What does a dealer need to do with registration fees after a vehicle sale?

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!

After a vehicle sale, a dealer is required to collect registration fees from the buyer and remit them to the Department of Motor Vehicles (DMV). This process involves gathering the necessary fees that are typically part of the vehicle purchase and ensuring that they are forwarded to the appropriate governmental authority for vehicle registration.

The responsibility of remitting these fees is crucial for compliance with state regulations. It ensures that the vehicle can be properly registered in the new owner's name, allowing for legal operation on public roads. This obligation is part of the dealer's role in facilitating the transfer of ownership and maintaining accurate records with the DMV.

Options that suggest using the fees for investment, returning them to the customer, or allocating them for dealership expenses do not align with the dealer's responsibilities concerning registration fees. The correct process is focused on the proper handling and forwarding of funds to the DMV to support the vehicle registration process.

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