DMV Used Car Dealership Practice Test

The correct document that DMV issues to the new owner after a vehicle transfer is completed is a new Certificate of Title in the buyer's name. The Certificate of Title is an official document that establishes ownership of the vehicle. When the ownership of a vehicle changes hands, it is crucial for the new owner to receive an updated title that reflects their name. This serves to legally document who owns the vehicle and is necessary for various purposes, such as registering the vehicle in their name, obtaining insurance, or selling the vehicle in the future.

While a bill of sale may be generated during the sale and serves as a receipt proving the transaction took place, it is not issued by the DMV. A temporary registration document is often provided during the process of applying for a new title or registration, but it is not the final proof of ownership. The smog certificate verifies that the vehicle meets emissions standards, but it is not related to ownership transfer and does not replace the need for a Certificate of Title. Thus, the Certificate of Title is the key document that confirms and legitimizes the new owner's claim to the vehicle after transfer.