nature of each nonconformity reported by the vehicle's original buyer or lessee
• Any repairs made to the vehicle in an attempt to correct each nonconformity

Dealers should complete and submit the following to renew their license: - Answer- - Renewal Application (DMV form OL 45)

• Proof of Continuing Education (every two years)
• Proof of Surety Bond
• Payment of Renewal Fees

Who may operate a vehicle with special plates for any purpose? - Answer- (a) A sole owner, a general partner, a manager of a limited liability company, or a corporate officer or director of a Dealer provided that individual is actively engaged in the management and control of the Dealer's business operations (b) A general manager, or business manager, or sales manager who is actively engaged in the management and control of the business operations of the Dealer when no other individual meets the criteria in (a) above (c) A driver -if- an individual identified in section (b) is also in the vehicle.(d) An unaccompanied adult who regularly resides in the household of individuals identified in section (b) to pick up or drop off that individual.

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