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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. - correct 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? - correct 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: -
correct 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 -
correct answer- TRUE
bait and switch is - correct answer- ad that attracts consumers
with a low-priced product, then tries to sell them a higher-priced
product
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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 - correct answer-
TRUE
By obtaining an off-premise permit, dealers may sell motor
vehicles at another location on Sunday - correct answer-
FALSE - NO Sale of vehicle should be done on Sundays
Which of the following statements is true regarding dealer
demo plates? - correct answer- a demo drive cannot exceed 7
days
Colorado Lemon Law includes: - correct answer- defects that
substantially impair the market value of the vehicle
Motor vehicle insurance is required: - correct answer- for all
registered vehicles intended for use on colorado roads
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Which is true regarding in-transit plates? - correct 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? -
correct 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? - correct 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 - correct answer- licensed name
with the word DEALER
which of the following is a used vehicle? - correct answer- any
vehicle that has been previously bought a demo vehicle with
1500 miles
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. - correct 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? - correct 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: -
correct 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 -
correct answer- TRUE
bait and switch is - correct answer- ad that attracts consumers
with a low-priced product, then tries to sell them a higher-priced
product
,2 | Page
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 - correct answer-
TRUE
By obtaining an off-premise permit, dealers may sell motor
vehicles at another location on Sunday - correct answer-
FALSE - NO Sale of vehicle should be done on Sundays
Which of the following statements is true regarding dealer
demo plates? - correct answer- a demo drive cannot exceed 7
days
Colorado Lemon Law includes: - correct answer- defects that
substantially impair the market value of the vehicle
Motor vehicle insurance is required: - correct answer- for all
registered vehicles intended for use on colorado roads
, 3 | Page
Which is true regarding in-transit plates? - correct 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? -
correct 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? - correct 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 - correct answer- licensed name
with the word DEALER
which of the following is a used vehicle? - correct answer- any
vehicle that has been previously bought a demo vehicle with
1500 miles
