Colorado Car Sales Mastery Exam Prep Document
2026/2027 | Motor Vehicle Salesperson Licensing,
Dealer Regulations & Consumer Protection | 50
Verified Questions with Detailed Rationales
Section 1: Licensing Requirements & Dealer Board Authority
1. Which of the following individuals must obtain a Colorado motor vehicle
salesperson license?
• A) A vehicle owner who occasionally sells his own car
• B) A dealer employee who negotiates sales on behalf of the dealer
• C) A customer who finances a vehicle through a bank
• D) A mechanic who performs repairs only
Rationale: Colorado law requires any person who engages in negotiations or sales
activities for a dealer to hold a salesperson license. This includes anyone who talks
price, shows cars, or completes paperwork for a dealership. Private individuals
selling their own cars are exempt .
2. The license of a motor vehicle salesperson or power-sports salesperson may
be denied, revoked, or suspended on any of the following grounds EXCEPT:
• A) Making a material misstatement on the application
• B) Advertising a salvaged vehicle while identifying the vehicle as a salvage
vehicle
• C) Failing to notify the Board of a change of address
• D) Not having a valid Colorado driver's license
,Rationale: Properly identifying a salvaged vehicle as "salvage" is actually a legal
requirement, not grounds for discipline. The other options—misstatements, failing
to update address, and lacking a valid Colorado driver's license—are all grounds
for license denial, revocation, or suspension .
3. According to Colorado law, which of the following must be licensed as a motor
vehicle dealer or powersports dealer?
• A) A person who sells only to family members
• B) A person who auctions vehicles for charitable purposes
• C) A person who sells only to other licensed dealers
• D) All of the above
Rationale: Colorado law broadly defines who must be licensed. Most commercial
sales activities require a license, including selling to other dealers (wholesaling).
Charitable auctions may have exemptions, but the general rule is that anyone
engaging in the business of selling vehicles must be licensed .
4. How many questions are on the Colorado Motor Vehicle Salesperson Mastery
Examination?
• A) 50
• B) 60
• C) 75
• D) 100
Rationale: According to the official Auto Industry Division guidelines, the Mastery
Exam consists of 60 questions. You must complete it within 90 minutes .
5. What is the required passing score for the Mastery Exam?
, • A) 75%
• B) 85%
• C) 90%
• D) 100%
Rationale: The passing score for the Colorado Mastery Exam is 85%. You need to
correctly answer at least 51 out of 60 questions .
6. How much time is allotted to complete the Mastery Exam?
• A) 60 minutes
• B) 75 minutes
• C) 90 minutes
• D) 120 minutes
Rationale: Applicants have a maximum of 90 minutes to complete the
examination. The exam will "time-out" at the end of the allowed time .
7. Is the Mastery Exam open-book or closed-book?
• A) Closed-book
• B) Open-book
• C) Partially open-book
• D) Administered orally
Rationale: The official guidelines state that the examination is open-book,
meaning you can use your notes or study guides to assist you. However, familiarity
with the material is still essential to finish within the 90-minute time limit .
2026/2027 | Motor Vehicle Salesperson Licensing,
Dealer Regulations & Consumer Protection | 50
Verified Questions with Detailed Rationales
Section 1: Licensing Requirements & Dealer Board Authority
1. Which of the following individuals must obtain a Colorado motor vehicle
salesperson license?
• A) A vehicle owner who occasionally sells his own car
• B) A dealer employee who negotiates sales on behalf of the dealer
• C) A customer who finances a vehicle through a bank
• D) A mechanic who performs repairs only
Rationale: Colorado law requires any person who engages in negotiations or sales
activities for a dealer to hold a salesperson license. This includes anyone who talks
price, shows cars, or completes paperwork for a dealership. Private individuals
selling their own cars are exempt .
2. The license of a motor vehicle salesperson or power-sports salesperson may
be denied, revoked, or suspended on any of the following grounds EXCEPT:
• A) Making a material misstatement on the application
• B) Advertising a salvaged vehicle while identifying the vehicle as a salvage
vehicle
• C) Failing to notify the Board of a change of address
• D) Not having a valid Colorado driver's license
,Rationale: Properly identifying a salvaged vehicle as "salvage" is actually a legal
requirement, not grounds for discipline. The other options—misstatements, failing
to update address, and lacking a valid Colorado driver's license—are all grounds
for license denial, revocation, or suspension .
3. According to Colorado law, which of the following must be licensed as a motor
vehicle dealer or powersports dealer?
• A) A person who sells only to family members
• B) A person who auctions vehicles for charitable purposes
• C) A person who sells only to other licensed dealers
• D) All of the above
Rationale: Colorado law broadly defines who must be licensed. Most commercial
sales activities require a license, including selling to other dealers (wholesaling).
Charitable auctions may have exemptions, but the general rule is that anyone
engaging in the business of selling vehicles must be licensed .
4. How many questions are on the Colorado Motor Vehicle Salesperson Mastery
Examination?
• A) 50
• B) 60
• C) 75
• D) 100
Rationale: According to the official Auto Industry Division guidelines, the Mastery
Exam consists of 60 questions. You must complete it within 90 minutes .
5. What is the required passing score for the Mastery Exam?
, • A) 75%
• B) 85%
• C) 90%
• D) 100%
Rationale: The passing score for the Colorado Mastery Exam is 85%. You need to
correctly answer at least 51 out of 60 questions .
6. How much time is allotted to complete the Mastery Exam?
• A) 60 minutes
• B) 75 minutes
• C) 90 minutes
• D) 120 minutes
Rationale: Applicants have a maximum of 90 minutes to complete the
examination. The exam will "time-out" at the end of the allowed time .
7. Is the Mastery Exam open-book or closed-book?
• A) Closed-book
• B) Open-book
• C) Partially open-book
• D) Administered orally
Rationale: The official guidelines state that the examination is open-book,
meaning you can use your notes or study guides to assist you. However, familiarity
with the material is still essential to finish within the 90-minute time limit .
