STATE OF COLORADO SALES LICENSE
ACTUAL EXAM PAPER 2026 QUESTIONS WITH
ANSWERS GRADED A+
◉ 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
◉ 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
ACTUAL EXAM PAPER 2026 QUESTIONS WITH
ANSWERS GRADED A+
◉ 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
◉ 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
