STATE OF COLORADO SALES LICENSE TEST QUESTIONS AND ANSWERS 2025
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
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
, STATE OF COLORADO SALES LICENSE TEST QUESTIONS AND ANSWERS 2025
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
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
All plates
Three of the following are required when a dealer is advertising a lease of a motor vehicle with a
payment amount - (ANSWER)~Amount or percentage of the down payment
~terms of repayment (car payment date)
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
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
, STATE OF COLORADO SALES LICENSE TEST QUESTIONS AND ANSWERS 2025
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
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
All plates
Three of the following are required when a dealer is advertising a lease of a motor vehicle with a
payment amount - (ANSWER)~Amount or percentage of the down payment
~terms of repayment (car payment date)
