Used Motor Vehicle
How to Manual
For Dealer License Applicants
Pre-Licensing Edition
Please remember if you paid for this course by credit card:
[email protected] | www.gotplates.com | Tel: 1.800.901.5950 | Fax: 1.888.948.1795 | 1601 Folsom St. SF, CA, 94103
© 2006 TriStar Motors, L.L.C. | All Rights Reserved
TriStar Motors ~ GotPlates.com
Pre-Licensing How To Manual and Practice Test
HOW TO MANUAL - for Dealer License Applicants
Our dealer education meets the requirements of the DMV.
Within this Manual:
The licensing checklist a New Used Dealer Applicant must complete to pass inspection
and become licensed.
The Quick Review Study Guide, our way to guarantee you will pass the DMV
Examination.
The practice exam, with which you will have confidence to pass the DMV examination.
Our hope is that you will walk away today learning all you need to begin your business
and have a resource.
THANKS, From the TriStar Team
We teach in the following cities:
San Francisco
Bakersfield
Paso Robles
Santa Barbara
Garden Grove
San Carlos
Modesto
San Diego
Campbell
Salinas
Fremont
Fresno
Fairfield
Santa Rosa
Los Angeles
Walnut Creek
Sherman Oaks
You may Sign up for classes in any of the following ways:
Online Reservation:
www.gotplates.com
Reservation Answering Service:
1.800.901.5950
Reservation FA:
1.888.948.1795
E – mail:
[email protected]
Class Tutorial available on the website: www.gotplates.com
Licensing Checklist
The process can be broken down into three steps:
9
9
9
Dealer Class, Practice Exam & Certificate
Getting your bond & submitting an Application
Final location inspection by your DMV Inspector
Here is a list of everything:
•
Dealer Education School, Call TriStar Motors 800 - 901 - 5950 and to attend obtain
your Certificate.
•
Register On-Line at www.gotplates.com
Everyone must take the New Dealer Class,
http://www.dmv.ca.gov/pubs/vctop/d05/vc11704_5.htm
•
Obtain the DMV Inspector’s number for your area and leave a message to schedule
the examination. The DMV website @ www.dmv.ca.gov
[email protected] | www.gotplates.com | Tel: 1.800.901.5950 | Fax: 1.888.948.1795 | 1601 Folsom St. SF, CA, 94103
© 2006 TriStar Motors, L.L.C. | All Rights Reserved
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Pre-Licensing How To Manual and Practice Test
Then from the dmv website, www.dmv.ca.gov, the student must find the:
list of DMV inspectors, http://www.dmv.ca.gov/fo/inspector_office.htm
application for dealers license,
http://www.dmv.ca.gov/vehindustry/ol/forms/vehicledealer.htm
list of registration forms, http://www.dmv.ca.gov/forms/formsreg.htm
•
Pay $ 16. and pass the DMV exam.
When you have studied and are prepared for the DMV dealer examination the
student will make an appointment with the DMV Inspector. The student will need
to take their:
CA photo ID & TriStar issued DMV Certificate of Completion.
The DMV dealer test is 30 minutes long, 40 questions, multiple choice.
The student must get 28 correct out of 40, 70%, and three chances are allowed
on one certificate.
If the student does not pass, TriStar supplemental training is always FREE.
If the student fails the test three times, TriStar will make a full refund.
•
Choose the Name, Location and Type of dealership.
Once the testing is complete the student begins to build the business.
Every dealer needs to choose a name of the dealership and a location.
Every dealer MUST have an office.
Every dealer needs to choose the type of dealership and vehicle type with
endorsements.
Dealer types:
Vehicle Types:
Endorsements:
Retail or Wholesale Only
( Retail includes Wholesale )
A/C
M/C
ATV
MH
Rec T
Trl
SM
cars and trucks
motorcycles
all terrain vehicles
motorhome
recreational trailer
trailer
snowmobile
AutoBroker
[email protected] | www.gotplates.com | Tel: 1.800.901.5950 | Fax: 1.888.948.1795 | 1601 Folsom St. SF, CA, 94103
© 2006 TriStar Motors, L.L.C. | All Rights Reserved
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Pre-Licensing How To Manual and Practice Test
•
Obtain the Zoning Verification Letter.
Every dealer must have their location zoning approved, using the proper DMV
form, by the local planning authority for the office location.
The proper zoning form: http://www.dmv.ca.gov/forms/ol/ol902.pdf
•
File a Fictitious Name Statement with the county clerk and have it published in a
local paper.
The dealer must file a Fictitious Name Statement with the county clerk of
jurisdiction for the office location.
A list of California county websites:
http://www.csac.counties.org/default.asp?id=7
•
Obtain a Surety Bond in the amount of $ 50,000. Wholesale & less than 25 cars/
year then $ 10,000.
The surety bond is a promise by the dealer to honor all obligations on behalf of
the dealership, including DMV fees and penalties, State sales tax and a judgment
by any court against the dealership.
Cash, Savings or a Bond may be posted.
Your credit report will set the Bond Premium
Some credit scores will require collateral.
The DMV form needed to submit your bond:
http://www.dmv.ca.gov/forms/ol/ol25.htm
If less than 25 cars per year & wholesale only:
http://www.dmv.ca.gov/forms/ol/ol25b.pdf
•
Obtain a Business License
The city or county issuing the zoning permission letter will usually require a business
license.
•
Obtain a Live Scan Fingerprint Card.
To obtain a location check: www.doj.ca.gov
DMV Live Scan information:
http://www.dmv.ca.gov/vehindustry/ol/livescan.htm
DMV Sample Live Scan Form
http://www.dmv.ca.gov/forms/ol/dmv8016.pdf
•
Obtain a Board of Equalization Seller’s Permit.
[email protected] | www.gotplates.com | Tel: 1.800.901.5950 | Fax: 1.888.948.1795 | 1601 Folsom St. SF, CA, 94103
© 2006 TriStar Motors, L.L.C. | All Rights Reserved
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Pre-Licensing How To Manual and Practice Test
To obtain a location of a field office: http://www.boe.ca.gov/info/phone.htm
Board Information on Registration:
http://www.boe.ca.gov/info/reg.htm#sales
Application Form:
http://www.boe.ca.gov/pdf/boe400spa.pdf
•
Complete the Application and have someone read it over for you to look for errors
and omissions. Ask your DMV Inspector if you can FA it in for review.
•
Call the DMV Inspector and submit the Application with your Bond Declaration Form.
You must have a Bond in place to submit your application. If you wish to be
considered for a temporary license, you must have all photos completed as well.
list of DMV inspectors, http://www.dmv.ca.gov/fo/inspector_office.htm
DMV photo requirements:
http://www.dmv.ca.gov/vehindustry/ol/photoreq.htm
Generally you will need:
11 photos for retail
8 for wholesale. They are:
1
2
3
4
5
6
7
8
9
10
11
Building photo
Outside sign photo ®
Display area photo ®
Office
Business License posting photo
Resale Permit posting photo
Telephone
Interior Signs ®
Locked Cabinet
Checkbook
Dealer Book
•
Build your office before you contact the DMV Inspector for final inspection and
clearance.
•
Obtain a phone and have a phone line installed in the name of the dealership,
including a 411 listing.
•
If retail, Obtain and install exterior signs. One sign if sole user of the location.
Multiple signs if mixed use at the location.
•
If retail, Install the two Office Signs provided by TriStar:
o The No Cooling Off Period Notice to Public
o The Inspection of Vehicle Notice to Public
Create a locked cabinet, desk drawer, file cabinet or safe to store DMV report of sale
forms.
•
[email protected] | www.gotplates.com | Tel: 1.800.901.5950 | Fax: 1.888.948.1795 | 1601 Folsom St. SF, CA, 94103
© 2006 TriStar Motors, L.L.C. | All Rights Reserved
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Pre-Licensing How To Manual and Practice Test
•
Open a Bank Account in the name of the dealership.
•
Label a thick 3 ring binder as your dealer book. This book will hold for all updates
sent by the DMV, all ROS forms you might have to void & your broker log.
•
For registration forms write to:
DMV Forms Office
P.O. Bo 932242
Sacramento, CA 94232
Use the list of forms from the DMV website & add the REG 262 to the list.
list of registration forms, http://www.dmv.ca.gov/forms/formsreg.htm
Draft a letter on your dealer letterhead including a copy of your DMV certificate of
completion requesting 25 of each listed form.
These forms are sent at no charge.
•
Contact a Law Supply for forms & disclosures.
Their website for dealer forms:
http://www.reynoldsandreynolds.com/for_customers/solutions/forms/inde.asp
The two forms needed:
Conditional sales contract CA553
- English copy, 4 per set, latest version
- Spanish Copy, 1 per set, latest version
As-Is no warranty for Federal Buyers Guide, 327D
•
•
•
Create & have ready photos of your setup.
Instruction on photos @
www.dmv.ca.gov
Final inspection follows in 90 – 120 days following clearance from Sacramento.
•
•
Call the DMV Inspector for an inspection appointment.
When you pass inspection you will receive your:
o dealer number
o temporary license
o
o
special plates
report of sale forms, for your type of license.
[email protected] | www.gotplates.com | Tel: 1.800.901.5950 | Fax: 1.888.948.1795 | 1601 Folsom St. SF, CA, 94103
© 2006 TriStar Motors, L.L.C. | All Rights Reserved
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Pre-Licensing How To Manual and Practice Test
Quick Review Study Guide
The examination can be broken down into three steps:
9 60% of the exam is numbers.
9 You must remember who signs what and when.
9 You must remember the sales procedure.
Here is a list of everything, fill in the blanks, answers in:
• What is the minimum passing score
for the DMV Exam?
______________
• What is the DMV dealer test fee?
______________
• What is the number of vehicles
you can sell per year without a
valid license?
______________
• What is the required
bond or cash amount?
______________
• If you post cash, how many years
after you close will the DMV
hold your money?
______________
• What is the maximum distance
between your retail display area
and your office?
______________
[email protected] | www.gotplates.com | Tel: 1.800.901.5950 | Fax: 1.888.948.1795 | 1601 Folsom St. SF, CA, 94103
© 2006 TriStar Motors, L.L.C. | All Rights Reserved
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TriStar Motors ~ GotPlates.com
Pre-Licensing How To Manual and Practice Test
• What is the minimum square
footage of the retail dealer sign?
______________
• What is the minimum distance
the sign can be read from?
______________
• What is the original application fee? ______________
• What is the renewal application fee? ______________
• What is the permanent or temporary
branch location fee?
______________
• What is the processing fee for the
Livescan fingerprint card?
______________
• What is the fee for the
dealer special plate not
including county taxes?
______________
• When a dealership is going to be
moved how far in advance must the
DMV receive written notice?
______________
[email protected] | www.gotplates.com | Tel: 1.800.901.5950 | Fax: 1.888.948.1795 | 1601 Folsom St. SF, CA, 94103
© 2006 TriStar Motors, L.L.C. | All Rights Reserved
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Pre-Licensing How To Manual and Practice Test
• When a dealership is going to be
sold how far in advance must the
DMV receive written notice?
______________
• When a corporation is going to make
a change far in advance must the
DMV receive written notice?
______________
• What is the corporate change fee? ______________
• What is the initial autobroker fee?
______________
• What is the renewal autobroker fee? ______________
• Once a consignment vehicle is sold
how many days does the dealer have
to make an accounting & payment? ______________
• What is the maximum a dealer can
charge for document preparation?
______________
• What is the maximum a dealer can
charge for smog inspection,
which is taxable?
______________
[email protected] | www.gotplates.com | Tel: 1.800.901.5950 | Fax: 1.888.948.1795 | 1601 Folsom St. SF, CA, 94103
© 2006 TriStar Motors, L.L.C. | All Rights Reserved
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TriStar Motors ~ GotPlates.com
Pre-Licensing How To Manual and Practice Test
• What is the maximum a dealer can
charge for a smog certificate,
which is not taxable?
______________
• What is the fee a dealer must
charge for a retail transfer?
______________
• How many days of registration
must remain on the date of sale
to avoid collecting new fees
from the customer?
______________
• What is the basic sales tax rate?
______________
• How many days does a dealer
have to get the notice to DMV,
not counting the date of sale?
______________
• How many days does a dealer
have to get the fees to DMV,
not counting the date of sale?
______________
• How many days does a dealer
have to get the documents to DMV,
not counting the date of sale?
______________
[email protected] | www.gotplates.com | Tel: 1.800.901.5950 | Fax: 1.888.948.1795 | 1601 Folsom St. SF, CA, 94103
© 2006 TriStar Motors, L.L.C. | All Rights Reserved
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Pre-Licensing How To Manual and Practice Test
• How many days does a dealer
have to return corrections to DMV,
not counting the date of sale?
______________
• What is the dollar amount of penalty,
ASF, when a dealer fails to send the
5 day notice?
______________
• What is the dollar amount of penalty,
ASF, when a dealer fails to post the
correct notice in the vehicle?
______________
• What is the dollar amount of penalty,
ASF, when a dealer fails to send the
documents to DMV within 30 days? ______________
• What is the dollar amount of penalty,
ASF, when a dealer fails to complete
the transaction within 50 days?
______________
• What is the dollar amount of a
ONE WAY permit when a dealer
sends a vehicle out of state?
______________
• What is the dollar amount of a
quick title request?
______________
• How quickly is a quick title issued?
______________
[email protected] | www.gotplates.com | Tel: 1.800.901.5950 | Fax: 1.888.948.1795 | 1601 Folsom St. SF, CA, 94103
© 2006 TriStar Motors, L.L.C. | All Rights Reserved
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Pre-Licensing How To Manual and Practice Test
• What is the minimum percentage of
brake pad allowable to pass
the Division 12 safety inspection?
_____________
• What is the minimum depth of
tire tread allowable to pass the
Division 12 safety inspection?
______________
• What is the maximum mileage
to register a vehicle without
having to pass a smog inspection?
______________
• What percentage of the price do you
use to figure the monthly tax basis
for personal use of the dealer plate? ______________
• What percentage of the price do
you use to figure the salesperson’s
monthly tax basis for personal
use of the dealer plate?
______________
• When a dealer places an ad, the
license plate or how many of the
VIN must be used in the ad?
______________
• When a dealer sells a vehicle, how
much time is allowed to make
notification to remove the ad?
______________
[email protected] | www.gotplates.com | Tel: 1.800.901.5950 | Fax: 1.888.948.1795 | 1601 Folsom St. SF, CA, 94103
© 2006 TriStar Motors, L.L.C. | All Rights Reserved
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Pre-Licensing How To Manual and Practice Test
• When a dealer hires or fires a
vehicle salesperson how much
time is allowed to make
notification to DMV?
______________
Please Note:
You may review your answers by checking the Answer Key in the back of the
Pre-Licensing Dealer Handbook.
Please continue on to the multiple choice test on the next page…..
[email protected] | www.gotplates.com | Tel: 1.800.901.5950 | Fax: 1.888.948.1795 | 1601 Folsom St. SF, CA, 94103
© 2006 TriStar Motors, L.L.C. | All Rights Reserved
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Pre-Licensing How To Manual and Practice Test
Multiple Choice Test
Instructions: Please mark the correct answers 1-80.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
How often must the license be renewed with the DMV?
Every 6 months
Every 2 years
Once a year
Every 5 years
How much bond is required for retail sales?
$ 10,000
$ 5,000
$ 50,000
Varies by License
How much bond is required for wholesale?
$ 10,000
$ 50,000
$ 5,000
Varies by sales volume
When may a lesser bond of $ 10,000. be allowed?
Wholesale Only
Retail < 25/ year
Wholesale < 25/ year
Wholesale < 50/ year
How much grace time is allowed for license or bond renewal?
10 days
None
One week
Varies by License
How often must the dealer attend training for license renewal?
Every 6 months
Once a year
Every 2 years
Every 5 years
Who should attend training for license renewal?
Owner
Spouse
Manager
Licensed Sales Person
When may a class exemption be granted?
Wholesale Only
Retail < 25/ year
Wholesale < 25/ year
Wholesale < 50/ year
If not the owner, who is required to attend training for license renewal?
Owners Spouse
Anyone with a Passport
Manager with Salesperson License
Manager with Photo ID
Which item is required in your sales office?
Fax machine
Answer machine
Locked Cabinet
Copier
[email protected] | www.gotplates.com | Tel: 1.800.901.5950 | Fax: 1.888.948.1795 | 1601 Folsom St. SF, CA, 94103
© 2006 TriStar Motors, L.L.C. | All Rights Reserved
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Pre-Licensing How To Manual and Practice Test
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
Who must post a valid resale permit from the board of equalization?
Wholesale Only
Wholesale < 24/ year.
Every Dealer
Wholesale < 50/ year.
Which of the following must be displayed in a retail location?
Dealer license
Inspection of vehicle notice
All of these
No cooling off/ cancellation option notices
Where are you to hold the blank report of sale forms?
Desk Drawer
Briefcase
Locked Cabinet
Back office
What must the dealer post when a salesperson is hired?
Sales Person License
Drivers License
Photo ID
Color copy of Sales Person License
How soon must the dealer notify DMV when a salesperson is hired or fired?
No notification
Notify DMV within 5 days
Before 1st sale
Notify DMV within 10 days
How much space is required for retail display area?
2 parking places
1 parking place
No spaces
1 for each type of vehicle
How much signage is required for retail license?
2 square feet
1 square foot
No sign required
4 square feet
The dealer erected sign must be visible from what distance?
15 Feet
25 Feet
50 Feet
100 Feet
What is required for a wholesale dealer accepting a consignment?
Illegal transaction
Sellers written permission
Auction access
Consignment agreement
What is required for a licensed dealer acting as a broker?
Fee for referral
Auction access
Buyers agent letter
Broker agreement
[email protected] | www.gotplates.com | Tel: 1.800.901.5950 | Fax: 1.888.948.1795 | 1601 Folsom St. SF, CA, 94103
© 2006 TriStar Motors, L.L.C. | All Rights Reserved
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Pre-Licensing How To Manual and Practice Test
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
What is required for a retail dealer accepting a consignment?
Illegal transaction
Sellers written permission
Auction access
Consignment agreement
When may a dealer engage in off site sales?
Never
At the buyers request
Sometimes
W/ temporary branch location
What does the term ROS stand for?
Really Off Site
Report of Sale
Record of Signatures
Required Official Signage
How many types of ROS does the used retail dealer use?
One
Two
Three
Four
What must the dealer do when selling from a branch location?
Use main location on ROS form
Use branch location on ROS form
Use either address
Use both addresses
Who is required to sign the buyer’s guide?
Buyer
Seller
Both
Neither
What must the dealer do when showing buyer’s guide to a buyer?
Obtain buyer signature and give them a copy
Just give them a copy
Prepare statement of facts disclosure
Make prior history notation on the sales
contract
Who is required to sign the conditional sales contract?
Buyer
Seller
Both
Neither
What must the dealer do if he is unable to provide financing for the buyer?
Return all money
Return the trade – in
Return all money & the trade – in
Return money but keep document fee
What must the dealer do when a buyer has added accessories prior to delivery and backs out?
Return all money except document fee
Return all money except accessories
Return all money except deposit up to $ 500
Return all money
[email protected] | www.gotplates.com | Tel: 1.800.901.5950 | Fax: 1.888.948.1795 | 1601 Folsom St. SF, CA, 94103
© 2006 TriStar Motors, L.L.C. | All Rights Reserved
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Pre-Licensing How To Manual and Practice Test
31.
32.
33.
34.
35.
36.
37.
38.
39.
40.
The DMV applies penalties called ASF’s. The term ASF means?
All Should Follow
Administrative Service Fee
Arnie’s School Fund
Another Shortage Found
What must the dealer do when selling to a Spanish speaking customer?
Obtain translation
Have Spanish contracts
Attach Spanish copy to English sales contract
Explain the English contract the best you
can
The DMV notice of the retail ROS must be posted within how many calendar days to avoid a $ 5. ASF?
30 days
5 days
20 days
50 days
The DMV fees due on the retail ROS must be posted within how many calendar days to avoid a $ 5. ASF?
30 days
5 days
20 days
50 days
The DMV requires corrections to a retail application to be returned within how many calendar days to avoid
a $ 25. ASF?
30 days
5 days
20 days
50 days
The documents on the retail ROS must be posted within how many calendar days to avoid a $ 5. ASF?
30 days
5 days
20 days
50 days
What must the dealer submit with every retail sale?
REG 262 (bill of sale)
Safety inspection
Insurance card
Statement of facts
What must the dealer do if he collects too much money from the buyer?
Return half the refund
Return the excess
Return all money if asked
Split the difference
What does the Federal Division 12 rules for retail delivery require?
Implied Warranty
Extended Warranty
Service Contract
Smog compliance
What does compliance with the Federal Division 12 rules for retail delivery certify?
Service Contract
Extended Warranty of 30 days / 1000 miles
Minimum safety standard has been met
Smog compliance
[email protected] | www.gotplates.com | Tel: 1.800.901.5950 | Fax: 1.888.948.1795 | 1601 Folsom St. SF, CA, 94103
© 2006 TriStar Motors, L.L.C. | All Rights Reserved
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Pre-Licensing How To Manual and Practice Test
41.
42.
43.
44.
45.
46.
47.
48.
49.
50.
What of the following is the renewal license fee?
$ 151.
$ 101.
72 hours
96 hours
What of the following is the branch location fee?
$ 151.
$ 101.
$ 70.
$ 44.
How soon must the dealer notify DMV when there is a change of dealer ownership?
No notification
Notify DMV within 5 days
10 days prior to sale
30 days prior to sale
How soon must the dealer notify DMV when there is a change of dealer ownership involving a
corporation?
No notification
Notify DMV within 5 days
10 days prior to sale
30 days prior to sale
What of the following is the corporate change fee?
$ 151.
$ 101.
$ 70.
$ 44.
What color is a valid resale permit from the board of equalization?
White
Blue
Green
Goldenrod
In a mixed use setting, what else is required for retail display area?
Site directory
Clearly marked space
Nothing
Landlord letter of permission
How soon must the retail dealer pay the buyer when he sells a consigned vehicle?
Pay within 10 days
Pay within 20 days
Pay within 30 days
Pay within 5 days
What is required on the back side of the buyer’s guide?
List of repairs
Location repairs completed
Safety Inspection
Contact name and phone
What is the maximum the dealer can charge for document preparation?
$ 101.
$ 58.
$ 151.
$ 45.
[email protected] | www.gotplates.com | Tel: 1.800.901.5950 | Fax: 1.888.948.1795 | 1601 Folsom St. SF, CA, 94103
© 2006 TriStar Motors, L.L.C. | All Rights Reserved
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Pre-Licensing How To Manual and Practice Test
51.
52.
53.
54.
55.
56.
57.
58.
59.
60.
What is the penalty the dealer faces for excessive fees for smog inspection?
$ 5. ASF
License suspension
Unenforceable contract
$ 25. ASF
What items must the dealer charge sales tax upon?
Price of the vehicle
Price of accessories
Document Prep Fee
All of these items are taxable
What must the dealer create and have in his office with every sale?
Jacket
Safety Inspection
Insurance card
Statement of facts
The dealer must hold ROS forms in his office for how long?
7 years
5 years
2 years
4 years
In what order must the dealer use ROS forms?
Odd forms first
Even forms first
Numerical Order
Any order, as needed
The temporary memo regarding DMV fees due on the retail ROS allows posting within how
many business days to avoid a $ 5. ASF ?
30 days
5 days
20 days
50 days
What of the following ASF penalties carry a $ 25. fine?
No 5 day notice
No documents in 30 days
No window posting
Title application & corrections not
cleared in 50 days
What must the dealer do with the temporary operating permit?
Send to buyer
Post behind the visor
Post behind the visor
Place in any window visible from
outside the vehicle
What must the dealer do for DMV compliance if he is sells a vehicle for out of state delivery?
Hire a tow truck
Secure one way permit
Pre – register the vehicle
Secure one way permit OR pre –
register vehicle
What must the dealer charge for one way trip permit when selling a car for O/S delivery?
Included in price
Up to $ 58.25
$ 14.
$ 15.
[email protected] | www.gotplates.com | Tel: 1.800.901.5950 | Fax: 1.888.948.1795 | 1601 Folsom St. SF, CA, 94103
© 2006 TriStar Motors, L.L.C. | All Rights Reserved
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Pre-Licensing How To Manual and Practice Test
61.
62.
63.
64.
65.
66.
67.
68.
69.
70.
What is the minimum time allowed for the contract cancellation option?
24 hours
48 hours
72 hours
96 hours
Who must be offered the contract cancellation option?
Every financed customer
Every retail buyer w/ cash price less than
40k
Every retail buyer
Every Spanish speaker
What is the maximum contract cancellation option fee a dealer may charge for a $ 28,000 vehicle?
$ 75.
$ 280.
$ 150.
$ 250.
When may the option fee be waived?
Never
Sales Price over $ 30,000.
Anytime at the dealers discretion
Less than $ 10,000 sales price
What is the minimum allowable miles if the buyer purchases the cancellation option?
200
250
500
1000
What is the maximum total option and restocking fee allowed?
$ 175.
$ 350.
$ 500.
$ 900.
What is the definition of a full refund?
total price minus option and restocking fee
total price
Total price minus taxes and fees
Total price minus option taxes and fees
When must a dealer make a credit score disclosure?
When the dealer markups the loan rate
When the dealer is unable to finance
When the dealer offers in-house financing
Whenever the dealer runs a credit check
How many credit score disclosures must be presented?
One using the highest score obtained
One for each credit agency contacted
Two required every time
Three required every time
How many disclosures are required for dealer add-ons?
One for each item
No longer required
One for each item, with a total for all addons
Two disclosures for each item
[email protected] | www.gotplates.com | Tel: 1.800.901.5950 | Fax: 1.888.948.1795 | 1601 Folsom St. SF, CA, 94103
© 2006 TriStar Motors, L.L.C. | All Rights Reserved
19
TriStar Motors ~ GotPlates.com
Pre-Licensing How To Manual and Practice Test
71.
72.
73.
74.
75.
76.
77.
78.
79.
80.
The new law, AB 68 increases the penalties for failure to disclose to?
Infraction
Civil Matter only
Misdemeanor
Felony
Which of the following must be displayed in a retail location?
Contract Cancellation Option notice
Inspection of vehicle notice
All of these
No cooling off period notice
What is the maximum allowable dealer markup for loan assignment on a 60 month contract?
2.5 %
3%
2%
No limit, as long as the buyer signs a waiver
What advertising terms under AB 68 have new requirements?
certified
reconditioned
Safety checked
Pre-owned reconditioned
Under AB 68, when may a flood vehicle me sold as “ certified” ?
With salvage certificate
With division 12 safety check
With a one year warranty
Never
Under AB 68, when may a lemon law buyback car be sold as “ certified “ ?
With added one year warranty
With written guarantee
When vehicle cash price exceeds $ 10,000
Never
Under AB 68, when a dealer advertises a “ certified “ vehicle the dealer must maintain?
A mechanic on the premise
A licensed repair facility
A licensed smog inspection facility
A vehicle certification program
Under AB 68, when the buyer elects to purchase the cancellation option the dealer must?
Perform a walk-around with the buyer
Perform a written inspection report
Collect $ 250. at option signing
Take photos of the vehicle
Under AB 68, when the buyer elects to exercise the return option the dealer must?
Write down the vehicle miles on the title
Perform a written inspection report
Take photos of the vehicle
Collect $ 250. for restocking
Under AB 68, when a dealer rejects an optioned return the dealer must?
Return the trade-in
Issue a written explanation for rejection
Notify a dmv field office within 48 hours
Return the option fee
Please Note: You may review your answers by checking the Answer Key in the back of the
Pre-Licensing Dealer Handbook
[email protected] | www.gotplates.com | Tel: 1.800.901.5950 | Fax: 1.888.948.1795 | 1601 Folsom St. SF, CA, 94103
© 2006 TriStar Motors, L.L.C. | All Rights Reserved
20
TriStar Motors, L. L. C.
1601 Folsom Street
San Francisco, California, 94103
Please Call:
Office
1.800.901.5950
Reservation FAX
1.888.948.1795
E – mail
[email protected]
Class Website
www.gotplates.com
Donations
www.thestarproject.org
Please remember if you paid for this course by credit card:
[email protected] | www.gotplates.com | Tel: 1.800.901.5950 | Fax: 1.888.948.1795 | 1601 Folsom St. SF, CA, 94103
© 2006 TriStar Motors, L.L.C. | All Rights Reserved