Questions Flashcards
Which character in the VIN denotes model year?
10th
On the title what does an N after the odometer reading mean?
It’s not the actual reading
On the title what does an E after the odometer reading mean?
Mileage in excess of odometers mechanical limits
On the title what does an A after the odometer reading mean?
Actual miles driven
What question can’t be asked on the loan application?
Are you married?
How much tax is charged for a service contract?
Retail tax on one half of the retail cost
What can and can’t internet employees do?
They may greet and set up appointments but can’t provide pricing info
How can non-inspected used vehicles be driven?
May not be driven on the highway unless it’s to an inspection station
How is the motor vehicle transaction fund funded?
By dealers and salespeople
What is the Motor Vehicle Transaction Fund?
Satisfies unpaid judgments against a dealer or salesperson that has defrauded a buyer
How long does one have to reimburse the Motor Vehicle Transaction Fund?
Within 30 days otherwise the license is automatically revoked
How can temporary transport plates be used?
To transport vehicles from auctions or other points of purchase
How long are transport plates good for?
5 days max
What’s one unfair and deceptive practice regarding the FTC used car rule?
Saying the vehicle comes with a warranty when it doesn’t
When can a dealer rent without a rental license?
It can’t
What must appear on an odometer statement for a leased vehicle?
Name of person making disclosure Mileage VIN Make Model Body type Name and address of lessee and lessor
When can a dealer’s plates be used by a customer?
When their vehicle is in the shop or when they’re considering purchasing
When can a dealer’s plates not be used by a customer?
As an occasional rental
How can a dealer sell motorcycles, trailers or motor homes?
If they have a license from the board (not DoT)
What’s the definition of a new vehicle?
Hasn’t been previously titled and has less than 7500 miles
What’s important about section C on the power of attorney form?
Must be completed by dealer as an affirmation that the information contained is correct to the best of their knowledge
When can a second set of temp tags be issued?
Title unavailable at end of first 30 days
The vehicle is titled out of state
All fees have been submitted
How much can the dealer charge for temp plates?
Only what’s required by the state and not more
what do pod plates stand for?
print on demand plates
how can the DMV punish a salesperson?
revoke license
not renew license
1000 fine for each violation
when must the reverse of the buyers guide be signed?
in the sale of any used car
when is a power of attorney used?
when the title is lost or held by a lien holder
how must finance charges be stated
as APR
what does APR stand for?
annual percentage rate
when is section b on a power of attorney used?
when a vehicle is sold prior to receiving the title
what does mileage mean in the truth in mileage act
the actual distance the vehicle has been driven
what must be disclosed under regulation z (truth in lending act)
amount financed
late fees
apr
schedule of payments
which vehicles must have a buyers guide
demos
used
consignment
but not leases
what happens if the vehicle is titled out of state and the purchaser doesn’t have insurance?
dealer must collect 1/12 of uninsured motorist fee
how can a dealer charge a processing fee?
as long as it’s clearly posted in a public area
there’s no $100 minimum
how can dealer plates be used?
on store inventory
not on courtesy vehicles
not rented to salespeople by the dealership
where should the buyers guide be placed?
in a conspicous spot so both sides can be seen
what is the uninsured motorist fee for virginia residents?
$600
when must a vehicle be inspected?
between receiving it as inventory and before it’s sold as retail
what happens with the taxes and fees for a good will substitution?
no refund is made and they must be paid again for substitution
can tags be loaned to another dealer?
neither temp nor transport tags can be loaned to another dealer
what data must be in temp registration
date of issuance
name and address of purchaser
VIN
temp plate number
if denied a loan what must the finance company do?
provide a written statement for denial within 30 days
can you change the warranty terms on a buyers guide?
can be changed and noted on original or new guide
what’re the requirements for a sales license?
can’t work for 2 dealers
names must be publicly posted
must carry it on them at all times
permission to use a dealer plate
can last 5 days and then reissued for another 5
what’s must be displayed on a used car?
the buyers guide must have both sides visible
when should the buyers guide be placed on a vehicle?
before it’s offered for sale
how long must you maintain proof of virginia safety inspection?
5 years
what does a demo mean?
it has over 750 miles and must be disclosed to buyer but can still be sold as a new vehicle
what’s the ruling on buyers guides at auction?
a buyers guide must be placed if the auction is public
what is proof of a safety inspection?
a receipt from an inspection center
a copy of the inspection given to the customer
how long do you have to submit taxes fees and application?
30 days
What is required for the dealer for a Virginia resident that doesn’t have insurance?
dealer must collect uninsured motorist fee, handle titling, and registering directly with DMV
what’s an open title?
when a title is signed by the owner leaving the buyer information blank
what’s required for a salesperson to use a dealer tag?
must work at least 25 hours per week on a regular basis and be compensated for it
when can a credit history inquiry be made?
only after the customer has signed the credit app
can a car be sold as is in Virginia?
yes
what’s required of a used car sale?
buyer must read FTC sticker and know about any remaining warranty
how can a vehicle be sold as is in Virginia?
buyers guide is signed and dated by the customer
disclosure in writing vehicle is being sold as-is
a disclosure of as-is on the buyer’s guide
full and limited are terms referring to?
warranties only not installment contracts, buyers orders, or offers of maintenance
what must be included in the buyer’s guide?
customer’s signature is the most important
what’re the penalties for violations by a salesperson?
1000 per violation
suspension of license
revocation of license
how can temporary transport place be used?
transport vehicles from auctions or other points of sale
can a salesperson pay for customer referrals?
no and will result in a penalty
how is the trade-in handled if the dealer arranges financing and the contract is rejected?
the trade-in must be returned to the customer the dealer can’t refund the cash value
what’s a posted processing fee?
collected by the dealer not the DMV and is therefore subject to tax
when is the line “balance due at settlement” used?
on a buyers order for a cash or finance contract
what happens if you do not renew your sales license by the expiration date?
you can not operate until you do there’s no grace period
what counts as an odometer disclosure?
giving the customer a copy of the title, secure reassignment, or power of attorney
what’s the anti-structuring provision of the cash reporting rule?
it prevents dealers and salespeople from advising customers on how to get around the reporting
what requires a buyers guide?
used trucks under 16000 lbs
demo vehicles
consignment vehicles
used vehicles
what must happen for a customer to go on a demo drive?
they must ride with the salesperson or carry a permission to drive slip
what’s a certificate of qualification?
a document that must be applied for prior to getting licensed
what must be done regarding warranties on used vehicles?
customers must be given a buyers guide and give them a document with certain phrases regarding the warranty, but doesn’t need to be on the buyer’s order
penalty for violating the cash reporting rule?
fine, felony, and or jail time
the FTC’s used car rule for as is
must check as is box and service contract available box
