COLORADO CAR SALES MASTERY EXAM COMPLETE QUESTIONS
AND 100% VERIFIED ANSWERS (LATEST VERSION)
1. Q: What is the minimum age requirement to obtain a Colorado motor
vehicle dealer license? ANSWER An applicant must be at least 18 years old.
2. Q: How long is a Colorado motor vehicle dealer license valid? ANSWER
One year from the date of issuance.
3. Q: What is the deadline for renewing a Colorado dealer license?
ANSWER December 31st of each year.
4. Q: What is the penalty for operating without a valid dealer license in
Colorado? ANSWER It is a Class 2 misdemeanor punishable by fines and
potential jail time.
5. Q: How many days does a dealer have to notify the Auto Industry
Division of a change of address? ANSWER 10 days.
6. Q: What is the minimum bond amount required for a Colorado motor
vehicle dealer? ANSWER $50,000 surety bond.
7. Q: Can a dealer license be transferred to another person? ANSWER
No, dealer licenses are non-transferable.
8. Q: What is required for an established place of business in Colorado?
ANSWER A permanent enclosed building with a sign, phone, and compliance
with local zoning.
9. Q: How many vehicles must a dealer sell annually to maintain their
license? ANSWER At least 5 vehicles per year.
10. Q: What must be displayed at the dealership premises? ANSWER The
dealer license must be prominently displayed.
11. Q: What is a salesperson license in Colorado? ANSWER A license
required for anyone selling vehicles on behalf of a licensed dealer.
12. Q: How long is a salesperson license valid? ANSWER One year from
date of issuance.
,13. Q: Can a salesperson work for multiple dealers simultaneously?
ANSWER Yes, with proper licensing through each dealer.
14. Q: What is the fee for a dealer license application in Colorado?
ANSWER Approximately $600 (subject to change).
15. Q: What happens if a dealer's bond is cancelled? ANSWER The dealer
license is automatically suspended.
16. Q: How soon must a bond replacement be filed after cancellation?
ANSWER Within 30 days.
17. Q: What is a wholesale dealer license? ANSWER A license for dealers
who sell only to other licensed dealers.
18. Q: Are temporary locations permitted under a Colorado dealer license?
ANSWER Only with prior approval from the Auto Industry Division.
19. Q: What records must dealers maintain? ANSWER Purchase and sale
records for all vehicles for at least 3 years.
20. Q: Can a dealer operate from a residence? ANSWER Generally no,
unless it meets all established place of business requirements.
21. Q: What is the Colorado Motor Vehicle Dealer Board? ANSWER The
regulatory body overseeing motor vehicle dealers in Colorado.
22. Q: How many business days does a buyer have to register a purchased
vehicle? ANSWER 60 days from date of purchase.
23. Q: What must a dealer provide at the time of sale? ANSWER A
properly assigned title, bill of sale, and odometer disclosure.
24. Q: What is a dealer plate? ANSWER Special license plates issued to
dealers for demonstrating and transporting vehicles.
25. Q: How many dealer plates can a dealership obtain? ANSWER Based
on inventory size, typically 1-2 per 25 vehicles in stock.
26. Q: Can dealer plates be used for personal use? ANSWER No, only for
business purposes related to the dealership.
27. Q: What is the penalty for misuse of dealer plates? ANSWER
Suspension or revocation of dealer license and criminal charges.
28. Q: Must salespersons pass an examination? ANSWER No, but they
must complete required application and background checks.
, 29. Q: What disqualifies someone from obtaining a dealer license?
ANSWER Felony convictions, fraud, or previous license revocations.
30. Q: How long must a dealer keep customer complaint records?
ANSWER At least 2 years.
31. Q: What is required in a dealer advertisement? ANSWER The dealer's
license number and legal business name.
32. Q: Can a dealer refuse to sell a vehicle? ANSWER Yes, unless based on
protected class discrimination.
33. Q: What is a consignment sale? ANSWER When a dealer sells a vehicle
owned by someone else for a commission.
34. Q: Are consignment sales allowed in Colorado? ANSWER Yes, with
proper written agreements.
35. Q: What information must be on a buyer's order? ANSWER Vehicle
description, price, trade-in details, and all fees.
36. Q: What is the Colorado Warranty Act? ANSWER State law governing
warranties on motor vehicle sales.
37. Q: Must used cars be sold with a warranty? ANSWER No, unless
stated; most used cars are sold "as is."
38. Q: What is an "as is" sale? ANSWER A sale where the dealer provides
no warranty on the vehicle condition.
39. Q: What disclosure is required for "as is" sales? ANSWER Prominent
written disclosure that the vehicle is sold without warranty.
40. Q: What is the odometer disclosure requirement? ANSWER Federal
law requires accurate odometer reading disclosure for vehicles under 10 years
old.
41. Q: What is odometer fraud? ANSWER Tampering with or
misrepresenting a vehicle's mileage.
42. Q: What is the penalty for odometer fraud? ANSWER Federal fines up
to $10,000 and potential imprisonment.
43. Q: What is a salvage title? ANSWER A title issued for vehicles deemed a
total loss by insurance companies.
44. Q: Must salvage titles be disclosed to buyers? ANSWER Yes, absolutely
and in writing.
AND 100% VERIFIED ANSWERS (LATEST VERSION)
1. Q: What is the minimum age requirement to obtain a Colorado motor
vehicle dealer license? ANSWER An applicant must be at least 18 years old.
2. Q: How long is a Colorado motor vehicle dealer license valid? ANSWER
One year from the date of issuance.
3. Q: What is the deadline for renewing a Colorado dealer license?
ANSWER December 31st of each year.
4. Q: What is the penalty for operating without a valid dealer license in
Colorado? ANSWER It is a Class 2 misdemeanor punishable by fines and
potential jail time.
5. Q: How many days does a dealer have to notify the Auto Industry
Division of a change of address? ANSWER 10 days.
6. Q: What is the minimum bond amount required for a Colorado motor
vehicle dealer? ANSWER $50,000 surety bond.
7. Q: Can a dealer license be transferred to another person? ANSWER
No, dealer licenses are non-transferable.
8. Q: What is required for an established place of business in Colorado?
ANSWER A permanent enclosed building with a sign, phone, and compliance
with local zoning.
9. Q: How many vehicles must a dealer sell annually to maintain their
license? ANSWER At least 5 vehicles per year.
10. Q: What must be displayed at the dealership premises? ANSWER The
dealer license must be prominently displayed.
11. Q: What is a salesperson license in Colorado? ANSWER A license
required for anyone selling vehicles on behalf of a licensed dealer.
12. Q: How long is a salesperson license valid? ANSWER One year from
date of issuance.
,13. Q: Can a salesperson work for multiple dealers simultaneously?
ANSWER Yes, with proper licensing through each dealer.
14. Q: What is the fee for a dealer license application in Colorado?
ANSWER Approximately $600 (subject to change).
15. Q: What happens if a dealer's bond is cancelled? ANSWER The dealer
license is automatically suspended.
16. Q: How soon must a bond replacement be filed after cancellation?
ANSWER Within 30 days.
17. Q: What is a wholesale dealer license? ANSWER A license for dealers
who sell only to other licensed dealers.
18. Q: Are temporary locations permitted under a Colorado dealer license?
ANSWER Only with prior approval from the Auto Industry Division.
19. Q: What records must dealers maintain? ANSWER Purchase and sale
records for all vehicles for at least 3 years.
20. Q: Can a dealer operate from a residence? ANSWER Generally no,
unless it meets all established place of business requirements.
21. Q: What is the Colorado Motor Vehicle Dealer Board? ANSWER The
regulatory body overseeing motor vehicle dealers in Colorado.
22. Q: How many business days does a buyer have to register a purchased
vehicle? ANSWER 60 days from date of purchase.
23. Q: What must a dealer provide at the time of sale? ANSWER A
properly assigned title, bill of sale, and odometer disclosure.
24. Q: What is a dealer plate? ANSWER Special license plates issued to
dealers for demonstrating and transporting vehicles.
25. Q: How many dealer plates can a dealership obtain? ANSWER Based
on inventory size, typically 1-2 per 25 vehicles in stock.
26. Q: Can dealer plates be used for personal use? ANSWER No, only for
business purposes related to the dealership.
27. Q: What is the penalty for misuse of dealer plates? ANSWER
Suspension or revocation of dealer license and criminal charges.
28. Q: Must salespersons pass an examination? ANSWER No, but they
must complete required application and background checks.
, 29. Q: What disqualifies someone from obtaining a dealer license?
ANSWER Felony convictions, fraud, or previous license revocations.
30. Q: How long must a dealer keep customer complaint records?
ANSWER At least 2 years.
31. Q: What is required in a dealer advertisement? ANSWER The dealer's
license number and legal business name.
32. Q: Can a dealer refuse to sell a vehicle? ANSWER Yes, unless based on
protected class discrimination.
33. Q: What is a consignment sale? ANSWER When a dealer sells a vehicle
owned by someone else for a commission.
34. Q: Are consignment sales allowed in Colorado? ANSWER Yes, with
proper written agreements.
35. Q: What information must be on a buyer's order? ANSWER Vehicle
description, price, trade-in details, and all fees.
36. Q: What is the Colorado Warranty Act? ANSWER State law governing
warranties on motor vehicle sales.
37. Q: Must used cars be sold with a warranty? ANSWER No, unless
stated; most used cars are sold "as is."
38. Q: What is an "as is" sale? ANSWER A sale where the dealer provides
no warranty on the vehicle condition.
39. Q: What disclosure is required for "as is" sales? ANSWER Prominent
written disclosure that the vehicle is sold without warranty.
40. Q: What is the odometer disclosure requirement? ANSWER Federal
law requires accurate odometer reading disclosure for vehicles under 10 years
old.
41. Q: What is odometer fraud? ANSWER Tampering with or
misrepresenting a vehicle's mileage.
42. Q: What is the penalty for odometer fraud? ANSWER Federal fines up
to $10,000 and potential imprisonment.
43. Q: What is a salvage title? ANSWER A title issued for vehicles deemed a
total loss by insurance companies.
44. Q: Must salvage titles be disclosed to buyers? ANSWER Yes, absolutely
and in writing.
