What document proves that a dealer is the first retail owner of a new vehicle?

Study for the DMV Used Car Dealership Test. Prepare with flashcards and multiple choice questions. Each question includes hints and explanations. Get ready to ace your exam!

The Manufacturer's Certificate of Origin (MCO) is the document that serves as proof that a dealer is the first retail owner of a new vehicle. The MCO is issued by the vehicle manufacturer and includes important information such as the vehicle identification number (VIN), details about the model, and the original sale transaction. When a dealer acquires a new vehicle from the manufacturer, the MCO is transferred to them, establishing their ownership as the first retail seller.

In contrast, a sales agreement is a contract for the sale between the dealer and the buyer, detailing the terms of the purchase but not serving as proof of ownership in the same way the MCO does. A dealership license pertains to the legal authorization for a business to operate as a car dealership but does not indicate vehicle ownership. A vehicle warranty provides coverage for repairs and maintenance of a vehicle but is unrelated to proving ownership transfer. Therefore, the MCO is specifically intended to verify the dealer’s status as the initial retail owner.

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