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Class Topics


  The following is a list of the State required subjects that are covered   in our 6-Hour Pre-license class.  If you want to become a dealer, you must take this class - It is a mandatory requirement.  

   All of our instructors are real licensed car dealers and have law degrees, and our course is presented in an easy to understand format.  

   Click here for Class Dates

   1.  California Civil Code, Chapter 2B (commencing with Section 2981) of Title 14 of Part 4 of Division 3, relating to Motor Vehicle Sales Finance

  • Conditional sales contract in writing
  • All costs and terms of payment
  • Signatures of buyer and seller
  • Copies must be furnished to buyer


2.  Motor Vehicle Financing

  • Terms of financing
  • Allowable interest rates
  • Computation of interest and conversion to Annual Percentage Rate (APR) and Computation of monthly payments


3.  Truth In Lending

  • Disclosures
  • Contract not executed
  • Breach of conditional sales contract
  • Spanish contracts
  • Dealer carrying the contract
  • Documentation Preparation Fee (DOC)


4.  Sales and Use Tax

  • Collection of Taxes
  • How to compute tax
  • What is taxable


5.  Division 12 (commencing with Section 24000), relating to equipment of vehicles

  • All safety equipment must be in compliance with Division 12
  • Clarification of what is considered Division 12 equipment
  • Division 12 safety equipment cannot be waived


6.  Advertising

  • All media methods
  • Disclosure as a dealer in all forms of advertisements
  • Vehicle identified by VIN
  • All terms of sale specified
  • Illegal use of coupons or simulated checks
  • Withdrawal of advertisement after vehicle sold
  • Honoring the advertised price when a buyer is unaware of the advertisement


7.  Odometers

  • Must be in working condition at time of sale
  • Illegal to roll back
  • Required notification when repaired
  • Odometer disclosure by legal owner of repossessed vehicle


8.  Vehicle Licensing and Registration

  • Types of California titles
  • Transfer requirements
  • Secure power of attorney
  • Signature requirements on documents
  • When registration fees required
  • Transfer fees required
  • Time requirements for transfer
  • Administrative Service Fees (ASF)
  • Out-of-state deliveries
  • Quick titles
  • Refund of excess fees


9.  Branch Locations

  • When required
  • When not required
  • Application and fees required


10.  Offsite Sales

  • Application and fees required


11.  Unlawful Dealer Activities

  • Misusing special plates, or permitting their unlawful use
  • Lending dealer supplies, and permitting misuse of license or books
  • Unlicensed location
  • Failure to pay Administrative Service fee (ASF)
  • Submission of dishonored check to the Department
  • Failure to transfer title
  • Employing unlicensed Salespersons
  • Bait and switch
  • Bird dog fees


12.  Air Pollution Control Requirements

  • Smog test required prior to a vehicle being offered for sale
  • Smog requirements when vehicle is sold at wholesale
  • Dealer allowed to charge $50 for a smog test and $8.25 for a certificate


13.  Regulations of the Bureau of Automotive Repair (BAR)

  • When a dealer must register with the BAR


14.  Handling, Completion, and Disposition of Departmental Forms

  • Report of Sale required
  • Storage and security of Reports of Sale
  • Completion of Report of Sale
  • Five day dealer notice
  • Window copy of Report of Sale
  • Submission of Report of Sale and other documents to the Department


15.  Basic Licensing Requirements of Dealers

  • Form requirements
  • Bond requirements
  • Required fees
  • Renewal requirements
  • Office requirements
  • Display requirements
  • Sign requirements
  • License posting requirements at the dealer’s place of business


16.  Use of Special Plates

  • Who can/cannot use dealer plates
  • When to use dealer plates
  • Proper placement of dealer plates


17.  Federal Buyer’s Guide

  • Federally mandated program
  • Requirements for display
  • Buyer must sign
  • Buyer receives a copy


18.  Stolen Vehicle Prevention

  • Indicia verification


19. DMV Enforcement Actions

  • Administrative
  • Criminal
  • Civil


20.  Vehicle History Disclosure Requirements

  • Condition of vehicle
  • Known damage
  • Odometer replacement
  • Vehicles which were previous rentals or taxis
  • Previous law enforcement vehicles



  • Lemon Law
  • Service Agreements


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(408) 910 - 3876

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Learn from the Best!  At Dealer Training Experts our instructor staff includes:

  • Attorneys
  • Licensed Auto Dealers
  • Finance and Insurance Experts