Motor Vehicle Division Vehicle Titling and Registration 4 — Questions and Answers
Question 1: When buying a vehicle from a dealership, who is typically responsible for submitting the title paperwork to the DMV?
- The buyer must submit all paperwork personally
- The dealership handles the title and registration paperwork on the buyer's behalf (Correct answer)
- The manufacturer submits paperwork directly to the DMV
- The buyer's insurance company files the title transfer
Correct answer: The dealership handles the title and registration paperwork on the buyer's behalf
Licensed dealerships are authorized to process title and registration paperwork and submit it to the DMV on behalf of the buyer.
Question 2: What is a 'lien release' and when is it needed for a vehicle title?
- Permission from the DMV to drive a vehicle with an expired registration
- A document from the lender confirming the vehicle loan has been paid in full (Correct answer)
- A court order releasing the vehicle from an impound
- A form authorizing an emissions waiver
Correct answer: A document from the lender confirming the vehicle loan has been paid in full
A lien release is issued by the lender when a vehicle loan is fully paid, allowing the owner to receive a clear title without the lienholder's name.
Question 3: What is the penalty for driving a vehicle with an expired registration?
- A verbal warning on the first offense only
- A fine and possible vehicle impoundment (Correct answer)
- Automatic license suspension
- Mandatory vehicle inspection within 24 hours
Correct answer: A fine and possible vehicle impoundment
Driving with expired registration typically results in a fine, and in some cases the vehicle may be impounded until registration is renewed.
Question 4: What is a 'rebuilt' or 'reconstructed' title?
- A title for a vehicle that was assembled from new factory parts
- A title issued after a previously salvaged vehicle has been repaired and reinspected (Correct answer)
- A title for a vehicle that has been repainted or customized
- A title transferred from another country after customs clearance
Correct answer: A title issued after a previously salvaged vehicle has been repaired and reinspected
A rebuilt or reconstructed title is issued when a salvaged vehicle has been repaired and passes a state inspection certifying it is roadworthy.
Question 5: If you sell your vehicle but fail to notify the DMV of the sale, what risk do you face?
- You may receive traffic violations or tolls incurred by the new owner (Correct answer)
- Your credit score will be negatively impacted
- Your driver's license will be automatically suspended
- You will owe the buyer a refund of the sale price
Correct answer: You may receive traffic violations or tolls incurred by the new owner
If you don't notify the DMV after selling your vehicle, you could be held responsible for tickets, tolls, or crimes committed by the new owner while the vehicle is still in your name.
Question 6: What information is NOT typically found on a vehicle registration card?
- The vehicle's license plate number
- The registered owner's name and address
- The vehicle's purchase price history (Correct answer)
- The vehicle identification number (VIN)
Correct answer: The vehicle's purchase price history
A registration card shows the owner's info, plate number, VIN, and expiration date — it does not list the vehicle's sales or purchase price history.
Question 7: Which of the following vehicles is typically exempt from title requirements in most states?
- Motorcycles over 50cc
- Older vehicles beyond a certain age, such as those made before 1975 (Correct answer)
- Commercial trucks over 10,000 lbs GVWR
- Leased vehicles
Correct answer: Older vehicles beyond a certain age, such as those made before 1975
Many states exempt older vehicles (commonly pre-1975 or pre-1980) from standard title requirements under antique or classic vehicle provisions.
Motor Vehicle Division Vehicle Titling and Registration 4
When buying a vehicle from a dealership, who is typically responsible for submitting the title paperwork to the DMV?