CAR DEALER LICENSE TEST QUESTIONS WITH VERIFIED SOLUTIONS

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CAR DEALER LICENSE TEST QUESTIONS WITH
VERIFIED SOLUTIONS



If the buyer defaults on a conditional sales contract, the dealer may, subject to
proper notification to the buyer
a. Accelerate amount due
b. Repossess vehicle
c. Sell vehicle
d. All of the above -correct-answer-d. All of the above




Which of the following are taxable in a vehicle sales transaction?
a. document preparation fee
b. $50 Smog fee paid to the seller/dealer
c. Both A & B
d. Insurance fees -correct-answer-c. Both A & B




Which of the following are not taxable in a vehicle sales transaction?
a. Finance Charges
b. Insurance charges
c. Smog certificate fee (paid to the state)

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d. All of the above -correct-answer-d. All of the above




Buy here pay here (self-financing) dealers must:
a. Charge interest rates that are 20% less than 20% above prime rate
b. Offer 30 day or 1,000 mile warranties, and put fair market value notices on their
vehicles
c. send 50% of all interest charged to DMV
d. Finance all vehicles sold for more than $50,000 -correct-answer-b. Offer 30 day
or 1,000 mile warranties, and put fair market value notices on their vehicles




Which of the following is a required safety equipment item
a. Padded dashboards
b. Smog Equipment
c. Door Locks
d. Reclining Seatbacks -correct-answer-b. Smog Equipment




Advertisements must identify the dealer by which of the following
a. Phone number
b. The dealership name
c. "dlr"
d. "Dealer" -correct-answer-b. The dealership name