Wisconsin Motor Vehicle Salesperson Manual Practice Test

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Prepare for your Wisconsin Motor Vehicle Salesperson Exam with an engaging quiz format featuring multiple choice questions and detailed explanations. Stay ahead of the competition and ensure your success on test day!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

Which of the following is a key difference between a consignment sale and a dealer-owned vehicle sale?

Inspection process
Terms of the agreement
Sales tax rate
Warranty coverage

The correct answer is: Inspection process

A consignment sale is a type of sale in which the owner of the vehicle enters into an agreement with a dealer to sell the vehicle on their behalf. In this type of sale, the dealer takes on the responsibility of conducting an inspection of the vehicle to assess its condition and determine its value. On the other hand, in a dealer-owned vehicle sale, the dealer is the owner of the vehicle and is responsible for conducting the inspection themselves. This means that the inspection process is handled differently in these two types of sales, making A the key difference between them. Options B and C may also be factors that differ between the two types of sales, but they are not the key difference. The terms of the agreement may vary, but this can also differ within the same type of sale, as each individual agreement may be different. Similarly, the sales tax rate may vary, but it is not a defining factor between consignment and dealer-owned sales. Option D, warranty coverage, is also not the key difference between these two types of sales. While it is possible that warranty coverage may differ between the two, it is not a guaranteed difference and is not the defining factor between them.