1
State of Colorado Sales License Test Questions with
Answers (100% Correct Answers)
Three of the following types of motor vehicles are exempt from the
truth in mileage act.— Answer: ~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?— Answer: 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:— Answer:
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— Answer: TRUE
bait and switch is— Answer: ad that attracts consumers with a low-
priced product, then tries to sell them a higher-priced product
© 2025 All rights reserved
,2
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— Answer: TRUE
By obtaining an off-premise permit, dealers may sell motor vehicles at
another location on Sunday— Answer: FALSE - NO Sale of vehicle
should be done on Sundays
Which of the following statements is true regarding dealer demo
plates?— Answer: a demo drive cannot exceed 7 days
Colorado Lemon Law includes:— Answer: defects that substantially
impair the market value of the vehicle
Motor vehicle insurance is required:— Answer: for all registered
vehicles intended for use on colorado roads
Which is true regarding in-transit plates?— Answer: 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?—
Answer: The selling of boat trailers and snowmobile are exempt
© 2025 All rights reserved
, 3
Which of the following steps are required to properly and legally
repossess a motor vehicle?— Answer: 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— Answer: licensed name with the
word DEALER
which of the following is a used vehicle?— Answer: any vehicle that
has been previously bought a demo vehicle with 1500 miles
Which of the following are deceptive trade practices?— Answer: All
of the above
Bait and switch
How many temp permits may a dealer issue for each roadworthy
vehicle sold?— Answer: 1
An extension can only be issued but the DMV
Depot plates may be used during normal business hours to transport a
motor vehicle— Answer: all of the above
© 2025 All rights reserved
State of Colorado Sales License Test Questions with
Answers (100% Correct Answers)
Three of the following types of motor vehicles are exempt from the
truth in mileage act.— Answer: ~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?— Answer: 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:— Answer:
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— Answer: TRUE
bait and switch is— Answer: ad that attracts consumers with a low-
priced product, then tries to sell them a higher-priced product
© 2025 All rights reserved
,2
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— Answer: TRUE
By obtaining an off-premise permit, dealers may sell motor vehicles at
another location on Sunday— Answer: FALSE - NO Sale of vehicle
should be done on Sundays
Which of the following statements is true regarding dealer demo
plates?— Answer: a demo drive cannot exceed 7 days
Colorado Lemon Law includes:— Answer: defects that substantially
impair the market value of the vehicle
Motor vehicle insurance is required:— Answer: for all registered
vehicles intended for use on colorado roads
Which is true regarding in-transit plates?— Answer: 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?—
Answer: The selling of boat trailers and snowmobile are exempt
© 2025 All rights reserved
, 3
Which of the following steps are required to properly and legally
repossess a motor vehicle?— Answer: 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— Answer: licensed name with the
word DEALER
which of the following is a used vehicle?— Answer: any vehicle that
has been previously bought a demo vehicle with 1500 miles
Which of the following are deceptive trade practices?— Answer: All
of the above
Bait and switch
How many temp permits may a dealer issue for each roadworthy
vehicle sold?— Answer: 1
An extension can only be issued but the DMV
Depot plates may be used during normal business hours to transport a
motor vehicle— Answer: all of the above
© 2025 All rights reserved
