State of Colorado Sales License Practice Test 2026 with 150
Questions and Correct Answers/ Colorado Salesperson
License Exam – Auto Industry Division Practice Test 2026
When a salesperson leaves a dealer, that dealer must do all of the following except
- ANSWER-immediately employ a new salesperson, licensed or not
The license of a motor vehicle salesperson or a powersports salesperson may be
denied, revoked, or suspended on any of the following grounds except: -
ANSWER-using point of sale literature in advertising
When a salesperson leaves a dealer, that dealer must return that salespersons
license to the Auto Industry Division. - ANSWER-False
Which of the following is not true about members of the Motor Vehicle Dealer
board? - ANSWER-public members must have been a motor vehicle dealer
The license of a new or used dealer/Wholesaler may be denied/suspended /revoked
/fined for the following - ANSWER-Making a material misstatement in an
application of a license
Motor vehicle dealers, powersports dealers, used motor vehicle dealers, used
powersports dealers, or wholesalers are not required to report to the dealer board: -
ANSWER-any change in the hours of operation of the business when the business
continues full time
On Sunday(s), dealers are prohibited from selling all of the following except? -
ANSWER-( C) Powersport Vehicles
pg. 1
,Which of the following is true regarding depot plates? - ANSWER-depot plates
may be used by a dealer to road test a vehicle after repair
A new or used motor vehicle dealer may legally do which of the following with a
temporary permit? - ANSWER-issue a permit upon the sale of a motor vehicle to
another dealer
A new motor vehicle has three of the following characteristics. Which one doesn't
it have? - ANSWER-A title
A dealer wholesaler or salespersons convicted of any felony or any crime.. Has
how many days to report conviction? - ANSWER-30 Days
The definition of a used mother vehicle dealer or used powersports 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
Wholesalers: - ANSWER-must use a name other than their personal name on all
business documents
A dealer is required to have on file the licenses of each of their employed
salespersons but need not display them in their place of business - ANSWER-
False
A dealer must take in the title in their own name before selling a car to a retail
customer - ANSWER-False
A salesperson can change dealerships during the licensing year provided that the
correct form and fee is submitted to the board such sales person may begin work as
pg. 2
, a motor vehicle salespersons or powersports salesperson while awaiting a new
license from the board - ANSWER-False
Which of the following is acceptable proof of ownership of a motor vehicle for a
Colorado dealer? - ANSWER-A vehicle subject to a lien on the tile
Records of vehicles transfers and odometer statements must be retained for: -
ANSWER-5 years
Which of the following would indicate a motor vehicle is used - ANSWER-A
certificate of title has been issued
A motor vehicle dealer is responsible for: - ANSWER-all of the above
An advertisement would include - ANSWER-All of the above
Which of the following is a deceptive trade practice? - ANSWER-All of the above
Demo plates can be displayed on vehicles that are used by the dealership for any
commercial purpose - ANSWER-True
Which of the following does not fit the definition of a motor vehicle dealer -
ANSWER-someone who sells motor vehicles solely to wholesalers
By definition an advertisement may include any commercial message on any
computer display or window, display which is delivered or made available to a
customer or prospective customer in any manner whatsoever - ANSWER-True
pg. 3
Questions and Correct Answers/ Colorado Salesperson
License Exam – Auto Industry Division Practice Test 2026
When a salesperson leaves a dealer, that dealer must do all of the following except
- ANSWER-immediately employ a new salesperson, licensed or not
The license of a motor vehicle salesperson or a powersports salesperson may be
denied, revoked, or suspended on any of the following grounds except: -
ANSWER-using point of sale literature in advertising
When a salesperson leaves a dealer, that dealer must return that salespersons
license to the Auto Industry Division. - ANSWER-False
Which of the following is not true about members of the Motor Vehicle Dealer
board? - ANSWER-public members must have been a motor vehicle dealer
The license of a new or used dealer/Wholesaler may be denied/suspended /revoked
/fined for the following - ANSWER-Making a material misstatement in an
application of a license
Motor vehicle dealers, powersports dealers, used motor vehicle dealers, used
powersports dealers, or wholesalers are not required to report to the dealer board: -
ANSWER-any change in the hours of operation of the business when the business
continues full time
On Sunday(s), dealers are prohibited from selling all of the following except? -
ANSWER-( C) Powersport Vehicles
pg. 1
,Which of the following is true regarding depot plates? - ANSWER-depot plates
may be used by a dealer to road test a vehicle after repair
A new or used motor vehicle dealer may legally do which of the following with a
temporary permit? - ANSWER-issue a permit upon the sale of a motor vehicle to
another dealer
A new motor vehicle has three of the following characteristics. Which one doesn't
it have? - ANSWER-A title
A dealer wholesaler or salespersons convicted of any felony or any crime.. Has
how many days to report conviction? - ANSWER-30 Days
The definition of a used mother vehicle dealer or used powersports 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
Wholesalers: - ANSWER-must use a name other than their personal name on all
business documents
A dealer is required to have on file the licenses of each of their employed
salespersons but need not display them in their place of business - ANSWER-
False
A dealer must take in the title in their own name before selling a car to a retail
customer - ANSWER-False
A salesperson can change dealerships during the licensing year provided that the
correct form and fee is submitted to the board such sales person may begin work as
pg. 2
, a motor vehicle salespersons or powersports salesperson while awaiting a new
license from the board - ANSWER-False
Which of the following is acceptable proof of ownership of a motor vehicle for a
Colorado dealer? - ANSWER-A vehicle subject to a lien on the tile
Records of vehicles transfers and odometer statements must be retained for: -
ANSWER-5 years
Which of the following would indicate a motor vehicle is used - ANSWER-A
certificate of title has been issued
A motor vehicle dealer is responsible for: - ANSWER-all of the above
An advertisement would include - ANSWER-All of the above
Which of the following is a deceptive trade practice? - ANSWER-All of the above
Demo plates can be displayed on vehicles that are used by the dealership for any
commercial purpose - ANSWER-True
Which of the following does not fit the definition of a motor vehicle dealer -
ANSWER-someone who sells motor vehicles solely to wholesalers
By definition an advertisement may include any commercial message on any
computer display or window, display which is delivered or made available to a
customer or prospective customer in any manner whatsoever - ANSWER-True
pg. 3
