MASTERY EXAM, CAR SALES TEST COLORADO EXAM | 250+
QUESTIONS AND VERIFIED ANSWERS | RATED A+ | 2025/2026 GUIDE
- ANSWER-1 "Depot License Plates" or "Depot Tags" - means a numbered plate issued by the
department authorizing the movement of dealership vehicles to and from the dealer's place of
business or storage for the purpose of completing work tha
- ANSWER-1) The amount of cash is more than $10,000 2) The business receives the cash as:
1) The establishment receives the cash in the ordinary course of a trade or business 2) The same
agent or buyer provides the cash3) The business receives the cash in a single transaction or in
related transactions
Example: Dave bought a new car and sold his old one for $11,000. The buyer paid Dave in cash.
Since Dave is not in the trade or business of selling cars, he would not be required to report the
receipt of cash exceeding $10,000 from the sale of the car.
Example: Jane operates a jewelry store in Puerto Rico and received payment in cash on a sale of
jewelry for $12,000. She will need to report the transaction on a Form 8300. In general, a
person engaged in a
- ANSWER-12-6-125. Advertisement - inclusion of dealer name A motor vehicle dealer or used
motor vehicle dealer or any agent of the dealers shall not advertise any offer for the sale, lease,
or purchase of a motor vehicle or a used motor vehicle that creates the false impression that
the vehicle is being offered by a private party or by a buyer's agent or that does not contain the
name of the dealer or the word "dealer" or, if the name is contained in the offer and does not
clearly reflect that the business is a dealer, both the name of the dealer and the word "dealer".
- ANSWER-12-6-302. Sunday closing No person, firm, or corporation, whether owner,
proprietor, agent, or employee, shall keep open, operate, or assist in keeping open or operating
any place or premises or residences, whether open or closed, for the purpose of selling,
bartering, or exchanging or offering for sale, barter, or exchange any motor vehicle, whether
new, used, or secondhand, on the first day of the week commonly called Sunday. This part 3
shall not apply to the opening of an establishment or place of business on the said first day of
,the week for other purposes, such as the sale of petroleum products, tires, or automobile
accessories, or for the purpose of operating and conducting a motor vehicle repair shop, or for
the purpose of supplying such services as towing or wrecking. The provisions of this part 3 shall
not apply to the opening of an establishment or place of business on the said first day of the
week for the purpose of selling, bartering, or exchanging or offering for sale, barter, or exchange
any boat, boat trailer, snowmobile, or snowmobile trailer.
- ANSWER-A "used motor vehicle" is defined as any motor vehicle which has been sold,
bargained, exchanged, 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. Vehicles with more Than Fifteen Hundred (1500) miles of demonstration use shall be
considered used' vehicles. Such "demonstrators" and other motor vehicles 3 Auto Industry
Division Study Guide- Motor Vehicle Regulations which have been used by a dealer prior to their
sale shall be titled in the dealer's name and sold as "used" motor vehicles. All vehicles which do
not qualify as "new" motor vehicles shall be deemed to be "used" motor vehicles for the
purpose of administration of this Act.
- ANSWER-A dealer may issue a second temporary registration number plate in accordance
with this subsection (3) if the dealer: (I) Has issued a temporary plate to the owner when selling
the motor vehicle to the owner; (II) Has not delivered or facilitated the delivery of the certificate
of title to the purchaser or the holder of a chattel mortgage as required in section 42-6-112 or
42-6-119 (3) within sixty days after the motor vehicle was purchased; and (III) Has taken every
reasonable action necessary to deliver or facilitate the delivery of the certificate of title.
- ANSWER-A Temporary Registration Permit is not renewable, but when circumstances outlined
in section
42-3-203(3)(d), C.R.S., are met, the Dealer may issue a second Temporary Registration Permit
pursuant to the requirements in this rule.
, - ANSWER-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. (d)
Advertisement of terms that require additional disclosures - (1) 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. (2) Additional terms. An advertisement stating any of the terms in
paragraph (d)(1) of this section shall state the following terms,49 as applicable (an example of
one or more typical extensions of credit with a statement of all the terms applicable to each
may be used): 49 [Reserved] (i) The amount or percentage of the downpayment. (ii) The terms
of repayment, which reflect the repayment obligations over the full term of the loan, including
any balloon payment. (iii) The "annual percentage rate," using that term, and, if the rate may be
increased after consummation, that fact.
- ANSWER-Advertisement of terms that require additional disclosure - (1) Triggering terms. An
advertisement that states any of the following items shall contain the disclosures required by
paragraph (d)(2) of this section, except as provided in paragraphs (e) and (f) of this section: (i)
The amount of any payment; or (ii) A statement of any capitalized cost reduction or other
payment (or that no payment is required) prior to or at consummation or by delivery, if delivery
occurs after consummation. (2) Additional terms. An advertisement stating any item listed in
paragraph (d)(1) of this section shall also state the following items: (i) That the transaction
advertised is a lease; (ii) The total amount due prior to or at consummation or by delivery, if
delivery occurs after consummation; (iii) The number, amounts, and due dates or periods of
scheduled payments under the lease; (iv) A statement of whether or not a security deposit is
required; and (v) 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 24 Auto Industry Division
Study Guide- Federal Statutes & Regulations the residual value of the leased property and its
realized value at the end of the lease term.
, - ANSWER-All motor vehicle dealers and all used motor vehicle dealers must be open for
business at least three (3) days per week for a continuous period of time not less than four (4)
hours per day between the hours of 8 a.m. and 9 p.m. Any dealership open less than forty (40)
hours a week must post a clear and legible sign on its place of business indicating the days and
hours that it is open for business. In addition such dealerships shall notify the Board in writing
of any subsequent change in such periods of time. Any dealership which will not be open for
business for a period of at least two (2) weeks must post a clear and legible sign on its place of
business indicating this fact as well as notifying the Board in writing of such fact.
- ANSWER-All the above - Right Answer
Wrong answers
Notwithstanding the requirements of §§ 580.5 and 580.7: (a) A transferor or a lessee of any of
the following motor vehicles need not disclose the vehicle's odometer mileage: (1) A vehicle
having a Gross Vehicle Weight Rating, as defined in § 571.3 of this title, of more than 16,000
pounds; (2) A vehicle that is not self-propelled; (3) A vehicle that was manufactured in a model
year beginning at least ten years before January 1 of the calendar year in which the transfer
occurs; or Example to paragraph (a)(3): For vehicle transfers occurring during calendar year
1998, model year 1988 or older vehicles are exempt. (4) A vehicle sold directly by the
manufacturer to any agency of the United States in conformity with contractual specifications.
(b) A transferor of a new vehicle prior to its first transfer for purposes other than resale need
not disclose the vehicle's odometer mileage. (c) A lessor of any of the vehicles listed in
paragraph (a) of this section need not notify the lessee of any of these vehicles of the disclosure
requirements of § 580.7.
- ANSWER-All the above - Right Answer
Wrong answers
QUESTIONS AND VERIFIED ANSWERS | RATED A+ | 2025/2026 GUIDE
- ANSWER-1 "Depot License Plates" or "Depot Tags" - means a numbered plate issued by the
department authorizing the movement of dealership vehicles to and from the dealer's place of
business or storage for the purpose of completing work tha
- ANSWER-1) The amount of cash is more than $10,000 2) The business receives the cash as:
1) The establishment receives the cash in the ordinary course of a trade or business 2) The same
agent or buyer provides the cash3) The business receives the cash in a single transaction or in
related transactions
Example: Dave bought a new car and sold his old one for $11,000. The buyer paid Dave in cash.
Since Dave is not in the trade or business of selling cars, he would not be required to report the
receipt of cash exceeding $10,000 from the sale of the car.
Example: Jane operates a jewelry store in Puerto Rico and received payment in cash on a sale of
jewelry for $12,000. She will need to report the transaction on a Form 8300. In general, a
person engaged in a
- ANSWER-12-6-125. Advertisement - inclusion of dealer name A motor vehicle dealer or used
motor vehicle dealer or any agent of the dealers shall not advertise any offer for the sale, lease,
or purchase of a motor vehicle or a used motor vehicle that creates the false impression that
the vehicle is being offered by a private party or by a buyer's agent or that does not contain the
name of the dealer or the word "dealer" or, if the name is contained in the offer and does not
clearly reflect that the business is a dealer, both the name of the dealer and the word "dealer".
- ANSWER-12-6-302. Sunday closing No person, firm, or corporation, whether owner,
proprietor, agent, or employee, shall keep open, operate, or assist in keeping open or operating
any place or premises or residences, whether open or closed, for the purpose of selling,
bartering, or exchanging or offering for sale, barter, or exchange any motor vehicle, whether
new, used, or secondhand, on the first day of the week commonly called Sunday. This part 3
shall not apply to the opening of an establishment or place of business on the said first day of
,the week for other purposes, such as the sale of petroleum products, tires, or automobile
accessories, or for the purpose of operating and conducting a motor vehicle repair shop, or for
the purpose of supplying such services as towing or wrecking. The provisions of this part 3 shall
not apply to the opening of an establishment or place of business on the said first day of the
week for the purpose of selling, bartering, or exchanging or offering for sale, barter, or exchange
any boat, boat trailer, snowmobile, or snowmobile trailer.
- ANSWER-A "used motor vehicle" is defined as any motor vehicle which has been sold,
bargained, exchanged, 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. Vehicles with more Than Fifteen Hundred (1500) miles of demonstration use shall be
considered used' vehicles. Such "demonstrators" and other motor vehicles 3 Auto Industry
Division Study Guide- Motor Vehicle Regulations which have been used by a dealer prior to their
sale shall be titled in the dealer's name and sold as "used" motor vehicles. All vehicles which do
not qualify as "new" motor vehicles shall be deemed to be "used" motor vehicles for the
purpose of administration of this Act.
- ANSWER-A dealer may issue a second temporary registration number plate in accordance
with this subsection (3) if the dealer: (I) Has issued a temporary plate to the owner when selling
the motor vehicle to the owner; (II) Has not delivered or facilitated the delivery of the certificate
of title to the purchaser or the holder of a chattel mortgage as required in section 42-6-112 or
42-6-119 (3) within sixty days after the motor vehicle was purchased; and (III) Has taken every
reasonable action necessary to deliver or facilitate the delivery of the certificate of title.
- ANSWER-A Temporary Registration Permit is not renewable, but when circumstances outlined
in section
42-3-203(3)(d), C.R.S., are met, the Dealer may issue a second Temporary Registration Permit
pursuant to the requirements in this rule.
, - ANSWER-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. (d)
Advertisement of terms that require additional disclosures - (1) 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. (2) Additional terms. An advertisement stating any of the terms in
paragraph (d)(1) of this section shall state the following terms,49 as applicable (an example of
one or more typical extensions of credit with a statement of all the terms applicable to each
may be used): 49 [Reserved] (i) The amount or percentage of the downpayment. (ii) The terms
of repayment, which reflect the repayment obligations over the full term of the loan, including
any balloon payment. (iii) The "annual percentage rate," using that term, and, if the rate may be
increased after consummation, that fact.
- ANSWER-Advertisement of terms that require additional disclosure - (1) Triggering terms. An
advertisement that states any of the following items shall contain the disclosures required by
paragraph (d)(2) of this section, except as provided in paragraphs (e) and (f) of this section: (i)
The amount of any payment; or (ii) A statement of any capitalized cost reduction or other
payment (or that no payment is required) prior to or at consummation or by delivery, if delivery
occurs after consummation. (2) Additional terms. An advertisement stating any item listed in
paragraph (d)(1) of this section shall also state the following items: (i) That the transaction
advertised is a lease; (ii) The total amount due prior to or at consummation or by delivery, if
delivery occurs after consummation; (iii) The number, amounts, and due dates or periods of
scheduled payments under the lease; (iv) A statement of whether or not a security deposit is
required; and (v) 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 24 Auto Industry Division
Study Guide- Federal Statutes & Regulations the residual value of the leased property and its
realized value at the end of the lease term.
, - ANSWER-All motor vehicle dealers and all used motor vehicle dealers must be open for
business at least three (3) days per week for a continuous period of time not less than four (4)
hours per day between the hours of 8 a.m. and 9 p.m. Any dealership open less than forty (40)
hours a week must post a clear and legible sign on its place of business indicating the days and
hours that it is open for business. In addition such dealerships shall notify the Board in writing
of any subsequent change in such periods of time. Any dealership which will not be open for
business for a period of at least two (2) weeks must post a clear and legible sign on its place of
business indicating this fact as well as notifying the Board in writing of such fact.
- ANSWER-All the above - Right Answer
Wrong answers
Notwithstanding the requirements of §§ 580.5 and 580.7: (a) A transferor or a lessee of any of
the following motor vehicles need not disclose the vehicle's odometer mileage: (1) A vehicle
having a Gross Vehicle Weight Rating, as defined in § 571.3 of this title, of more than 16,000
pounds; (2) A vehicle that is not self-propelled; (3) A vehicle that was manufactured in a model
year beginning at least ten years before January 1 of the calendar year in which the transfer
occurs; or Example to paragraph (a)(3): For vehicle transfers occurring during calendar year
1998, model year 1988 or older vehicles are exempt. (4) A vehicle sold directly by the
manufacturer to any agency of the United States in conformity with contractual specifications.
(b) A transferor of a new vehicle prior to its first transfer for purposes other than resale need
not disclose the vehicle's odometer mileage. (c) A lessor of any of the vehicles listed in
paragraph (a) of this section need not notify the lessee of any of these vehicles of the disclosure
requirements of § 580.7.
- ANSWER-All the above - Right Answer
Wrong answers
