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About the exam
California DMV Vehicle Dealer License Exam
Applicants for a California used or wholesale vehicle dealer license must complete a DMV-approved dealer education course of at least four hours and then pass the DMV's written dealer examination. The exam is given by the Department of Motor Vehicles at its Occupational Licensing inspector offices, and the requirement, pass mark and subject list are set by regulation (13 CCR 268.04) and the Vehicle Code (11704.5).
The subjects are published: Vehicle Code equipment rules, advertising, odometers, licensing and registration, branch locations, off-site sales, unlawful dealer activities and the handling of DMV forms, plus warranties and the lemon law, the federal Buyers Guide, stolen vehicle checks, vehicle history disclosure, basic licensing requirements (forms, fees, bond, sign posting, renewal) and DMV enforcement.
This bank also covers the October 1, 2026 changes under the CARS Act (SB 766), which replaced the old paid two-day contract cancellation option with a free three-day right to cancel for used vehicles up to $50,000. Fee amounts are marked as of 2026 and checked against the DMV page.
Exam format
DMV Dealer License Exam: questions, time and pass mark
| Item | Official exam | Status |
|---|---|---|
| Pass mark | 70 percent | Verified Oct 2026 (13 CCR 268.04(a)) |
| Questions | Not published by DMV | Unpublished; practice test uses 40 |
| Time limit | Not published | Unpublished; practice test uses 45 minutes |
| Exam fee | $16 per attempt | Verified Oct 2026 (VC 11704.7; DMV OL 248B) |
| Retest wait | At least one week after a failed attempt | Verified Oct 2026 (13 CCR 268.04(d)) |
| Attempts | Three; after a third failure the dealer education course must be repeated | DMV Vehicle Dealer License page (read Oct 2026) |
| Application fee | $175, non-refundable | Verified Oct 2026 (DMV OL 248B) |
| Course certificate | Valid one year from the course date | DMV page (read Oct 2026) |
The practice test above draws 40 questions with a 45-minute timer and a 70% pass mark. Practice mode lets you work one topic at a time with explanations after every answer, and the cheat sheet view lists every question and answer for review.
Cost and booking
Fees, where to take it and retakes
First complete a dealer education course from a DMV-approved provider (at least four hours; providers set their own prices, commonly $100 to $200). Then take the exam at a DMV Occupational Licensing inspector office with your course certificate and a current California driver license or ID card that matches it. The exam fee is $16 for each attempt, as of 2026.
If you fail, you wait at least one week and pay $16 to retest; after a third failure you must repeat the education course. The passing exam is submitted with the dealer application package: the $175 application fee, the $50,000 surety bond (or $10,000 for wholesale-only dealers selling fewer than 25 vehicles a year, and for motorcycle and ATV dealers), a Live Scan, proof of an established place of business, and the plate and branch fees listed on the DMV fee schedule. New-vehicle dealers are exempt from the exam.
What’s covered
190+ practice questions, by topic
Written from California Vehicle Code, 13 CCR 268.04 and the DMV Vehicle Industry Registration Procedures Manual. Every explanation cites its section.
- Licensing, Bonds and Renewals40
- Report of Sale, Transfer and Odometers40
- Warranties, Buyers Guide and Cancellation Rights39
- Advertising, Prohibited Acts and Enforcement40
- Vehicle History, Smog, Equipment and Salespeople40
Why people fail
The mistakes that cost people the DMV Dealer License Exam
- Studying from a course provider's slides instead of the Vehicle Code sections the exam cites: 11713 (prohibited acts), 11713.1 (advertising), 4456 (report of sale), 5900-5902 (transfers) and the federal Buyers Guide rule.
- Not knowing the deadlines: 30 days to submit a used-vehicle registration application after sale (20 for new), 90 days for the report-of-sale form, 10 days for a transferee to forward a certificate, one week between exam attempts.
- Missing the 2026 CARS Act. The paid two-day cancellation option is gone; used vehicles up to $50,000 now carry a free three-day right to cancel with a 400-mile limit and specific notice rules.
- Confusing bond amounts, plate fees and application fees, which are deliberately similar numbers on the exam.
- Treating advertising rules as common sense. The code lists specific prohibited claims, such as free gifts contingent on purchase and prices that omit required fees.
A study plan that works
- Read Vehicle Code 11700-11740 (dealer licensing and prohibited acts) and 11713.1 (advertising) on leginfo.legislature.ca.gov. They are long but they are the exam.
- Practice here one category at a time; start with Advertising, Prohibited Acts and Enforcement, then Report of Sale, Transfer and Odometers.
- Build a numbers sheet: fees ($175, $16, $92 plate), bond amounts ($50,000 / $10,000), deadlines (30/20 days, 90 days, 10 days, one week) and the CARS Act thresholds ($50,000, 400 miles, three calendar days).
- Take a timed 40-question test and review the explanations. Star anything about warranties, the Buyers Guide or smog certification you missed.
- Before exam day, reread the DMV's Vehicle Industry Registration Procedures Manual chapters on report of sale and transfers, and re-run your starred questions.
Try a few
Sample DMV Dealer License Exam practice questions
Six questions pulled straight from the bank, with the answer shown. For the timed, no-peeking version, use the quiz above.
Why: DMV requires a one-week wait and a $16 fee after a failed attempt.
Source: DMV Vehicle Dealer License page (Exam section)
Why: VC 5902 requires a transferee to forward the endorsed certificate and transfer fee to DMV within 10 days.
Source: Veh. Code 5902
Why: Civil Code 1793 provides that a seller who gives express warranties may not limit, modify or disclaim the implied warranties.
Source: Civ. Code 1793
Why: VC 11713(p) prohibits accepting a purchase deposit unless the vehicle is at the dealer's premises or available directly from the manufacturer or distributor.
Source: VC 11713(p)
Why: VC 11812(b) requires the license to be returned and all copies used for posting or display to be destroyed by the dealer.
Source: VC 11812(b)
Why: VC 11713(v) prohibits subscriptions for features that use components already installed and function without ongoing cost. Exceptions cover navigation updates, satellite radio, roadside assistance, driver assistance and connected services.
Source: VC 11713(v)
FAQ
DMV Dealer License Exam questions, answered
How many questions are on the California dealer license exam?
DMV does not publish the question count or time limit. The regulation only sets the pass mark at 70 percent. Our practice test draws 40 questions in 45 minutes from a bank of 190+.
How much does the DMV dealer exam cost?
$16 per attempt as of 2026 (Vehicle Code 11704.7). The dealer license application fee is a separate $175, non-refundable.
What happens if I fail the dealer exam?
You must wait at least one week before retesting and pay another $16. After a third failed attempt, DMV requires you to complete the dealer education course again before testing further.
Do I need to take a course before the dealer exam?
Yes. Used and wholesale dealer applicants must complete a DMV-approved dealer education course of at least four hours; the certificate is valid for one year. New-vehicle dealers are exempt from both the course and the exam.
What does the dealer exam cover?
The subjects listed in Vehicle Code 11704.5(a) and 13 CCR 268.04(b): equipment rules, advertising, odometers, registration and licensing, branch and off-site sales, unlawful dealer acts, DMV forms, warranties and the lemon law, the Buyers Guide, stolen vehicle checks, vehicle history disclosure, bonds and fees, and DMV enforcement.
What changed for California dealers in 2026?
The CARS Act (SB 766) took effect October 1, 2026. It repealed the paid two-day contract cancellation option and gives buyers of used vehicles priced at or below $50,000 a free three-day right to cancel, subject to mileage and notice rules. Questions in this bank follow the new statute.