CAR CAR - Certified Automotive Recycler Vehicle Acquisition & Title Processing Questions and Answers 3

Question 1

When a recycler acquires a vehicle with a missing title, what is the typical legal process to obtain ownership in most US states?

Accepted Answer

Apply for a bonded title or go through the state's abandoned vehicle title process via the DMV

Answer

When a title is missing, recyclers must typically apply for a bonded title or complete the state's abandoned vehicle process through the DMV to establish legal ownership before processing.

Question 2

What does the ARA Code of Ethics require regarding vehicles suspected of being stolen?

Accepted Answer

Purchase them if the price offered is below market value

Answer

The ARA Code of Ethics requires members to refuse to purchase vehicles suspected of being stolen and to report them to law enforcement, upholding both legal compliance and professional ethics.

Question 3

Why do some states require a waiting period before a recycler can dismantle an acquired vehicle?

Accepted Answer

To give law enforcement time to check if the vehicle is stolen before it is dismantled and potentially unidentifiable

Answer

Mandatory waiting periods give law enforcement the opportunity to cross-check the vehicle against stolen vehicle databases before dismantling destroys physical evidence and makes recovery impossible.

Question 4

What record-keeping obligations do recyclers have under NMVTIS for vehicles they acquire?

Accepted Answer

Maintain records of each acquired vehicle including VIN, acquisition date, and source for the regulatory minimum retention period

Answer

NMVTIS requires recyclers to maintain records for each acquired vehicle — including VIN, acquisition date, and source — for a minimum retention period to support law enforcement and prevent fraud.

Question 5

Which of the following best describes due diligence when purchasing a vehicle for recycling?

Accepted Answer

Running the VIN through NMVTIS and a stolen vehicle database before completing the purchase

Answer

Due diligence requires running the VIN through NMVTIS and a stolen vehicle database before purchase to ensure the recycler does not unknowingly acquire a stolen vehicle.

(CAR) Certified Automotive Recycler Practice Test

(CAR) Certified Automotive Recycler Practice Test

CAR CAR - Certified Automotive Recycler Vehicle Acquisition & Title Processing Questions and Answers 3