Instructions:



HOW TO MANUAL - for Car Dealer License Applicants

Our Car Dealer Education meets the requirements of the DMV for Pre-Licensing students.

Within this Dealer Education Manual:

The licensing checklist for a New Used Dealer Applicant must be complete to pass inspection and become licensed.

The Quick Review Study Guide; our way to guarantee you will pass the DMV Examination.

With The Practice Exam, 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 reliable and trusted resource.

THANKS, From the TriStar Team

We teach in the following cities:

Aptos

Auburn

Anaheim

Bakersfield

Burlingame

Campbell

Fairfield

Fremont

Fresno

Garden Grove

Los Angeles

Menlo Park

Modesto

Napa

Novato

Oakland

Ukiah

Palm Springs

Redding

Riverside

Sacramento

Salinas

San Clemente

San Diego

San Francisco

San Jose

San Luis Obispo

Santa Barbara

Santa Rosa

Sherman Oaks

South Lake Tahoe

Stockton

Tracy

Temecula

Van Nuys

Walnut Creek

You may Sign up for classes in any of the following ways:

Online Reservation:

Reservation Answering Service: 1.800.901.5950

Reservation FA: 1.888.948.1795

E – mail: becomeacardealer@

Class Tutorial available on the website:

Car Dealer Blog:

Car Dealer Twitter: autogodfather

Car Dealer Facebook autogodfather

Licensing Checklist

The process can be broken down into three steps:

✓ Dealer Class, Practice Exam & Certificate

✓ Getting your bond & submit an Application

✓ Final location inspection by your DMV Inspector

Here is a list of everything:

• Dealer Education School, Call TriStar Motors 800 - 901 - 5950 to attend and obtain your Certificate.

• Register On-Line at

Everyone must take the New Dealer Class,

• Obtain the DMV Inspector’s number for your area and leave a message to schedule the examination. The DMV website @ dmv.

Then from the DMV website, dmv., the student must find:

 

The list of DMV inspectors,

 

The application for dealers license,

 

The list of registration forms,

• Pay $ 16. and pass the DMV exam.

When you have studied and are prepared for the DMV dealer examination you 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:        Retail or Wholesale Only

( Retail includes Wholesale )

 

        Vehicle Types:        A/C       cars and trucks

                                     M/C      motorcycles

                                    ATV      all terrain vehicles

                                     MH       motorhome

                                     Rec T    recreational trailer

                                     Trl        trailer

                                     SM        snowmobile

 

Endorsements:     AutoBroker

• 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: 

• 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: 



• 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:



If less than 25 cars per year & wholesale only:



• 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:

DMV Live Scan information:



DMV Sample Live Scan Form



• Obtain a Board of Equalization Seller’s Permit.

To obtain a location of a field office:

Board Information on Registration:

Application Form:

• Complete the Application and have someone read it over for you to look for errors and omissions. Ask your DMV Inspector if you can FAX 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,

Note: Wholesale Applications must be sent to DMV Headquarters:

Department of Motor Vehicles Occupational Licensing Unit

P.O.Box 932342, Mail Station L224

Sacramento, CA. 94232 – 3420

*USPS Certified Mail Only.

DMV photo requirements:



Generally you will need:

11 photos for retail, 8 for wholesale, 9 for wholesale with Broker Endorsement. They are:

1. Building photo

2. Outside sign photo ® + (B)

3. Display area photo ®

4. Office

5. Business License posting photo

6. Resale Permit posting photo

7. Telephone

8. Interior Signs ®

9. Locked Cabinet

10. Checkbook

11. 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 three Office Signs provided by TriStar:

o The No Cooling Off Period Notice to Public

o The Inspection of Vehicle Notice to Public

o Contract Cancel Option Notice to Public

• Create a locked cabinet, desk drawer, file cabinet or safe to store DMV report of sale forms.

• 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

Fax: (916) 928 – 6817

To request on letterhead; indicate form(s) by form number or form title, quantity needed, street address for delivery and telephone number. (Not a P.O.Box)

DMV will process your request if the forms are in stock and if they are not available, you will be notified.

If you have questions regarding your order, Call (916) 928 – 7901

Write to: Department of Motor Vehicles

Materials Management Section

Inventory Control Operations

4201 Sierra Point Drive, Suite 112

Sacramento, CA. 95834 - 1998

Use the list of forms from the DMV website & add the REG 262 to the list.

list of registration forms:

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 Law Supply for forms & disclosures.

Their website for dealer forms:



The four 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

Car Buyer Bill of Rights Cancellation Option

“Not For Sale” Sticker

• Create & have ready photos of your setup.

• Instruction on photos @ dmv.

• Final inspection follows in 90 – 180 days following clearance from Sacramento.

• DMV forms starter kit : : $55.

• Call the DMV Inspector for an inspection appointment.

• When you pass inspection you will receive your:

o dealer number

o temporary license

o special plates

o Report of Sale forms, for your type of license.

Quick Review Study Guide

The examination can be broken down into three steps:

✓ 60% of the exam is numbers.

✓ You must remember who signs what and when.

✓ 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? ______________

• 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? ______________

• 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? ______________

• 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? ______________

• 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? ______________

• 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? ______________

• 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…..

Multiple Choice Test

Instructions: Please mark the correct answers 1-80.

| |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 |

| | |

| |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 |

| | |

| |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 |

| | |

| |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 |

| | |

| |What of the following is the annual renewal license fee? |

| | |

| |$ 151. |

| | |

| |$ 101. |

| | |

| | |

| |$ 70. |

| | |

| |$ 93. |

| | |

| |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. |

| | |

| |$ 45. |

| | |

| | |

| |$ 151. |

| | |

| |$ 55. |

| | |

| |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 $ 20. 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. |

| | |

| |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 add-ons |

| | |

| |Two disclosures for each item |

| | |

| | |

| |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

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