California Dealer License Exam Prep2025–2026 –Complete
Set of Official Test Questions & Correct Ans
A conditional Sales Contract contains which of the following?
a. Must be signed by both buyer and seller
b. Terms of financing must be disclosed
C. All of the above - correct answer -C. All of the above
The maximum fee allowed for documentation preparation is:
a. $10
b. $25
c. $30
d. $65 - correct answer -d. $65
The maximum fee allowed for smog is:
a. $15
b. $20
c. $30
d. $50 - correct answer -d. $50
How many days does used vehicle dealer have to COMPLETE APPLICATION complete application to the
department from the date of sale?
a. 50
b. 30
c. 60
d. 20 - correct answer -b. 30
, California Dealer License Exam Prep2025–2026 –Complete
Set of Official Test Questions & Correct Ans
How many days does used vehicle dealer have to CLEAR APPLICATION to the department from the date
of sale?
a. 20
b. 30
c. 50
d. 60 - correct answer -c. 50
What is a broker?
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.
Can you sell a car with the intention to make profit without a license?
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.
Office Requirements?
1. 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)
Signage requirements?
Not less than 2 square feet and readable from at least 50 feet. Wholesaler dealers don't require this.
Both inspection of the vehicle notice and the no cooling-off period notice have to be?
At least 8x10 inches.
All deals negotiated in Spanish require the dealer to provide a spanish language contract.
a. True
B. False - correct answer -a. True
Set of Official Test Questions & Correct Ans
A conditional Sales Contract contains which of the following?
a. Must be signed by both buyer and seller
b. Terms of financing must be disclosed
C. All of the above - correct answer -C. All of the above
The maximum fee allowed for documentation preparation is:
a. $10
b. $25
c. $30
d. $65 - correct answer -d. $65
The maximum fee allowed for smog is:
a. $15
b. $20
c. $30
d. $50 - correct answer -d. $50
How many days does used vehicle dealer have to COMPLETE APPLICATION complete application to the
department from the date of sale?
a. 50
b. 30
c. 60
d. 20 - correct answer -b. 30
, California Dealer License Exam Prep2025–2026 –Complete
Set of Official Test Questions & Correct Ans
How many days does used vehicle dealer have to CLEAR APPLICATION to the department from the date
of sale?
a. 20
b. 30
c. 50
d. 60 - correct answer -c. 50
What is a broker?
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.
Can you sell a car with the intention to make profit without a license?
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.
Office Requirements?
1. 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)
Signage requirements?
Not less than 2 square feet and readable from at least 50 feet. Wholesaler dealers don't require this.
Both inspection of the vehicle notice and the no cooling-off period notice have to be?
At least 8x10 inches.
All deals negotiated in Spanish require the dealer to provide a spanish language contract.
a. True
B. False - correct answer -a. True
