STATE OF COLORADO SALES LICENSE
TEST EXAM 2025 QUESTIONS AND
ANSWERS
Three of the following types of motor vehicles are exempt from the truth in mileage act. -
ANS ~Vehicles 10 years old or older~Vehicles having a gross empty weight more than 10,000
lbs~Vehicles not self propelled (Trailers)
The definition of a used motor vehicle dealer or used dealer includes which of the following? -
ANS a person who attempts to negotiate a sale or lease of a used motor vehicle or
powersports vehicle with the intent to make a profit or gain
The Motor Vehicle Board is authorized and empowered to: - ANS All Of The Above
~Amend and repeal rules, regulations and previsions
When advertising a specific number of motor vehicles, that same number of vehicles must be
invoiced to the dealer - ANS TRUE
bait and switch is - ANS ad that attracts consumers with a low-priced product, then tries to
sell them a higher-priced product
Selling, Leasing, Trade-In, with option to purchase, offering or negotiating and exchange of
interest in 3+ vehicles in any 1 year is prima facie evidence that a person is engaged in the
business of selling or leasing motor vehicles - ANS TRUE
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, By obtaining an off-premise permit, dealers may sell motor vehicles at another location on
Sunday - ANS FALSE - NO Sale of vehicle should be done on Sundays
Which of the following statements is true regarding dealer demo plates? - ANS a demo drive
cannot exceed 7 days
Colorado Lemon Law includes: - ANS defects that substantially impair the market value of
the vehicle
Motor vehicle insurance is required: - ANS for all registered vehicles intended for use on
colorado roads
Which is true regarding in-transit plates? - ANS in-transit plates may be used to transport
vehicles from point of purchase to point of storage or from point of storage to point of sale
Licensed dealers may sell which of the following on Sundays? - ANS The selling of boat
trailers and snowmobile are exempt
Which of the following steps are required to properly and legally repossess a motor vehicle? -
ANS effect a lien creating a security interest, Allow the required payment to default (become
at least 10 days late), send or hand deliver a "right to cure" letter to the debtor and allow the
debtor 20 days to cure
An advertisement may include - ANS licensed name with the word DEALER
which of the following is a used vehicle? - ANS any vehicle that has been previously bought a
demo vehicle with 1500 miles
Which of the following are deceptive trade practices? - ANS All of the above
Bait and switch
2 Copyright ©BRIGHSTARS ALL RIGHTS RESERVED 2025
TEST EXAM 2025 QUESTIONS AND
ANSWERS
Three of the following types of motor vehicles are exempt from the truth in mileage act. -
ANS ~Vehicles 10 years old or older~Vehicles having a gross empty weight more than 10,000
lbs~Vehicles not self propelled (Trailers)
The definition of a used motor vehicle dealer or used dealer includes which of the following? -
ANS a person who attempts to negotiate a sale or lease of a used motor vehicle or
powersports vehicle with the intent to make a profit or gain
The Motor Vehicle Board is authorized and empowered to: - ANS All Of The Above
~Amend and repeal rules, regulations and previsions
When advertising a specific number of motor vehicles, that same number of vehicles must be
invoiced to the dealer - ANS TRUE
bait and switch is - ANS ad that attracts consumers with a low-priced product, then tries to
sell them a higher-priced product
Selling, Leasing, Trade-In, with option to purchase, offering or negotiating and exchange of
interest in 3+ vehicles in any 1 year is prima facie evidence that a person is engaged in the
business of selling or leasing motor vehicles - ANS TRUE
1 Copyright ©BRIGHSTARS ALL RIGHTS RESERVED 2025
, By obtaining an off-premise permit, dealers may sell motor vehicles at another location on
Sunday - ANS FALSE - NO Sale of vehicle should be done on Sundays
Which of the following statements is true regarding dealer demo plates? - ANS a demo drive
cannot exceed 7 days
Colorado Lemon Law includes: - ANS defects that substantially impair the market value of
the vehicle
Motor vehicle insurance is required: - ANS for all registered vehicles intended for use on
colorado roads
Which is true regarding in-transit plates? - ANS in-transit plates may be used to transport
vehicles from point of purchase to point of storage or from point of storage to point of sale
Licensed dealers may sell which of the following on Sundays? - ANS The selling of boat
trailers and snowmobile are exempt
Which of the following steps are required to properly and legally repossess a motor vehicle? -
ANS effect a lien creating a security interest, Allow the required payment to default (become
at least 10 days late), send or hand deliver a "right to cure" letter to the debtor and allow the
debtor 20 days to cure
An advertisement may include - ANS licensed name with the word DEALER
which of the following is a used vehicle? - ANS any vehicle that has been previously bought a
demo vehicle with 1500 miles
Which of the following are deceptive trade practices? - ANS All of the above
Bait and switch
2 Copyright ©BRIGHSTARS ALL RIGHTS RESERVED 2025
