CALIFORNIA DEALER TEST
CERTIFICATION EVALUATION SET 2026
ANSWERS GUARANTEED PASS
⫸ Which type of dealer is permitted to have a $10,000.00 bond?
Answer: Wholesale dealer selling less than 25 vehicles per year
⫸ An occupational license is valid for how long? Answer: 2 years
⫸ A dealer's office must have all of the following except Answer: It
must be located in the county where the buyer lives
⫸ Which of the following are required for dealership signs? Answer:
Each retail dealership must have a sign not less than 2 feet square that
can be read from 50 feet awaY
⫸ All dealers must have a display area except: Answer: Wholesale
dealers
⫸ The dealership display area must: Answer: Be for the exclusive use of
the dealer for display purposes only
⫸ When is a branch license required? Answer: When vehicles are
displayed and sold more than 1000 feet from the
main dealership office✅
, ⫸ Auto Brokers must do which of the following: Answer: Write all
brokered sales into the dealer's auto broker log
⫸ Auto brokers must also do which of the following Answer: Limit
deposits to 2.5% of the purchase price, and put all deposits in a separate
trust account
⫸ If a dealer sells a vehicle on consignment, the dealer must do which
of the
following: Answer: Provide the consignor (the selling owner) a written
accounting within 20 days of the sale date showing where the money
went
⫸ Which of the following are permitted methods for computing interest
rates? Answer: a. The Pre-Computed Basis Method
b. The Simple Interest Basis Method
c. Both a and b✅
⫸ A dealer can charge which of the following document preparation
fees? Answer: $85.00 if the dealer uses a Business Partner Automation
registration
service
c. $70.00 if the dealer uses Fairfax Imaging to process their
registration documents
CERTIFICATION EVALUATION SET 2026
ANSWERS GUARANTEED PASS
⫸ Which type of dealer is permitted to have a $10,000.00 bond?
Answer: Wholesale dealer selling less than 25 vehicles per year
⫸ An occupational license is valid for how long? Answer: 2 years
⫸ A dealer's office must have all of the following except Answer: It
must be located in the county where the buyer lives
⫸ Which of the following are required for dealership signs? Answer:
Each retail dealership must have a sign not less than 2 feet square that
can be read from 50 feet awaY
⫸ All dealers must have a display area except: Answer: Wholesale
dealers
⫸ The dealership display area must: Answer: Be for the exclusive use of
the dealer for display purposes only
⫸ When is a branch license required? Answer: When vehicles are
displayed and sold more than 1000 feet from the
main dealership office✅
, ⫸ Auto Brokers must do which of the following: Answer: Write all
brokered sales into the dealer's auto broker log
⫸ Auto brokers must also do which of the following Answer: Limit
deposits to 2.5% of the purchase price, and put all deposits in a separate
trust account
⫸ If a dealer sells a vehicle on consignment, the dealer must do which
of the
following: Answer: Provide the consignor (the selling owner) a written
accounting within 20 days of the sale date showing where the money
went
⫸ Which of the following are permitted methods for computing interest
rates? Answer: a. The Pre-Computed Basis Method
b. The Simple Interest Basis Method
c. Both a and b✅
⫸ A dealer can charge which of the following document preparation
fees? Answer: $85.00 if the dealer uses a Business Partner Automation
registration
service
c. $70.00 if the dealer uses Fairfax Imaging to process their
registration documents
