Podcast
Questions and Answers
The National Motor Vehicle Title Information System requires which of the following? (Select all that apply)
The National Motor Vehicle Title Information System requires which of the following? (Select all that apply)
- Both A & B
- All vehicles have a Car Fax
- All warranty agreements be sent to DMV
- A red warning decal be placed on vehicles with branded titles (correct)
When a dealer sells a vehicle that was consigned to them to sell, they must:
When a dealer sells a vehicle that was consigned to them to sell, they must:
- Provide the seller an accounting and payment within 20 days of the sale (correct)
- Test drive it before agreeing to sell it
- Provide a warranty
- None of the above
Which of the following are permitted methods for computing interest rates? (Select all that apply)
Which of the following are permitted methods for computing interest rates? (Select all that apply)
- The Friedman Method
- Both A & B (correct)
- The Simple Interest basis method
- The Pre-computed Basis method
The maximum a dealer may charge a customer for a smog test is:
The maximum a dealer may charge a customer for a smog test is:
The basic DMV transfer fee to transfer the title into the buyer's name is:
The basic DMV transfer fee to transfer the title into the buyer's name is:
If the buyer defaults on a conditional sales contract, the dealer may, subject to proper notification to the buyer:
If the buyer defaults on a conditional sales contract, the dealer may, subject to proper notification to the buyer:
Which of the following are taxable in a vehicle sales transaction? (Select all that apply)
Which of the following are taxable in a vehicle sales transaction? (Select all that apply)
Which of the following are not taxable in a vehicle sales transaction? (Select all that apply)
Which of the following are not taxable in a vehicle sales transaction? (Select all that apply)
Buy here pay here (self-financing) dealers must:
Buy here pay here (self-financing) dealers must:
Which of the following is a required safety equipment item?
Which of the following is a required safety equipment item?
Advertisements must identify the dealer by which of the following?
Advertisements must identify the dealer by which of the following?
If a vehicle has been sold, any advertising on that vehicle must be withdrawn within:
If a vehicle has been sold, any advertising on that vehicle must be withdrawn within:
If a dealer buys a vehicle with an odometer that is not working, the dealer must:
If a dealer buys a vehicle with an odometer that is not working, the dealer must:
Where the dealer repairs an odometer, and the odometer is incapable of registering the same mileage as before service, the dealer must:
Where the dealer repairs an odometer, and the odometer is incapable of registering the same mileage as before service, the dealer must:
Is it ever legal for a dealer to reset, or 'roll back' an odometer to show less than the actual mileage?
Is it ever legal for a dealer to reset, or 'roll back' an odometer to show less than the actual mileage?
DMV requires special plates (dealer plates) be placed where on the vehicle?
DMV requires special plates (dealer plates) be placed where on the vehicle?
Auto brokers must do which of the following?
Auto brokers must do which of the following?
Which of the following is not required to transfer a vehicle?
Which of the following is not required to transfer a vehicle?
Which of the following must sign the Certificate of Ownership?
Which of the following must sign the Certificate of Ownership?
Registration fees are due at the time of the retail sale where:
Registration fees are due at the time of the retail sale where:
If the registration of a vehicle expires while a vehicle is in the dealer's inventory, is the dealer responsible for paying late registration penalties?
If the registration of a vehicle expires while a vehicle is in the dealer's inventory, is the dealer responsible for paying late registration penalties?
A dealer shall submit a registration application and fees to DMV within how many days of the date of sale?
A dealer shall submit a registration application and fees to DMV within how many days of the date of sale?
An administrative service fee is imposed for which of the following? (Select all that apply)
An administrative service fee is imposed for which of the following? (Select all that apply)
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Study Notes
National Motor Vehicle Title Information System
- Requires a red warning decal on vehicles with branded titles.
Consignment Sales
- Dealers must provide sellers an accounting and payment within 20 days of the sale when selling consigned vehicles.
Interest Rate Calculation
- Permitted methods include pre-computed basis and simple interest basis.
Smog Test Charges
- Maximum allowable charge for a smog test is $50.
DMV Title Transfer Fee
- Basic fee to transfer a title into the buyer's name is $15.
Conditional Sales Contract Default
- Dealers can accelerate the amount due, repossess the vehicle, and sell the vehicle after proper notification if the buyer defaults.
Taxable Fees in Vehicle Sales
- Document preparation fees and smog fees paid to the dealer/seller are taxable.
Non-Taxable Fees in Vehicle Sales
- Finance charges, insurance charges, and smog certificate fees (paid to the state) are not taxable.
Buy Here Pay Here Dealers
- Must offer warranties of 30 days or 1,000 miles and provide fair market value notices on vehicles.
Required Safety Equipment
- Smog equipment is mandatory.
Advertising Requirements
- Advertisements must identify the dealer by the dealership name.
Advertising Withdrawal Protocol
- Any advertising on a sold vehicle must be withdrawn within 48 hours.
Odometer Considerations
- Dealers must repair broken odometers before selling and provide written declarations when fixing odometers that cannot register the previous mileage.
Odometer Reset Legality
- It is illegal to reset or "roll back" an odometer to show less than actual mileage, regardless of buyer notifications.
Dealer Plate Placement
- DMV requires dealer plates to be placed in the rear, over the existing license plate.
Auto Brokers' Regulations
- Deposits are limited to 2.5% of the purchase price and must be kept in a separate trust account.
Vehicle Transfer Requirements
- Transfer of a vehicle does not require a report of prior service records since new.
Certificate of Ownership Signatures
- The legal owner, registered owner, and transferee must all sign the Certificate of Ownership.
Registration Fees Timing
- Registration fees are due when the registration will expire within 30 days of sale or if already expired.
Dealer Responsibility for Registration Fees
- Dealers are not responsible for late registration penalties if registration expires while in their inventory.
Registration Application Submission
- Dealers must submit registration applications and fees to DMV within 30 days of the date of sale.
Administrative Service Fee
- An administrative service fee may be imposed for failing to notify DMV of a sale within 5 days, not attaching temporary identification forms, or not correcting registration applications within 50 days.
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