Car Dealer License Test EXAM AND PRACTICE EXAM
NEWEST ACTUAL EXAM COMPLETE QUESTIONS AND
CORRECT DETAILED ANSWERS (VERIFIED ANSWERS)
|ALREADY GRADED A+
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 - CORRECT ANSWER 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 - CORRECT ANSWER 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 - CORRECT ANSWER d. Both A & B
The maximum a dealer may charge a customer for a smog test is:
a. $8
b. $12
c. $50
d. $45 - CORRECT ANSWER 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 - CORRECT ANSWER 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 - 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)
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
If a vehicle has been sold, any advertising on that vehicle must be withdrawn within:
a. 12 hours
b. 48 hours
c. 36 hours
d. One Week - CORRECT ANSWER b. 48 hours
If a dealer buys a vehicle with an odometer that is not working, the dealer must
a. Tell the buyer that the odometer is broken
b. Repair the odometer before selling the vehicle
NEWEST ACTUAL EXAM COMPLETE QUESTIONS AND
CORRECT DETAILED ANSWERS (VERIFIED ANSWERS)
|ALREADY GRADED A+
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 - CORRECT ANSWER 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 - CORRECT ANSWER 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 - CORRECT ANSWER d. Both A & B
The maximum a dealer may charge a customer for a smog test is:
a. $8
b. $12
c. $50
d. $45 - CORRECT ANSWER 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 - CORRECT ANSWER 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 - 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)
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
If a vehicle has been sold, any advertising on that vehicle must be withdrawn within:
a. 12 hours
b. 48 hours
c. 36 hours
d. One Week - CORRECT ANSWER b. 48 hours
If a dealer buys a vehicle with an odometer that is not working, the dealer must
a. Tell the buyer that the odometer is broken
b. Repair the odometer before selling the vehicle
