New Dealer Practice Examination
A great training alternative for those seeking to becoming licensed dealers.
Anti-Car Theft Act: Act passed in 1992 to prevent and deter auto theft. Title II of the Act authorizes NMVTIS and is intended to address automobile title fraud. The NMVTIS Final Rule was published in the Federal Register on January 30, 2009.
Auto Recycler: A business that acquires vehicles for recycled use as parts, scrap, or similar purposes.
Brand: Descriptive labels regarding the status of a motor vehicle, such as “junk,” “salvage,” and “flood” vehicles.
Certificate of Title (Title): A document issued by a state showing ownership of an automobile.
Consumer: The individual or entity buying an automobile or financing the purchase of an automobile. Consumers include private individuals, dealers, auction companies or entities engaged in the business of purchasing used automobiles, lenders financing the purchase of new or used automobiles, and automobile dealers.
Insurance Carrier: An individual or entity engaged in the business of underwriting automobile insurance.
Junk Automobile: An automobile that:
(A) Is incapable of operating on public streets, roads, and highways; and
(B) Has no value except as a source of parts or scrap.
Junk Yard: An individual or entity engaged in the business of acquiring or owning junk automobiles for:
(A) Resale in their entirety or as spare parts; or
(B) Rebuilding, restoration, or crushing.
NMVTIS Operator: The individual or entity authorized or designated as the operator of NMVTIS under 49 U.S.C. 30502(b), or the office designated by the Attorney General, if there is no authorized or designated individual or entity.
Purchaser: The individual or entity buying an automobile or financing the purchase of an automobile. Purchasers may be private citizens, dealers, auction companies or entities engaged in the business or purchasing used automobiles, lenders financing the purchase of new or used automobiles, and automobile dealers.
Salvage Automobile: An automobile that is damaged by collision, fire, flood, accident, trespass, or other event, to the extent that its fair salvage value plus the cost of repairing the automobile for legal operation on public streets, roads, and highways would be more than the fair market value of the automobile immediately before the event that caused the damage. Salvage automobiles include automobiles determined to be a total loss under the law of the applicable jurisdiction or designated as a total loss by an insurer under the terms of its policies, regardless of whether or not the ownership of the vehicle is transferred to the insurance carrier.
Salvage Pool: An entity that acquires junk and salvage automobiles from a variety of parties and consolidates them for resale at a common point of sale.
Salvage Yard: An individual or entity engaged in the business of acquiring or owning salvage automobiles for:
(A) resale in their entirety or as spare parts; or
(B) rebuilding, restoration, or crushing.
This definition includes scrap vehicle shredders and scrap metal processors, as well as “pull- or pick-apart yards,” salvage pools, salvage auctions, and other types of auctions, businesses, and individuals that handle salvage vehicles (including vehicles declared a “total loss”).
Total Loss: The cost of repairing such vehicles plus projected supplements plus projected diminished resale value plus rental reimbursement expense exceeds the cost of buying the damaged motor vehicle at its pre-accident value, minus the proceeds of selling the damaged motor vehicle for salvage.
VIN: Vehicle Identification Number; a unique number given to each motor vehicle for identification purposes.
11580 of the insurance code
makes the prospective buyers insurance primary coverage
and makes the dealer insurance secondary coverage
if your prospective buyer stacks up the dealer car on a test drive
the dealer can make claim on the prospective buyers insurance
protect yourself with the proper paperwork on ALL test drives
11709. (a) A dealer’s established place of business, and other sites or locations as may be operated and maintained by the dealer in conjunction with his or her established place of business, shall have posted, in a place conspicuous to the public in each and every location, the license, or a true and exact copy of the license, issued by the department to the dealer and to each salesperson employed by the dealer and shall have erected or posted thereon signs or devices providing information relating to the dealer’s name and the location and address of the dealer’s established place of business to enable any person doing business with the dealer to identify him or her properly. A sign erected or posted pursuant to this subdivision, on an established place of business, shall have an area of not less than two square feet per side displayed and shall contain lettering of sufficient size to enable the sign to be read from a distance of at least 50 feet. This section shall not apply to a dealer who is a wholesaler involved for profit only in the sale of vehicles between licensed dealers.
(b) Notwithstanding Section 11704 and this section, a dealer may display vehicles at a fair, exposition, or similar exhibit without securing a branch license, if no actual sales are made at those events and the display does not exceed 30 days.
(c) A vehicle displayed displayed pursuant to subdivision (b) or (e) shall be identified by a sign or device providing information relating to the dealer’s name and the location and address of the dealer’s established place of business.
(d) This section shall not be applicable to a dealer who deals only in off-highway vehicles subject to identification, as defined in Section 38012.
(e) Notwithstanding Section 11704 and this section, a vessel dealer may display a trailer and may sell a trailer in conjunction with the sale of a vessel at a fair, exposition, or similar exhibit without securing a branch license if the display does not exceed 30 days.
Adobe Acrobat Reader is required to view, fill out and print forms. To incorporate the latest accessibility features download of the latest version of Acrobat Reader may be required. If you have problems with Acrobat Reader see the Adobe Troubleshooting page for possible solutions.
Adobe Acrobat Reader is required to view, fill out and print forms. To incorporate the latest accessibility features download of the latest version of Acrobat Reader may be required. If you have problems with Acrobat Reader or our PDF form, select PDF Troubleshooting. To obtain a form by mail, call DMV’s automated phone service 24 hours a day, 7 days a week at 1-800-777-0133. To speak to an operator call between the hours of 8 a.m. and 5 p.m. Monday – Friday, Pacific Standard Time. For large quantities, read “Ordering DMV Forms in Large quantities“.
once you have taken the car dealer class
once you have met with the dmv inspector and passed the test
you will download the dmv car dealer application
all owners of the dealership must:
take the class
pass the test
and be listed on the car dealer application
all owners must be listed on the DBA
filing a DBA ( doing business as )
is required by the DMV to complete
your car dealer license application
you will need the DBA to open a car dealer bank account
you will need to present it to the dmv inspector
· Del Mar
· San Jose
· Del Mar
· San Jose
DMV Car Dealer Licensing Checklist
The process can be broken down into three steps:
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,
· Obtain the DMV Inspector’s number for your area and
leave a message to schedule the examination.
The DMV website @ www.dmv.ca.gov
Then from the dmv website, www.dmv.ca.gov,
the student must find the:
list of DMV inspectors,
application for dealers license,
list of registration forms,
· 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,
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
ATV all terrain vehicles
Rec T recreational trailer
· 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
· 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:
Obtain a Board of Equalization Seller’s Permit.
To obtain a location of a field office:
Board Information on Registration:
· Complete the Application and have someone read it
over for you to look for errors and omissions.
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,
DMV photo requirements:
Generally you will need:
11 photos for retail
8 for wholesale, 9 for wholesale with a broker endorsement
1 Building photo
2 Outside sign photo ®
3 Display area photo ®
5 Business License posting photo
6 Resale Permit posting photo
8 Interior Signs ®
9 Locked Cabinet
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
The No Cooling Off Period Notice to Public
The Inspection of Vehicle Notice to Public
Car Buyer Bill of Rights Disclosure
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. Box 932242, Sacramento,CA, 94232
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 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
English copy, latest version
Spanish Copy, latest version
car buyer bill of rights option form
English copy, latest version
Spanish Copy,latest version
Not for Sale Sticker
· Create & have ready photos of your setup.
Instruction on photos @
· Final inspection follows in 90 – 120 days following
clearance from Sacramento.
The DMV Inspector will call you for an inspection appointment.
· When you pass inspection you will receive your:
car dealer license special plates
report of sale forms, for your type of license.
ARE YOU CONSIDERING A WHOLESALE CAR DEALER LICENSE IN CALIFORNIA ???
Invest $ 100. in your car dealer future
dont be stupid OR LAZY
and get scammed by out-of-state CAR DEALER LICENSE offers
we are gotplates.com at 800-901-5950
Which Class would you like?
|$200.00 – New Dealer Class*|
|$300.00 – Private New Dealer Class|
Type of Class Offered
|**X||Auto Support Group
|X||X||X||X||X||Motorsports Market On-Line Courses, Live Classes and Home Study
|X||X||X||X||X||Automotive Systems Analysis
|X||X||X||X||X||TriStar Motors, LLC
|X||X||24-7 Dealer Training Specialists
|X||X||California Auto Dealer Education
|X||Central Valley Dealers
Licensing Renewal Service
|X||Superior Vehicle Dealer Training Institute
|X||X||Inland Empire/Orange County Dealer School
|X||X||X||Dealer Training Experts of Northern California
|X||X||X||X||X||$85 Dealer Education
|X||X||X||X||Los Angeles Dealer School
|*X||Dealer License Seminars of San Diego
|X||X||X||X||X||Golden State Educational Services
|X||X||X||X||X||Dealer Education Services
|X||X||Coffer Dealer Education
|X||Cesar Carrascos Dealer Licensing Seminars
|X||Colby Learning Center of San Diego
|X||X||Dealers Support Group
|X||Online Auto Dealer ED
|X||California Accredited Dealer Education
Phone: (714) 300-4148
Last updated: 07/23/2012
turlock dmv car dealer license inspector lucy silva
congratulations on your recent dmv service retirement
good luck with your new car dealer education business
to reach lucy silva at her new location:
Modesto/Central Valley Dealer Education
An autobroker’s endorsement requires payment of fees as required by subdivision (d) of Section 9262 of the California Vehicle Code.
A dealer may not engage in brokering a retail sales transaction without having an autobroker’s endorsement to their dealer’s license.
Upon issuance of an autobroker’s endorsement to a dealer’s license, the department shall furnish the dealer with an autobroker’s log. The autobroker’s log remains the property of the department and may be taken at any time for inspection.
The autobroker’s log must contain the following information with respect to each retail sale brokered by that dealer:
A dealer who brokers a motor vehicle sale shall deposit directly into a trust account any purchase money, including purchase deposits, it receives from a consumer or a consumer’s lender.
our teachers are the bomb
practicing car dealer attorney
we have the best classes to become a car dealer
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WENDY MAEDA/GLOBE STAFF
The Tesla showroom at the Natick Mall has an electric car on display.
Across from the Victoria’s Secret at the upscale Natick Mall is the kind of stylish storefront where you would expect to buy designer jeans, boutique jewelry, and chic accessories.
But the expensive bauble on sale in this storefront is a car — the super-sleek, super-fast Tesla electric vehicle. And the Natick outpost may just be the car showroom of the future, as Tesla plans to soon introduce a midpriced model intended to broaden its appeal among car buyers.
That is, if Tesla wins its pitched battle with Massachusetts auto dealers over the right to sell its vehicles directly to the public from a comfy store, or over the Internet, rather than through a traditional car dealership, as usually required.
On Tuesday, the fight landed the two sides before the state Legislature, where Tesla and local auto dealers, through their state association, asked lawmakers to legislate the terms of car buying in Massachusetts in their respective favors.
The hearing Tuesday on Beacon Hill featured polar policies: one bill that would expressly outlaw Tesla’s direct-to-consumer sales model, and another that would legalize it.
“It really comes down to consumer choice,” said Natick state Representative David Linsky, who is sponsoring the pro-Tesla bill. “What delivers the best deal, the best service for the consumer? Let’s let the market determine it.”
PAUL SAKUMA/ASSOCIATED PRESS
Elon Musk is chief executive of Tesla, which is fighting battles in other states that have franchise laws like the one in Massachusetts.
The outcome of the case could help shape how consumers go about buying cars, holding out the prospect that it someday may be as easy as, say, going to the Apple store to order a new laptop.
The dealer franchise law was adopted to protect local car sellers from undue pressure from the major automakers by, for example, preventing manufacturers from opening their own nearby car lots and underselling their own dealers.
Robert F. O’Koniewski, executive vice president of the Massachusetts State Auto Dealers Association, said the law protects consumers because it encourages car sellers to compete with each other; allowing a carmaker to act as its own dealer would eliminate the dynamic of competition within the brand.
And all Tesla has to do, O’Koniewski said, is join the crowd and sell its cars through the independent dealer system.
“This has nothing to do with trying to prevent them from doing business in the Commonwealth,” O’Koniewski said. “It has everything to do with following the law, like the other 412 dealers have to do and the other 25 manufacturers have to do.”
But Tesla counters that independently owned dealers are in effect exerting a monopoly on car sales in Massachusetts. James C. Chen, the company’s vice president of regulatory affairs, told lawmakers Tuesday that Tesla might shift to a franchised dealership model in the future, but for now the 10-year-old company only makes 21,000 cars per year — not nearly enough to support a network of dealerships selling Teslas exclusively.
That means a dealer would have to sell Teslas alongside gas-powered vehicles, which sets up a conflict of interest, Chen argued.
“There is a financial disincentive for them to sell electric vehicles, versus their internal combustion engine vehicles,” he said. “To tout the benefits of an electric car would naturally denigrate the incumbent technology.”
This is the second major debate in the past year in Massachusetts about competition in the auto industry. The “right to repair” battle pitted auto manufacturers against independent mechanics over access to diagnostic and repair information, which now must be made available through a universal system by 2018. Proponents argued it was unfair for carmakers to monopolize that information and force consumers to bring their vehicles to auto dealers, where manufacturers would receive a slice of the repair bill.
Tesla, meanwhile, is fighting similar battles in many other states that have franchise laws like the one in Massachusetts. The company is also dealing with a troublesome setback, as federal safety inspectors on Tuesday launched an investigation into whether Tesla’s Model S electric car is vulnerable to fires because roadway debris can pierce the car’s underbody and battery — igniting fires in two Model S cars recently.
The lower-powered Tesla begins at around $70,000 and can top $120,000 with a larger battery and the kind of luxury amenities found in cars made by Jaguar and BMW.
Despite its price tag, the Tesla Model S has wowed car aficionados and industry reviewers with its super-fast performance, super-sleek design, and high-tech interior. No less a gimlet eye than Consumer Reports earlier this year gave the Model S a near-perfect rating — 99 out of 100 — and described the car’s performance as “a silent yet potent surge of power that will make many sports cars weep with envy.”
The higher-powered version can travel about 265 miles on a single charge and recovers about 30 miles for every hour of charging with a traditional plug.
Supercharging stations, which Tesla is building at highway rest stops across the country — with two in Connecticut — can provide a simple repower in less than an hour.
The company plans within the next few years to unveil a more affordable car that it expects will start at about $35,000, though a firm release date has not been set. More immediately, Tesla will again try to push the futuristic envelope with its Model X SUV, scheduled for next year at a similar price as the Model S. The Model X will feature “falcon wing” doors that open vertically.
The Tesla’s performance is one of the reasons Hingham resident Laura Burns bought the Model S. But she said the best part was the direct-buying experience.
“There may be people who like to haggle with dealers, but I don’t know any,” she said. “Most people hate it. The experience was night and day.”
With the average price of used cars at a four-year low and the proliferation of certified preowned programs offered by car makers, this is a great time to be shopping for a used car. But you need to be well-prepared to get your money’s worth when you drive off the lot.
Some of the best news for used-car shoppers is that pent-up demand is driving up sales of new cars. New-car sales are rebounding strongly and Edmunds.com experts say that trend will continue next year. Plus, the number of expiring leases also is increasing. All this points to a bigger inventory of used cars.
It also means some models are sitting on the lots a bit longer, and the prices are going down. According to Edmunds.com, the average price for used cars in the third quarter was $15,617, the lowest it has been in four years.
If you’re after a Volvo, GMC or Chevrolet, then you’re in luck. According to Edmunds.com, those three brands sat on lots longer than others and therefore typically carried a lower price. But if you’re after a Honda, Toyota or Lexus, you may find an above-average price. These cars were most popular in the third quarter.
While timing and prices are important, there is also work to be done before you buy a used car, whether it’s from a dealer or an individual. Don’t just drive the car around the block. Give the car a thorough test drive on highways and hills.
Look for an inspection checklist like this used-car work sheet from DMV.org. It reminds you of all the things you need to do, like bringing a CD to test the car stereo, checking the windshield wipers, and making sure the car manual is in the glove department.
Research before you shop. Use a site like Edmunds.com, Kelley Blue Book’s KBB.com orTrueCar.com to estimate the value of the car. This will help you determine a fair price before you go into negotiations.
You may also want to research typical repair and maintenance costs for the vehicle you’re interested.
Some cars are far more expensive to fix and maintain than others, so even if you get a low price, you might still be paying big bucks in the long run. You can use calculators like Edmunds.com’s True Cost to Own feature. It calculates a variety of factors including maintenance and repairs to determine how much your vehicle will actually cost you. Also, check with your insurance company to see if your insurance will go up.
The Federal Trade Commission recommends checking an independent database service to review a vehicle’s history. They suggest the Justice Department’s National Motor Vehicle Title Information System. There is a small fee to receive a report, ranging from about $2.95 to $12.99. per report.
This service is good for more than just cars. You can find reports on buses, trucks, motorcycle, RVs, motor homes—even tractors. The report covers information about the vehicle’s title, odometer, and some damage history.
The National Insurance Crime Bureau has a free database where you enter a car’s vehicle identification number, or VIN, and can access a car’s history to see if it has been reported as a stolen but not recovered car, or a salvage vehicle. According to the NICB, the vehicles stolen the most often in 2012 were the Honda Accord, Honda Civic, Ford full-size pickup, Chevrolet full-size pickup, and Toyota Camry.
The FTC also suggests checking with a local consumer protection agency or your state’s attorney general’s office to find out if a dealer has any unresolved complaints.
The so-called Used Car Rule requires dealers to post a buyer’s guide in each used car (with the exception of dealers in Maine and Wisconsin). It must state whether a vehicle is being sold “as is” or under warranty, including how much of the repairs a dealer will cover under that warranty. Among other things, it will also tell you to have the car inspected by an independent mechanic before you purchase it. This is advice you should definitely take.
And finally, in many states you can purchase the right to a “cooling-off period.” You pay a fee based on the purchase price and if for any reason you change your mind, you have the right to bring the car back within a specified time period. Alternately, some states don’t have cooling-off periods, so check with your state’s motor vehicle department.
Emmy Award-winning broadcast journalist, documentarian and author Jeanette Pavini covers consumer and investigative news for numerous publications, radio and television. Jeanette is based in the San Francisco Bay Area.
a real car dealer teaching car dealer school
would you be surprized to know
we are the only licensed retail car dealers
certified to teach car dealer education
we are not attorneys
we are not tax advisors
we are not bond agents
we are not insurance salespeople
we are not selling you car dealer forms
WE TEACH CAR DEALER SCHOOL
with real life experience
we specialize in california dmv certified car dealer license training
no one does it better
getting started requires our
dmv requires a training class to take your car dealer license examination
dmv requires you pass a 40 question exam to submit your car dealer license application
we teach the required dmv license certification class in more places than anyone else
find out why our competition struggles to match our offer
could it be better value??
could it be better pricing??
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visit our website to see our entire class schedule
joseph is our car dealer license instructor on the central coast
we have a classes in aptos, salinas, san luis obisbo and santa barbara every month
good luck with getting your car dealer license
Jody Forster Enterprises is proud to be a Full Service Company providing Auto Dealerships with all their business necessities since 1991. Jody Forster understands the ins & outs of the Auto Business as her entire family have been actively working in the Auto Industry for the past 55 years. We believe having an Automotive background gives us the Edge Above All the Others!
Jody Forster began with a small 6 x 6 booth and expanded covering Los Angeles Auto Auction, California Auto Dealer Exchange, Southern California Auto Auction, Riverside Auto Auction, Adesa Los Angeles and Quartz Dealer Direct Auto Auction. Currently, Jody Forster covers South Bay Auto Auction in Gardena on Monday and Norwalk Auto Auction in Norwalk on Tuesday. Come on out and meet with her.