CAR DEALER LICENSE TEST EXAM
2025/2026 QUESTIONS AND ANSWERS
100% PASS
The national Motor Vehicle Title information System requires which of the following?
a. All warranty agreements be sent to DMV
b. All vehicles have a Car Fax
c. A red warning decal be placed on vehicles with branded titles
d. Both A & B - ANS 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
a. Provide the seller an accounting and payment within 20 days of the sale
b. Test drive it before agreeing to sell it
c. Provide a warranty
d. None of the above - ANS a. provide the seller an accounting and payment within 20 days
of the sale
Which of he following are permitted methods for computing interest rates
a. The pre-computed Basis method
b. The simple Interest basis method
c. The Friedman Method
d. Both A & B - ANS d. Both A & B
pg. 1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
, The maximum a dealer may charge a customer for a smog test is:
a. $8
b. $12
c. $50
d. $45 - ANS c. $50
The basic DMV transfer fee to transfer the title into the buyer's name is
a. $15
b. $12
c. $80
d. $25 - ANS a. $15
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 - ANS 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 - ANS 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)
pg. 2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
2025/2026 QUESTIONS AND ANSWERS
100% PASS
The national Motor Vehicle Title information System requires which of the following?
a. All warranty agreements be sent to DMV
b. All vehicles have a Car Fax
c. A red warning decal be placed on vehicles with branded titles
d. Both A & B - ANS 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
a. Provide the seller an accounting and payment within 20 days of the sale
b. Test drive it before agreeing to sell it
c. Provide a warranty
d. None of the above - ANS a. provide the seller an accounting and payment within 20 days
of the sale
Which of he following are permitted methods for computing interest rates
a. The pre-computed Basis method
b. The simple Interest basis method
c. The Friedman Method
d. Both A & B - ANS d. Both A & B
pg. 1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
, The maximum a dealer may charge a customer for a smog test is:
a. $8
b. $12
c. $50
d. $45 - ANS c. $50
The basic DMV transfer fee to transfer the title into the buyer's name is
a. $15
b. $12
c. $80
d. $25 - ANS a. $15
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 - ANS 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 - ANS 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)
pg. 2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
