CAR SALES TEST COLORADO
Questions and Answers
1. The License of a motor vehicle salesperson or a power sports
salesperson may be denied revoked, or suspended on any of the
following grounds except:-
: Advertising a salvage vehicle while identifying the vehicle as a salvage vehicle
2. The advertise price of a motor vehicle must include:: Answer- Finance
Charge
Advertisement of rate of finance charge. If an advertisement states a rate of finance
charge, it shall state the rate as an "annual percentage rate," using that term. If the
annual percentage rate may be increased after consummation, the advertisement shall
state that fact. If an advertisement is for credit not secured by a dwelling, the
advertisement shall not state any other rate, except that a simple annual rate or
periodic rate that is applied to an unpaid balance may be stated in conjunction with,
but not more conspicuously than, the annual percentage rate. If an advertisement is
for credit secured by a dwelling, the advertisement shall not
state any other rate, except that a simple annual rate that is applied to an unpaid
balance may be stated in conjunction with, but not more conspicuously than, the
annual percentage rate. Advertisement of terms that require additional
disclosures -
,Triggering terms. If any of the following terms is set forth in an
advertisement, the advertisement shall meet the requirements of
paragraph (d)(2) of this section:
(i)
The amount or percentage of any
downpayment. (ii)
The number of payments or period of
repayment. (iii)
The amount of any
payment. (iv)
The amount of any finance charge.
3. Which of the following is a true statement regarding dealers and
buyers: a dealer shall clearly indicate on the customer contract when a vehicle is sold "as-is
and without a guarantee
4. Which of the following is not proof of ownership of a motor
vehicle for a Colorado dealer: Answer- A vehicle subject to lien on the title
2.0 Proof of Ownership Requirements
a. A used vehicle with a Colorado title:
2.1 All Colorado dealers or wholesalers must maintain the following evidence of ownership
for each vehicle in their possession:
61
Auto Industry DivisionStudy Guide- Miscellaneous Statutes & Regulations
,2. Odometer disclosure if required.
A used vehicle with an out-of-state title:
Odometer disclosure if required; and,
Colorado Dealer's Out-of-State Vehicle Information Disclosure;
and, Colorado verification of Vehicle Identification Number.
A new vehicle assigned by MCO to a dealer or wholesaler:
MCO assigned or reassigned to a franchised dealer or wholesaler; and,
Odometer disclosure if required.
MCO reassigned to the franchised dealer or wholesaler; and,
Odometer disclosure if required; and,
Verification of vehicle identification number.
1. A Colorado title assigned to the dealer, wholesaler, or chain of ownership
evidenced by the Colorado Dealer's Bill(s) of Sale for a Motor Vehicle;
and,
1. The out-of-state title assigned to the dealer, wholesaler, or out-of-state
title with proper chain of ownership; and,
3. No dealer or wholesaler shall hold a MCO unless that dealer or
wholesaler is franchised to sell that specific make of vehicle as
indicated on the MCO.
d. A new vehicle assigned or re-assigned with its MCO from an out-of-state
franchised dealer or wholesaler to a franchised Colorado dealer or
wholesaler:
, 4. No dealer or wholesaler shall hold a MCO unless that dealer or
wholesaler is franchised to sell that specific make of vehicle as
indicated on the MCO.
e. If a title or an MCO has been surrendered by the dealer or wholesaler to a
bank or financing organization or any other person as collateral under a Floor
Plan agreement, the dealer or wholesaler must have in its possession
evidence acceptable to the Department of the location of the title or the
MCO. The dealer's or wholesaler's right to ownership shall be clear from such
evidence. The title or MCO must be procured by the dealer or wholesaler upon
the sale and delivery of the vehicle and delivered or mailed to the purchaser
or chattel mortgage company within thirty (30) days pursuant to 42-6-
112, C.R.S.
f. Vehicles with incomplete or insuflcient titles shall be marked "Not for
Sale" and withheld from any public ottering.
Satisfactory Evidence of Vehicle Ownership 2.1 The Department may accept the following documents
as evidence of vehicle ownership: a. A certificate of title issued by the State of Colorado or a Foreign
Jurisdiction transferred as provided in section 42-6-110, C.R.S.; b. A Current Registration for the vehicle
listing the applicant's name if issued by a Foreign Jurisdiction that does not issue a title for that vehicle
type; c. A bill of sale for a vehicle not previously required to be titled or registered in the State of Colorado;
d. A bill of sale for a vehicle from a Foreign Jurisdiction if the Department verifies that the jurisdiction
does not issue a title for or register that vehicle type; e. A Current Registration issued by the U.S. Armed
Services; f. A copy of a court order describing the vehicle by year, make, and Vehicle Identification Number
(VIN), and directing the Department to issue a Colorado certificate of title to the applicant, or a judgment
Questions and Answers
1. The License of a motor vehicle salesperson or a power sports
salesperson may be denied revoked, or suspended on any of the
following grounds except:-
: Advertising a salvage vehicle while identifying the vehicle as a salvage vehicle
2. The advertise price of a motor vehicle must include:: Answer- Finance
Charge
Advertisement of rate of finance charge. If an advertisement states a rate of finance
charge, it shall state the rate as an "annual percentage rate," using that term. If the
annual percentage rate may be increased after consummation, the advertisement shall
state that fact. If an advertisement is for credit not secured by a dwelling, the
advertisement shall not state any other rate, except that a simple annual rate or
periodic rate that is applied to an unpaid balance may be stated in conjunction with,
but not more conspicuously than, the annual percentage rate. If an advertisement is
for credit secured by a dwelling, the advertisement shall not
state any other rate, except that a simple annual rate that is applied to an unpaid
balance may be stated in conjunction with, but not more conspicuously than, the
annual percentage rate. Advertisement of terms that require additional
disclosures -
,Triggering terms. If any of the following terms is set forth in an
advertisement, the advertisement shall meet the requirements of
paragraph (d)(2) of this section:
(i)
The amount or percentage of any
downpayment. (ii)
The number of payments or period of
repayment. (iii)
The amount of any
payment. (iv)
The amount of any finance charge.
3. Which of the following is a true statement regarding dealers and
buyers: a dealer shall clearly indicate on the customer contract when a vehicle is sold "as-is
and without a guarantee
4. Which of the following is not proof of ownership of a motor
vehicle for a Colorado dealer: Answer- A vehicle subject to lien on the title
2.0 Proof of Ownership Requirements
a. A used vehicle with a Colorado title:
2.1 All Colorado dealers or wholesalers must maintain the following evidence of ownership
for each vehicle in their possession:
61
Auto Industry DivisionStudy Guide- Miscellaneous Statutes & Regulations
,2. Odometer disclosure if required.
A used vehicle with an out-of-state title:
Odometer disclosure if required; and,
Colorado Dealer's Out-of-State Vehicle Information Disclosure;
and, Colorado verification of Vehicle Identification Number.
A new vehicle assigned by MCO to a dealer or wholesaler:
MCO assigned or reassigned to a franchised dealer or wholesaler; and,
Odometer disclosure if required.
MCO reassigned to the franchised dealer or wholesaler; and,
Odometer disclosure if required; and,
Verification of vehicle identification number.
1. A Colorado title assigned to the dealer, wholesaler, or chain of ownership
evidenced by the Colorado Dealer's Bill(s) of Sale for a Motor Vehicle;
and,
1. The out-of-state title assigned to the dealer, wholesaler, or out-of-state
title with proper chain of ownership; and,
3. No dealer or wholesaler shall hold a MCO unless that dealer or
wholesaler is franchised to sell that specific make of vehicle as
indicated on the MCO.
d. A new vehicle assigned or re-assigned with its MCO from an out-of-state
franchised dealer or wholesaler to a franchised Colorado dealer or
wholesaler:
, 4. No dealer or wholesaler shall hold a MCO unless that dealer or
wholesaler is franchised to sell that specific make of vehicle as
indicated on the MCO.
e. If a title or an MCO has been surrendered by the dealer or wholesaler to a
bank or financing organization or any other person as collateral under a Floor
Plan agreement, the dealer or wholesaler must have in its possession
evidence acceptable to the Department of the location of the title or the
MCO. The dealer's or wholesaler's right to ownership shall be clear from such
evidence. The title or MCO must be procured by the dealer or wholesaler upon
the sale and delivery of the vehicle and delivered or mailed to the purchaser
or chattel mortgage company within thirty (30) days pursuant to 42-6-
112, C.R.S.
f. Vehicles with incomplete or insuflcient titles shall be marked "Not for
Sale" and withheld from any public ottering.
Satisfactory Evidence of Vehicle Ownership 2.1 The Department may accept the following documents
as evidence of vehicle ownership: a. A certificate of title issued by the State of Colorado or a Foreign
Jurisdiction transferred as provided in section 42-6-110, C.R.S.; b. A Current Registration for the vehicle
listing the applicant's name if issued by a Foreign Jurisdiction that does not issue a title for that vehicle
type; c. A bill of sale for a vehicle not previously required to be titled or registered in the State of Colorado;
d. A bill of sale for a vehicle from a Foreign Jurisdiction if the Department verifies that the jurisdiction
does not issue a title for or register that vehicle type; e. A Current Registration issued by the U.S. Armed
Services; f. A copy of a court order describing the vehicle by year, make, and Vehicle Identification Number
(VIN), and directing the Department to issue a Colorado certificate of title to the applicant, or a judgment
