DMV – New Dealer Occupational License Course (CA) 6 Hour Course

2.1 The Car Buyer’s Bill of Rights (AB 68)

2.2 Vehicle Condition Forms

2.3 “Certified” Used Vehicle Advertising Rule under the Car Buyer’s Bill of Rights

2.4 Finance Charge Limits between 2% and 2.5%

2.5 Bill of Rights Kit

Section 2 Quiz: Car Buyer’s Bill of Rights

3.1 $50,000 Dealer Bond

3.2 Exceptions: $10,000 Bond

3.3 Bond Company Recommendations

3.5 E-Mail Alert System

3.7 Completing Titles for Transfer

3.8 Other Transfer Requirements

3.9 Power of Attorney

3.10 Registration Fees

3.11 Out-of-State Deliveries

3.12 Out of Country Sales

3.13 Administrative Service Fees (“ASF”)

3.14 Reports of Sale

3.15 Other DMV Registration and Miscellaneous Forms

📂 SECTION 3 Quiz : Dealer Bonds, Title and Registration Procedures

4.1 Location Requirements

4.2 Branch Locations

4.3 Off-Site Vehicle Displays

4.4 Temporary Branch Locations

Section 4 Quiz: Main & Branch Location Requirements, Off-site Displays, Temporary Branches

5.1 Auto Broker’s: Endorsement, Log, Agreement

5.2 Deposits and Refunds

5.3 Trust Account

5.4 Brokering Agreement and Fee; Licensed Retail Dealers Only

5.5 Advertising INSTRUCTOR SCRIPT: Autobrokers must comply with specific advertising rules. When advertising your brokering services, you must clearly identify yourself as a broker. You cannot advertise in a way that makes consumers believe you are selling vehicles from your own inventory when you’re actually brokering vehicles from other dealers’ inventories. Transparency is the key principle. You cannot advertise a specific vehicle at a specific price unless you have a written agreement with a selling dealer to provide that vehicle at that price. Advertising a vehicle you don’t have and can’t guarantee is misleading. If a customer responds to your ad, comes to your dealership, and you can’t deliver the advertised vehicle at the advertised price, you’ve engaged in deceptive advertising — and potentially bait-and-switch tactics, which we’ll cover in Section 9. All advertising by autobrokers must include your dealer license number and disclose that you are a broker. This applies to all advertising channels — newspaper, online, radio, television, social media, third-party listing sites. If you run an ad that says “2024 Toyota Camry — $28,000” without disclosing that you’re a broker and that the vehicle is at another dealer’s location, that’s a problem.

5.6 Consignment

5.7 Conditional Sales Contract; Requirements

Section 5 Quiz: Auto Brokers

6.1 Terms of Financing

6.2 Computing Interest Rates

6.3 A.P.R.

6.4 Computing Monthly Payments

6.5 Truth in Lending

6.6 Contract Not Executed

6.7 Breach of Conditional Sales Contract

6.8 Repossession

6.9 Foreign Language Contracts

6.10 Sales and Use Tax

Section 6 Quiz

7.1 Condition of Vehicle: Known Damage, Re-manufactured INSTRUCTOR SCRIPT: As a dealer, you have an affirmative obligation to disclose known material facts about the condition of every vehicle you sell. This isn’t just about being honest — though it is that too — it’s a legal requirement. If you know a vehicle has been in a significant accident, has frame damage, has flood damage, has been re-manufactured, or has any other material condition that would affect a reasonable buyer’s decision to purchase, you must disclose it. The key word is “known.” You must disclose what you know. Now, the question becomes: what are you expected to know? As a professional dealer, you are held to a higher standard than a private party seller. You’re expected to conduct reasonable inspections of the vehicles you sell. If a vehicle shows obvious signs of prior damage — mismatched paint, uneven panel gaps, welding marks on structural components — and you didn’t notice because you never looked, a court may find that you “should have known” and treat it the same as actual knowledge. Re-manufactured vehicles — sometimes called rebuilt or reconstructed vehicles — carry specific disclosure obligations. If a vehicle’s title is branded as salvage, rebuilt, or re-manufactured, that brand must be disclosed to the buyer in writing. Simply hoping the buyer notices the brand on the title isn’t sufficient. You must affirmatively disclose it. The disclosure should be on a separate form that the buyer signs, acknowledging that they’ve been informed of the vehicle’s title status. 💡 Real-World Example A dealer purchases a vehicle at auction that looks clean — nice paint, good interior, runs well. The dealer doesn’t run a vehicle history report. The dealer sells it to a customer, who later discovers the vehicle was declared a total loss after a flood in another state. The title was “washed” — the salvage brand was removed when the vehicle was re-titled in a state with less rigorous title branding laws. The customer sues the dealer for failure to disclose. Even though the dealer didn’t know about the flood damage, the court may find the dealer was negligent for failing to run a basic vehicle history check — something a reasonably prudent dealer would do.

7.2 Vehicle History Disclosure

7.3 Odometers

7.4 Duty to Record Mileage

7.5 Unlawful Actions

7.6 Repossessed Vehicle Odometer Disclosure

7.7 Signatures

7.8 REG 262 Form (Vehicle/Vessel Transfer Form)

7.9 Division 12 Safety Equipment

7.10 Leased Vehicles / Wholesale between Dealers

7.11 Safety Equipment List

Section 7: Quiz

8.1 Smog Requirements and Exceptions

8.2 Smog Certificate Duration

8.3 Smog Fee

8.4 Bureau of Automotive Repair (“BAR”)

8.5 Advertising; Definition, Misprints, Rules

8.6 Document Preparation Fee

8.7 Time Limits

8.8 Use of Terms

8.9 Cash vs. Credit

8.10 Buyers Guide & Foriegn Language Contracts

Section 8 Quiz

9.1 Warranties; “Lemon Law”, 18 months/18,000 miles

9.2 Disclosure Statements

9.3 Warranty Returns

9.4 Implied Warranty of; Merchantability, Fitness

9.5 Express Warranty

9.6 Dealer Plates/”Special Plates” (use of)

9.8 Vehicle Delivery

9.7 Trailers

9.9 Misuse of Plates; Illegal Uses

9.10 Duration/Expiration/Penalty/Display

9.11 Lost Plates or Stickers

9.12 Tow Dollies

9.13 Unlawful Dealer Activities

9.14 “Bait and Switch”, “Bird Dog Fees”

9.15 Fraud

9.16 DMV Enforcement Actions

Section 9 Quiz

10.1 Stolen Vehicles & Helpful Tips and Advice

10.2 Frequently Asked Questions

10.3 Corrections on Report of Sale Forms (REG 51)

10.4 “Unwind”, Void/Canceled Used Vehicle Report of Sale

10.5 Used Vehicle Rollbacks

10.6 Electronic Lien and Title (“ELT”)

10.7 Customer Demands Title

10.8 Multiple Transfers

10.9 Duplicate Title Application

10.10 Transfer of California Registration Only (Goldenrod Registration)

10.11 Transfer Only

10.12 Bonded Transfers

10.13 Non Resident Vehicle Transfers

10.14 Vehicles with Unavailable Records

10.15 Waiver of Fees and/or Penalties

10.16 Title Errors and Corrections

10.17 Temporary Operating Permit

10.18 Transporter Permit

10.19 DMV Forms

SECTION 10: Avoid Buying a Stolen Vehicle & Helpful Tips

Wrap Up