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Quizzes > Business & Finance

DMV Salesperson Practice Test for Motor Vehicle Sales License

Quick, free salesperson license practice test with instant answers and explanations.

Editorial: Review CompletedCreated By: John FarrellUpdated Aug 28, 2025
Difficulty: Moderate
2-5mins
Learning OutcomesCheat Sheet
Paper art illustration for DMV salesperson knowledge quiz on a coral background

This quiz helps you prepare for the DMV salesperson practice test with questions on dealer laws, paperwork, and real sales scenarios. Get instant feedback, clear explanations, and see where to focus before exam day. If you're brushing up on driving knowledge too, try the dmv 100 question test and our traffic signs practice test, or study in Spanish with the NJ permit practice test español.

Which federal rule requires a window sticker on used cars disclosing warranty status and major mechanical systems coverage?
Truth in Lending Act (TILA)
Gramm-Leach-Bliley Act (GLBA)
Equal Credit Opportunity Act (ECOA)
FTC Used Car Rule (Buyers Guide) [Explanation: The FTC Used Car Rule mandates the Buyers Guide on used vehicles to disclose warranty status and key system coverage.]
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What is the primary purpose of a temporary operating permit issued at delivery?
Allow a buyer to drive while permanent registration and plates are processed [Explanation: TEMP permits legally allow operation until official registration is completed.]
Extend the vehicle's factory warranty
Guarantee loan approval
Reduce the sales tax rate for the buyer
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Under the Federal Odometer Act, what must be disclosed during a transfer of ownership (unless exempt)?
Service records for the last 24 months
Accident history reports
Mileage reading and whether it is actual, exceeds mechanical limits, or not actual [Explanation: Odometer disclosures include the mileage and its status to prevent fraud.]
Fuel economy ratings from EPA window sticker
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Which document typically itemizes selling price, fees, taxes, and trade payoff at the time of sale?
Buyers order or purchase agreement [Explanation: The buyers order details the financial items of the transaction.]
Privacy policy notice
Odometer disclosure statement
Power of attorney for title transfer only
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Which federal law prohibits discrimination in credit transactions based on protected characteristics?
Fair Credit Reporting Act (FCRA)
Telephone Consumer Protection Act (TCPA)
CAN-SPAM Act
Equal Credit Opportunity Act (ECOA) [Explanation: ECOA bans discrimination in any aspect of a credit transaction.]
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When demonstrating a vehicle, what is a best practice regarding insurance?
Verify dealership insurance policies and follow test drive protocols like copying license [Explanation: Dealers rely on their policies and procedures; verify license and follow protocols.]
Assume customer insurance always covers the test drive
Allow unaccompanied drives for all prospects
Disable safety systems during the drive
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What is generally required before a salesperson may negotiate or close vehicle sales on behalf of a dealer?
Completion of a factory product certification
Passing a federal exam
Membership in a trade association
Holding the appropriate salesperson license or registration as required by the state [Explanation: Licensing laws require proper salesperson licensure to act on behalf of the dealer.]
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A salesperson must not quote a payment unless which of the following is also disclosed when known?
The dealer's monthly sales goal
The vehicle's exact auction acquisition price
The customer's employment history
The total of payments and key credit terms like APR and term if quoting rate-based payments [Explanation: When quoting payments, triggering terms require disclosures such as APR, term, and total of payments.]
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Which action is generally prohibited in vehicle advertising?
Listing the stock number of the advertised unit
Using a price that is available only with undisclosed conditions [Explanation: Ads must disclose material conditions; undisclosed contingencies make an ad deceptive.]
Displaying the VIN in the ad
Advertising a sale price that includes mandatory dealer-installed accessories
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A salesperson accepts a cash deposit and places it in a desk drawer overnight. Which compliance area is implicated?
Trust/escrow handling and receipt procedures [Explanation: Deposits must be receipted and handled per dealership policy; personal retention is improper.]
Environmental regulations
Unfair labor practices
Export controls
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What does the Red Flags Rule require dealers who arrange financing to do?
Report every sale to the CFPB within 24 hours
Cap doc fees at a federal limit
Provide a free credit score to every applicant
Implement an identity theft prevention program to detect and respond to red flags [Explanation: The Red Flags Rule mandates a written program to prevent and mitigate identity theft.]
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For a trade-in with a loan balance greater than its value, how should the negative equity be handled?
Roll it into the new amount financed and disclose it clearly on the contract [Explanation: Negative equity must be accurately reflected and disclosed in the financing paperwork.]
Pay it off from salesperson commission
Exclude it from disclosures if the buyer agrees verbally
Ignore it unless the lender asks
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Which is the correct purpose of a surety bond relevant to dealership licensing?
Guarantees lender approval
Insures the buyer against collision damage
Serves as a financial guarantee against certain dealer violations causing consumer loss [Explanation: A surety bond compensates consumers or the state when the dealer violates obligations.]
Replaces the need for liability insurance
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When must a privacy notice typically be provided to a finance applicant at a dealership?
Only after the loan funds
At or before the time of sharing nonpublic personal information with nonaffiliated third parties [Explanation: GLBA requires a privacy notice before sharing NPI with nonaffiliates.]
Only if the applicant is declined
Only for cash buyers
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Which statement best describes spot delivery (yo-yo) risk management?
Destroy all unsigned copies of the contract
Never disclose the APR until funding occurs
Release the vehicle only after final lender funding or clear written conditional delivery terms [Explanation: To mitigate risk, either wait for funding or use clear, lawful conditional delivery documentation.]
Tell the customer funding is guaranteed regardless of credit
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In a cash reporting context, which payment triggers scrutiny for Form 8300 filing requirements?
Wire transfer under $1,000
Personal check for any amount
Customer credit card payment
More than $10,000 in cash or cash equivalents in a related transaction [Explanation: Dealers must file Form 8300 for cash payments over $10,000.]
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How should a salesperson handle a customer who speaks primarily in a language different from the contract language, where translation rules apply?
Provide the required translated version of the contract or disclosures as mandated [Explanation: Some jurisdictions require translation if negotiations occur in another language.]
Proceed without translation
Rely on a smartphone app without review
Ask a family member to sign instead
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Which financing practice helps reduce fair lending risk?
Using a documented, uniform pricing policy for rate markups and offering rate quotes consistently [Explanation: Consistent, documented policies mitigate disparate treatment risk.]
Changing terms for friends and family
Setting discretionary markups with no caps or documentation
Quoting different rates based on perceived income only
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Which statement about test drive consent for telematics or GPS tracking is correct?
No disclosure needed for any tracking
Track family members after the sale
Sell the data without notice
Disclose any tracking to the customer and use it only for legitimate business purposes [Explanation: Transparency about tracking mitigates privacy concerns and legal risk.]
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If a vehicle is subject to a safety recall with no remedy available, what should the salesperson do?
Disclose the recall status and follow dealership policy and law on sale eligibility [Explanation: Disclose material safety recalls and comply with sale restrictions.]
Disable the recall notice light
Conceal the recall to avoid losing the deal
Promise free fuel instead
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Study Outcomes

  1. Analyze Key DMV Salesperson Test Concepts -

    Break down core topics from the dmv salesperson test, including sales procedures and regulations, to ensure a solid understanding of fundamental principles.

  2. Identify Knowledge Gaps -

    Use the dmv salesperson practice test results to pinpoint strengths and weaknesses in your motor vehicle salesperson license knowledge for targeted study.

  3. Apply Proven Test-Taking Strategies -

    Learn effective approaches to tackle multiple-choice questions on the salesperson test dmv, improving accuracy and time management during the real exam.

  4. Interpret Instant Feedback -

    Review detailed quiz explanations to understand why answers are correct or incorrect, reinforcing learning and correcting misconceptions in real time.

  5. Build Confidence for Any State Exam -

    Gain the assurance needed to succeed on the salesperson license VA practice test or other state versions by mastering common question formats and topics.

  6. Simulate Real Exam Conditions -

    Experience a realistic, scored practice environment that mirrors the dmv sales license practice test, preparing you mentally and strategically for test day.

Cheat Sheet

  1. License Classification & Renewal Requirements -

    Review the distinctions between a full dealer license and a salesperson license, including age, background check, and bond requirements as outlined by the Virginia DMV and other state agencies. Remember that your salesperson license in Virginia must be renewed biennially; use the acronym "R.A.B." (Renewal, Application, Bond) to recall these steps. Check the official DMV salesperson practice test outline to confirm prerequisites and deadlines.

  2. State & Federal Regulatory Compliance -

    Understand key statutes like the Virginia Deceptive Trade Practices Act and federal Truth in Lending Act, as referenced by the FTC (ftc.gov) and VA Code § 59.1-200. Use the mnemonic "LEADS" (Licenses, Ethics, Advertising, Disclosures, Sales) to ensure you cover every compliance area. Questions on the salesperson test DMV often quiz on required disclosures and cooling-off periods.

  3. Sales Tax & Fee Calculations -

    Master the formula "Tax Due = Sale Price × Tax Rate" and add titling and license fees per your state's DMV fee schedule. For example, $20,000 × 4.15% = $830 in sales tax; then include standard title fee (e.g., $40) for a total of $870. Remember the rhyme "Tax Your Max" to prompt you to multiply before adding flat fees on the dmv sales license practice test.

  4. Financing Terms & Dealer Reserve -

    Learn how APR, term length, and dealer reserve interact: if a lender's buy rate is 3% and you add a 2% dealer reserve, the customer's APR becomes 5%. Refer to IRS Publication 334 and NADA guides for sample amortization schedules and reserve disclosures. The formula "APR + R = Total Cost" will help you tackle related questions on the salesperson license VA practice test.

  5. Documentation & Recordkeeping Requirements -

    Familiarize yourself with retention rules: maintain sales contracts for at least 3 years, title transfer documents for 2 years, and any dispute records for 1 year, per VA Code § 46.2-1536 and FTC recordkeeping guidelines. Use the "3-2-1" memory trick to recall durations when answering dmv salesperson practice test scenarios. Proper recordkeeping is a frequent focus on the dmv salesperson test.

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