CALIFORNIA DEALER LICENSE
PRACTICE TEST 2025/2026
ACCURATE QUESTIONS WITH
CORRECT DETAILED ANSWERS ||
100% GUARANTEED PASS
<RECENT VERSION>
1. What is a broker? - ANSWER ✓
A Broker Endorsement is an addition to your Retail Dealer License
that allows you to make money selling new or used vehicles and
leases, owned by other Dealers.
2. Can you sell a car with the intention to make profit without a
license? - ANSWER ✓
No. People are mistaken when they believe they can "flip" a few
vehicles as a side business. Purchasing vehicles to fix up and sell,
without transferring into their name is breaking the law. Those
sellers are not paying the required sales tax, DMV fees, and, likely
avoiding income tax.
3. Office Requirements? - ANSWER ✓
Devoted exclusively to the use of your business
2. Commercial offices are not required to have "entry directly from
the outside" or be on the "ground floor"
, 3. Telephone (mobile is acceptable)
4. Desk
5. Lockable filing cabinet (may be empty when you apply)
4. Signage requirements? - ANSWER ✓
Not less than 2 square feet and readable from at least 50 feet.
Wholesaler dealers don't require this.
5. After a hearing, the department May revoke and/or suspend a
dealers license if they have
a. Wrote the department a check with insufficient funds at the
bank
b. knowingly permits someone to illegally use their special
plates
c. fall asleep or wrong information on the registration of a
vehicle
d. All of the above - ANSWER ✓ d. All of the above
6. When a dealer runs out of ROS and needs emergency supplies,
where does he/ she get them from?
a. Another dealer
b. DMV Sacramento
c. Occupational Licensing Inspector - ANSWER ✓ c.
Occupational Licensing Inspector
7. Which are true regarding the dealer Special Plates?
a. Dealer can use the SPecial Plates to go on vacation
b. Prospective customer can use Special Plates for "Test Drive"
for up to 7 days
c. All of the above - ANSWER ✓ c. All of the above
8. When test driving the vehicle, what is the proper placement of the
Special Plates?
a. In the rear window
, b. In lower right corner of front window
c. Mounted on the back rear of vehicle - ANSWER ✓ c.
Mounted on the back rear of vehicle
9. The employee can use the Special Plates to visit a sick friend.
a. True
b. False - ANSWER ✓ b. False
10. How much is the bond that the dealer must have prior to the
issuance of its Dealer License?
a. $10,000
b. $50,000
c. $15,000
d. $20,000 - ANSWER ✓ b. $50,000
11. If the Board of Equalization revokes or suspends your
Seller's Permit, what is the result?
a. Cancellation of Dealer's License
b. Automatic Revocation of Seller's Permit
c. Revocation or suspension of the Dealer's License - ANSWER
✓ a. Cancellation of Dealer's License
12. Every Dealer must notify DMV of the effective day of
change of ownership:
a. 10 days prior to effective date
b. Within 5 days prior to effective date
c. Within 15 days
d. Within 20 days - ANSWER ✓ a. 10 days prior to effective
date
13. Every Dealer must notify DMV of the effective day of the
change of location:
a. Immediately
b. Within 5 days
PRACTICE TEST 2025/2026
ACCURATE QUESTIONS WITH
CORRECT DETAILED ANSWERS ||
100% GUARANTEED PASS
<RECENT VERSION>
1. What is a broker? - ANSWER ✓
A Broker Endorsement is an addition to your Retail Dealer License
that allows you to make money selling new or used vehicles and
leases, owned by other Dealers.
2. Can you sell a car with the intention to make profit without a
license? - ANSWER ✓
No. People are mistaken when they believe they can "flip" a few
vehicles as a side business. Purchasing vehicles to fix up and sell,
without transferring into their name is breaking the law. Those
sellers are not paying the required sales tax, DMV fees, and, likely
avoiding income tax.
3. Office Requirements? - ANSWER ✓
Devoted exclusively to the use of your business
2. Commercial offices are not required to have "entry directly from
the outside" or be on the "ground floor"
, 3. Telephone (mobile is acceptable)
4. Desk
5. Lockable filing cabinet (may be empty when you apply)
4. Signage requirements? - ANSWER ✓
Not less than 2 square feet and readable from at least 50 feet.
Wholesaler dealers don't require this.
5. After a hearing, the department May revoke and/or suspend a
dealers license if they have
a. Wrote the department a check with insufficient funds at the
bank
b. knowingly permits someone to illegally use their special
plates
c. fall asleep or wrong information on the registration of a
vehicle
d. All of the above - ANSWER ✓ d. All of the above
6. When a dealer runs out of ROS and needs emergency supplies,
where does he/ she get them from?
a. Another dealer
b. DMV Sacramento
c. Occupational Licensing Inspector - ANSWER ✓ c.
Occupational Licensing Inspector
7. Which are true regarding the dealer Special Plates?
a. Dealer can use the SPecial Plates to go on vacation
b. Prospective customer can use Special Plates for "Test Drive"
for up to 7 days
c. All of the above - ANSWER ✓ c. All of the above
8. When test driving the vehicle, what is the proper placement of the
Special Plates?
a. In the rear window
, b. In lower right corner of front window
c. Mounted on the back rear of vehicle - ANSWER ✓ c.
Mounted on the back rear of vehicle
9. The employee can use the Special Plates to visit a sick friend.
a. True
b. False - ANSWER ✓ b. False
10. How much is the bond that the dealer must have prior to the
issuance of its Dealer License?
a. $10,000
b. $50,000
c. $15,000
d. $20,000 - ANSWER ✓ b. $50,000
11. If the Board of Equalization revokes or suspends your
Seller's Permit, what is the result?
a. Cancellation of Dealer's License
b. Automatic Revocation of Seller's Permit
c. Revocation or suspension of the Dealer's License - ANSWER
✓ a. Cancellation of Dealer's License
12. Every Dealer must notify DMV of the effective day of
change of ownership:
a. 10 days prior to effective date
b. Within 5 days prior to effective date
c. Within 15 days
d. Within 20 days - ANSWER ✓ a. 10 days prior to effective
date
13. Every Dealer must notify DMV of the effective day of the
change of location:
a. Immediately
b. Within 5 days
