Car Sales Test Colorado
The License of a motor vehicle salesperson or a power sports salesperson may be denied
revoked, or suspended on any of the following grounds except: - ANS-Advertising a salvage
vehicle while identifying the vehicle as a salvage vehicle
The advertise price of a motor vehicle must include: - ANS-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 -
Triggering terms. If any of the following terms is set forth in an advertisement, the
advertisement shall meet the requirements of paragraph (d)(2) of this section:
(i)
The amount or percentage of any downpayment.
(ii)
The number of payments or period of repayment.
(iii)
The amount of any payment.
(iv)
The amount of any finance charge.
Which of the following is a true statement regarding dealers and buyers - ANS-a dealer shall
clearly indicate on the customer contract when a vehicle is sold "as-is and without a garantee
Which of the following is not proof of ownership of a motor vehicle for a Colorado dealer -
ANS-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, or chain of ownership
evidenced by the Colorado Dealer's Bill(s) of Sale for a Motor Vehicle; and,
1. The out-of-state title assigned to the dealer, wholesaler, or out-of-state title
with proper chain of ownership; and,
3. No dealer or wholesaler shall hold a MCO unless that dealer or wholesaler is
franchised to sell that specific make of vehicle as indicated on the MCO.
d. A new vehicle assigned or re-assigned with its MCO from an out-of-state franchised
dealer or wholesaler to a franchised Colorado dealer or wholesaler:
4. No dealer or wholesaler shall hold a MCO unless that dealer or wholesaler is
franchised to sell that specific make of vehicle as indicated on the MCO.
e. If a title or an MCO has been surrendered by the dealer or wholesaler to a bank or
financing organization or any other person as collateral under a Floor Plan agreement,
the dealer or wholesaler must have in its possession evidence ac
A buyers agent may: - ANS-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.
Motor vehicle and power sports salesperson are required to have a surety bond in the amount
of - ANS-15,000
Motor vehicle salesperson's bond
(1)
Before any motor vehicle salesperson's license is issued by the board through the executive
director to any applicant therefor, the applicant shall procure and file with the board evidence
of a savings account, deposit, or certificate of deposit meeting the requirements of section 11-
35-101, C.R.S., or a good and sufficient bond in the amount of fifteen thousand dollar
If there are no remaining reassignments on the back of the title the dealer can complete a
Statement of Fact to reassign the title. - ANS-Cannot find in study guides or online... educated
guess.
False?
- ANS-"used motor vehicle" is defined as any motor vehicle which has been sold, bargained,
exchanged,
given away, or the title thereto transferred from the person who first took title thereto from the
manufacturer or importer, dealer or agent of the manufacturer or importer, or so used as to have
become what is commonly known as a "secondhand motor vehicle"." In the event of transfer on
the
certificate of origin, from the original franchised dealer to any other dealer or individual other
than a
franchised dealer of the same make of vehicle, the vehicle shall be considered a "used" motor
vehicle,
and must be titled in the new owner's name. Vehicles with more Than Fifteen Hundred (1500)
miles of
demonstration use shall be considered used' vehicles. Such "demonstrators" and other motor
vehicles
3
Auto Industry DivisionStudy Guide- Motor Vehicle Regulations
REGULATION 12-6-102(13)
which have been used by a dealer prior to their sale shall be titled in the dealer's name and sold
as
"used" motor vehicles.
an off premises permit: - ANS-Right Answer- must be readily available for inspection at the sale
motor vehicle dealer may sell motor vehicles at special sales events, shows, or other organized
events, including, for example, at the National Western Stock Show, the Colorado State Fair, the
Greeley Stampede, or the Denver Auto Show. In order to sell motor vehicles at a location away
, from the dealership, a motor vehicle dealer must apply for the appropriate off-premise permit.
A motor vehicle dealer must not engage in any sales activity at an off-premise location until the
board approves the appropriate off-premise permit.
The board recognizes two classes of off-premise permit based upon specific sales-related
conditions and restrictions. These are:
Class One --- a Limited Sales Activity Off-premise Permit. The following conditions and
restrictions apply to this permit:
Licensed salespersons or owners authorized to sell must be present at the off-
premise location at all times when the public is present; and,
Licensed salespersons or owners authorized to sell may negotiate the terms of a
sale at the off-premise location; and,
4
3)
b.1)
2)
Auto Industry DivisionStudy Guide- Motor Vehicle Regulations
The parties shall not execute sales-related documents at the off-premise
location, but must return to the dealership to execute any sales-related
documents.
Class Two --- a Full Sales Activity Off-premise Permit. The following conditions and
restrictions apply to this permit:
Licensed salespersons or owners authorized to sell must be present at the off-
premise location at all times when the public is present; and,
Licensed salespersons or owners authorized to sell may negotiate the terms of a
sale at the off-premise location; and,
3) The parties may execute sales documents at the off-premise location. 4. The board issues an
off-premise permit for a restri
Which of the following persons are required by federal law, to adhere to the Truth in Mileage
Act? - ANS-all the above
A customer's trade-in on a financed deal may be sold - ANS-only when the financing as been
approved
(II)
(III)
(b)
(2)
Accepts a used vehicle as a trade-in on the purchase or lease of a motor vehicle,
used motor vehicle, powersports vehicle, or used powersports vehicle and sells
or leases the vehicle that has been traded in before the purchaser or lessee has
been approved for a consumer credit transaction as defined in section 5-1-301
(12) if the approval is a condition of the purchase or lease;
The License of a motor vehicle salesperson or a power sports salesperson may be denied
revoked, or suspended on any of the following grounds except: - ANS-Advertising a salvage
vehicle while identifying the vehicle as a salvage vehicle
The advertise price of a motor vehicle must include: - ANS-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 -
Triggering terms. If any of the following terms is set forth in an advertisement, the
advertisement shall meet the requirements of paragraph (d)(2) of this section:
(i)
The amount or percentage of any downpayment.
(ii)
The number of payments or period of repayment.
(iii)
The amount of any payment.
(iv)
The amount of any finance charge.
Which of the following is a true statement regarding dealers and buyers - ANS-a dealer shall
clearly indicate on the customer contract when a vehicle is sold "as-is and without a garantee
Which of the following is not proof of ownership of a motor vehicle for a Colorado dealer -
ANS-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, or chain of ownership
evidenced by the Colorado Dealer's Bill(s) of Sale for a Motor Vehicle; and,
1. The out-of-state title assigned to the dealer, wholesaler, or out-of-state title
with proper chain of ownership; and,
3. No dealer or wholesaler shall hold a MCO unless that dealer or wholesaler is
franchised to sell that specific make of vehicle as indicated on the MCO.
d. A new vehicle assigned or re-assigned with its MCO from an out-of-state franchised
dealer or wholesaler to a franchised Colorado dealer or wholesaler:
4. No dealer or wholesaler shall hold a MCO unless that dealer or wholesaler is
franchised to sell that specific make of vehicle as indicated on the MCO.
e. If a title or an MCO has been surrendered by the dealer or wholesaler to a bank or
financing organization or any other person as collateral under a Floor Plan agreement,
the dealer or wholesaler must have in its possession evidence ac
A buyers agent may: - ANS-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.
Motor vehicle and power sports salesperson are required to have a surety bond in the amount
of - ANS-15,000
Motor vehicle salesperson's bond
(1)
Before any motor vehicle salesperson's license is issued by the board through the executive
director to any applicant therefor, the applicant shall procure and file with the board evidence
of a savings account, deposit, or certificate of deposit meeting the requirements of section 11-
35-101, C.R.S., or a good and sufficient bond in the amount of fifteen thousand dollar
If there are no remaining reassignments on the back of the title the dealer can complete a
Statement of Fact to reassign the title. - ANS-Cannot find in study guides or online... educated
guess.
False?
- ANS-"used motor vehicle" is defined as any motor vehicle which has been sold, bargained,
exchanged,
given away, or the title thereto transferred from the person who first took title thereto from the
manufacturer or importer, dealer or agent of the manufacturer or importer, or so used as to have
become what is commonly known as a "secondhand motor vehicle"." In the event of transfer on
the
certificate of origin, from the original franchised dealer to any other dealer or individual other
than a
franchised dealer of the same make of vehicle, the vehicle shall be considered a "used" motor
vehicle,
and must be titled in the new owner's name. Vehicles with more Than Fifteen Hundred (1500)
miles of
demonstration use shall be considered used' vehicles. Such "demonstrators" and other motor
vehicles
3
Auto Industry DivisionStudy Guide- Motor Vehicle Regulations
REGULATION 12-6-102(13)
which have been used by a dealer prior to their sale shall be titled in the dealer's name and sold
as
"used" motor vehicles.
an off premises permit: - ANS-Right Answer- must be readily available for inspection at the sale
motor vehicle dealer may sell motor vehicles at special sales events, shows, or other organized
events, including, for example, at the National Western Stock Show, the Colorado State Fair, the
Greeley Stampede, or the Denver Auto Show. In order to sell motor vehicles at a location away
, from the dealership, a motor vehicle dealer must apply for the appropriate off-premise permit.
A motor vehicle dealer must not engage in any sales activity at an off-premise location until the
board approves the appropriate off-premise permit.
The board recognizes two classes of off-premise permit based upon specific sales-related
conditions and restrictions. These are:
Class One --- a Limited Sales Activity Off-premise Permit. The following conditions and
restrictions apply to this permit:
Licensed salespersons or owners authorized to sell must be present at the off-
premise location at all times when the public is present; and,
Licensed salespersons or owners authorized to sell may negotiate the terms of a
sale at the off-premise location; and,
4
3)
b.1)
2)
Auto Industry DivisionStudy Guide- Motor Vehicle Regulations
The parties shall not execute sales-related documents at the off-premise
location, but must return to the dealership to execute any sales-related
documents.
Class Two --- a Full Sales Activity Off-premise Permit. The following conditions and
restrictions apply to this permit:
Licensed salespersons or owners authorized to sell must be present at the off-
premise location at all times when the public is present; and,
Licensed salespersons or owners authorized to sell may negotiate the terms of a
sale at the off-premise location; and,
3) The parties may execute sales documents at the off-premise location. 4. The board issues an
off-premise permit for a restri
Which of the following persons are required by federal law, to adhere to the Truth in Mileage
Act? - ANS-all the above
A customer's trade-in on a financed deal may be sold - ANS-only when the financing as been
approved
(II)
(III)
(b)
(2)
Accepts a used vehicle as a trade-in on the purchase or lease of a motor vehicle,
used motor vehicle, powersports vehicle, or used powersports vehicle and sells
or leases the vehicle that has been traded in before the purchaser or lessee has
been approved for a consumer credit transaction as defined in section 5-1-301
(12) if the approval is a condition of the purchase or lease;
