CAR SALES EXAM 2026 PAPER SOLUTIONS
GRADED PLUS
◉ Answer- Finance Charge
Advertisement of rate of finance charge. If an advertisement states a
rate of finance charge, it
shall state the rate as an "annual percentage rate," using that term. If
the annual percentage
rate may be increased after consummation, the advertisement shall
state that fact. If an
advertisement is for credit not secured by a dwelling, the
advertisement shall not state any
other rate, except that a simple annual rate or periodic rate that is
applied to an unpaid balance
may be stated in conjunction with, but not more conspicuously than,
the annual percentage
rate. If an advertisement is for credit secured by a dwelling, the
advertisement shall not
state any other rate, except that a simple annual rate that is applied
to an unpaid balance may
,be stated in conjunction with, but not more conspicuously than, the
annual percentage rate.
Advertisement of terms that require additional disclosures -
Tri
Answer: The advertise price of a motor vehicle must include:
◉ a dealer shall clearly indicate on the customer contract when a
vehicle is sold "as-is and without a garantee
Answer: Which of the following is a true statement regarding dealers
and buyers
◉ Answer- A vehicle subject to lien on the title
2.0 Proof of Ownership Requirements
a. A used vehicle with a Colorado title:
2.1 All Colorado dealers or wholesalers must maintain the following
evidence of ownership for each
vehicle in their possession:
61
Auto Industry DivisionStudy Guide- Miscellaneous Statutes &
Regulations
2. Odometer disclosure if required.
A used vehicle with an out-of-state title:
,Odometer disclosure if required; and,
Colorado Dealer's Out-of-State Vehicle Information Disclosure; and,
Colorado verification of Vehicle Identification Number.
A new vehicle assigned by MCO to a dealer or wholesaler:
MCO assigned or reassigned to a franchised dealer or wholesaler;
and,
Odometer disclosure if required.
MCO reassigned to the franchised dealer or wholesaler; and,
Odometer disclosure if required; and,
Verification of vehicle identification number.
1. A Colorado title assigned to the dealer, wholesaler,
Answer: Which of the following is not proof of ownership of a motor
vehicle for a Colorado dealer
◉ Right answer- retained or hired by a consumer for a fee or other
thing of value to assist, represent, or
act on behalf of the consumer in connection with the purchase or
lease of a motor
vehicle / powersport vehicle.
Wrong Answers----------
-intentionally enter into a financial agreement with a motor vehicle
salesperson for the buyer's agent benefit
, -be employed by a dealer or salesperson
-coerce a motor vehicle dealer into providing installment financing
with specified financial institution
Found in----------------------------------------
"Buyer agent" means any person required to be licensed pursuant to
this part 1 who is
retained or hired by a consumer for a fee or other thing of value to
assist, represent, or
act on behalf of the consumer in connection with the purchase or
lease of a motor
vehicle.
Answer: A buyers agent may:
◉ 15,000
Motor vehicle salesperson's bond
(1)
GRADED PLUS
◉ Answer- Finance Charge
Advertisement of rate of finance charge. If an advertisement states a
rate of finance charge, it
shall state the rate as an "annual percentage rate," using that term. If
the annual percentage
rate may be increased after consummation, the advertisement shall
state that fact. If an
advertisement is for credit not secured by a dwelling, the
advertisement shall not state any
other rate, except that a simple annual rate or periodic rate that is
applied to an unpaid balance
may be stated in conjunction with, but not more conspicuously than,
the annual percentage
rate. If an advertisement is for credit secured by a dwelling, the
advertisement shall not
state any other rate, except that a simple annual rate that is applied
to an unpaid balance may
,be stated in conjunction with, but not more conspicuously than, the
annual percentage rate.
Advertisement of terms that require additional disclosures -
Tri
Answer: The advertise price of a motor vehicle must include:
◉ a dealer shall clearly indicate on the customer contract when a
vehicle is sold "as-is and without a garantee
Answer: Which of the following is a true statement regarding dealers
and buyers
◉ Answer- A vehicle subject to lien on the title
2.0 Proof of Ownership Requirements
a. A used vehicle with a Colorado title:
2.1 All Colorado dealers or wholesalers must maintain the following
evidence of ownership for each
vehicle in their possession:
61
Auto Industry DivisionStudy Guide- Miscellaneous Statutes &
Regulations
2. Odometer disclosure if required.
A used vehicle with an out-of-state title:
,Odometer disclosure if required; and,
Colorado Dealer's Out-of-State Vehicle Information Disclosure; and,
Colorado verification of Vehicle Identification Number.
A new vehicle assigned by MCO to a dealer or wholesaler:
MCO assigned or reassigned to a franchised dealer or wholesaler;
and,
Odometer disclosure if required.
MCO reassigned to the franchised dealer or wholesaler; and,
Odometer disclosure if required; and,
Verification of vehicle identification number.
1. A Colorado title assigned to the dealer, wholesaler,
Answer: Which of the following is not proof of ownership of a motor
vehicle for a Colorado dealer
◉ Right answer- retained or hired by a consumer for a fee or other
thing of value to assist, represent, or
act on behalf of the consumer in connection with the purchase or
lease of a motor
vehicle / powersport vehicle.
Wrong Answers----------
-intentionally enter into a financial agreement with a motor vehicle
salesperson for the buyer's agent benefit
, -be employed by a dealer or salesperson
-coerce a motor vehicle dealer into providing installment financing
with specified financial institution
Found in----------------------------------------
"Buyer agent" means any person required to be licensed pursuant to
this part 1 who is
retained or hired by a consumer for a fee or other thing of value to
assist, represent, or
act on behalf of the consumer in connection with the purchase or
lease of a motor
vehicle.
Answer: A buyers agent may:
◉ 15,000
Motor vehicle salesperson's bond
(1)
