STATE OF COLORADO MOTOR VEHICLE DEALER BOARD MASTERY
EXAMINATION TEST 2026|2027 QUESTIONS WITH DETAILED VERIFIED
ANSWERS (100%) | ALREADY GRADED A+
Three of the following are required when a dealer is advertising a lease of a motor
vehicle with a payment amount. Which one is not required?
a. disclosing the cost of leasing versus the cost of purchasing.
b. disclosing the number, amounts and due dates or periods of scheduled payments.
c. disclosing whether or not a security deposit is required.
d. disclosing that the transaction advertised is a lease. - Correct Answer -A.
Regulation M
Then the following terms must be disclosed:
That the advertised transaction is a lease;
The total amount due prior to or at consummation or
delivery;
The number, amounts and due dates or periods of
scheduled payments;
A statement of whether or not a security deposit is
required; and
A statement that an extra charge may be imposed at
the end of the lease term where the lessee's liability,
if any, is based on the difference between the residual
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,value of the leased property
https://www.colorado.gov/pacific/sites/default/files/Dealer%20Board%20Advertising%20Rules%20D
R%202332.pdf
An advertisement would include:
a. a commercial message in a flyer
b. a commercial message in a direct mail literature
c. a price on a vehicle windshield
d. all of the above - Correct Answer -D.
Advertisement means any commercial message in any
newspaper, magazine, leaflet, flyer, or catalog, on radio,
television or public address system, in direct mail literature
or other printed material, on any interior or exterior sign
or display, in any window display, on a computer display,
or in any point-of-transaction literature or price tag
https://www.colorado.gov/pacific/sites/default/files/Dealer%20Board%20Advertising%20Rules%20D
R%202332.pdf
A new motor vehicle has three of the following characteristics. Which one
doesn't it have?
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,a. a motor vehicle being transferred for the first time from a manufacturer
b. a motor vehicle that is titled
c. a motor vehicle which has not been used and commonly known as a "new"
vehicle
d. a motor vehicle with less than 1500 demonstration miles at the franchised dealer - Correct Answer -B.
A new motor vehicle, is defined as "any motor vehicle being transferred for the first time from a
manufacturer or importer, or dealer or agent or agent of a manufacturer or importer, and which motor
vehicle has heretofore not been used, and is what is commonly known as a "new motor vehicle"." A motor
vehicle which has been used by a dealer solely for the purpose of demonstration to prospective
customers shall be considered a "new vehicle" , unless such demonstration use has been for more than
Fifteen Hundred (1500) miles.
https://www.colorado.gov/pacific/sites/default/files/JANUARY%208%20MV%20REGS%20unhighlited0
11215.pdf
Which of the following would always indicate a motor vehicle is used?
a. a vehicle with less than 1500 demonstration miles at the franchised dealer
b. a vehicle with a properly assigned Manufacturer's Certificate of Origin
c. a vehicle that is titled
d. a vehicle with a Monroney label - Correct Answer -C.
A "used motor vehicle" is defined as any motor vehicle which has been sold, bargained, exchanged,
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, given away, or the title thereto transferred from the person who first took title thereto from the
manufacturer or importer, dealer or agent of the manufacturer or importer, or so used as to have
become what is commonly known as a "secondhand motor vehicle"." In the event of transfer on the
certificate of origin, from the original franchised dealer to any other dealer or individual other than a
franchised dealer of the same make of vehicle, the vehicle shall be considered a "used" motor vehicle,
and must be titled in the new owner's name
https://www.colorado.gov/pacific/sites/default/files/JANUARY%208%20MV%20REGS%20unhighlited0
11215.pdf
Since 1985, the Federal Trade Commission's Used Car Rule has required that dealers
prominently and conspicuously display the __________________ on every used car or
light truck offered for sale. This is also known as the "as is" sticker. - Correct Answer -Buyers Guide
https://www.ftc.gov/enforcement/rules/rulemaking-regulatory-reform-proceedings/used-car-rule
Which of the following must be identified in advertising?
a. salvage vehicles
b. taxi cabs and police vehicles
c. flooded vehicles
d. all of the above - Correct Answer -D.
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EXAMINATION TEST 2026|2027 QUESTIONS WITH DETAILED VERIFIED
ANSWERS (100%) | ALREADY GRADED A+
Three of the following are required when a dealer is advertising a lease of a motor
vehicle with a payment amount. Which one is not required?
a. disclosing the cost of leasing versus the cost of purchasing.
b. disclosing the number, amounts and due dates or periods of scheduled payments.
c. disclosing whether or not a security deposit is required.
d. disclosing that the transaction advertised is a lease. - Correct Answer -A.
Regulation M
Then the following terms must be disclosed:
That the advertised transaction is a lease;
The total amount due prior to or at consummation or
delivery;
The number, amounts and due dates or periods of
scheduled payments;
A statement of whether or not a security deposit is
required; and
A statement that an extra charge may be imposed at
the end of the lease term where the lessee's liability,
if any, is based on the difference between the residual
1|Page
,value of the leased property
https://www.colorado.gov/pacific/sites/default/files/Dealer%20Board%20Advertising%20Rules%20D
R%202332.pdf
An advertisement would include:
a. a commercial message in a flyer
b. a commercial message in a direct mail literature
c. a price on a vehicle windshield
d. all of the above - Correct Answer -D.
Advertisement means any commercial message in any
newspaper, magazine, leaflet, flyer, or catalog, on radio,
television or public address system, in direct mail literature
or other printed material, on any interior or exterior sign
or display, in any window display, on a computer display,
or in any point-of-transaction literature or price tag
https://www.colorado.gov/pacific/sites/default/files/Dealer%20Board%20Advertising%20Rules%20D
R%202332.pdf
A new motor vehicle has three of the following characteristics. Which one
doesn't it have?
2|Page
,a. a motor vehicle being transferred for the first time from a manufacturer
b. a motor vehicle that is titled
c. a motor vehicle which has not been used and commonly known as a "new"
vehicle
d. a motor vehicle with less than 1500 demonstration miles at the franchised dealer - Correct Answer -B.
A new motor vehicle, is defined as "any motor vehicle being transferred for the first time from a
manufacturer or importer, or dealer or agent or agent of a manufacturer or importer, and which motor
vehicle has heretofore not been used, and is what is commonly known as a "new motor vehicle"." A motor
vehicle which has been used by a dealer solely for the purpose of demonstration to prospective
customers shall be considered a "new vehicle" , unless such demonstration use has been for more than
Fifteen Hundred (1500) miles.
https://www.colorado.gov/pacific/sites/default/files/JANUARY%208%20MV%20REGS%20unhighlited0
11215.pdf
Which of the following would always indicate a motor vehicle is used?
a. a vehicle with less than 1500 demonstration miles at the franchised dealer
b. a vehicle with a properly assigned Manufacturer's Certificate of Origin
c. a vehicle that is titled
d. a vehicle with a Monroney label - Correct Answer -C.
A "used motor vehicle" is defined as any motor vehicle which has been sold, bargained, exchanged,
3|Page
, given away, or the title thereto transferred from the person who first took title thereto from the
manufacturer or importer, dealer or agent of the manufacturer or importer, or so used as to have
become what is commonly known as a "secondhand motor vehicle"." In the event of transfer on the
certificate of origin, from the original franchised dealer to any other dealer or individual other than a
franchised dealer of the same make of vehicle, the vehicle shall be considered a "used" motor vehicle,
and must be titled in the new owner's name
https://www.colorado.gov/pacific/sites/default/files/JANUARY%208%20MV%20REGS%20unhighlited0
11215.pdf
Since 1985, the Federal Trade Commission's Used Car Rule has required that dealers
prominently and conspicuously display the __________________ on every used car or
light truck offered for sale. This is also known as the "as is" sticker. - Correct Answer -Buyers Guide
https://www.ftc.gov/enforcement/rules/rulemaking-regulatory-reform-proceedings/used-car-rule
Which of the following must be identified in advertising?
a. salvage vehicles
b. taxi cabs and police vehicles
c. flooded vehicles
d. all of the above - Correct Answer -D.
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