CAR DEALER LICENSE CERTIFICATION TEST
2026 QUESTIONS AND ANSWERS VERIFIED
100% CORRECT
● 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/fulfill 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 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
● Auto Brokers must do which of the following: Answer:Write all
brokered sales into the dealer's auto broker log
● 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:The Pre-Computed Basis Method
&
The Simple Interest Basis Method
● A dealer can charge which of the following document preparation
fees? Answer:$85.00 if the dealer uses a Business Partner Automation
registration service
&
2026 QUESTIONS AND ANSWERS VERIFIED
100% CORRECT
● 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/fulfill 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 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
● Auto Brokers must do which of the following: Answer:Write all
brokered sales into the dealer's auto broker log
● 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:The Pre-Computed Basis Method
&
The Simple Interest Basis Method
● A dealer can charge which of the following document preparation
fees? Answer:$85.00 if the dealer uses a Business Partner Automation
registration service
&
