CAR SALES UPDATED ACTUAL EXAM QUESTIONS CORRECT ANSWERS GRADED A PLUS
CAR Sales EXAM 2026/2027 Paper Solutions Graded
PLUS Questions and Answers Verified Solutions
Latest Update
Question:
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:
Question:
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
Question:
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: 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
Question:
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
Question:
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:
Question:
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
Answer:
Motor vehicle and power sports salesperson are required to have a surety bond in the amount of
,Question:
Cannot find in study guides or online. educated guess. False?
Answer:
If there are no remaining reassignments on the back of the title the dealer can complete a Statement
of Fact to reassign the title.
Question:
"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 Auto Industry DivisionStudy Guide- Motor Vehicle Regulations
REGULATION 12-6-102(13) which have been used by a dealer prior to thei
Answer:
Question:
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- Answer: an off premises permit:
, Question:
all the above
Answer:
Which of the following persons are required by federal law, to adhere to the Truth in Mileage Act?
Question:
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;
Answer:
A customer's trade-in on a financed deal may be sold
Question:
A fine up to $10,000 that shall not exceed ten thousand dollars for each separate offense by any
licensee, or vacate the fine imposed by the judge or hearing officer; except that, for powersports
vehicle dealers who sell primarily vehicles that weigh under one thousand five hundred pounds, the
fine for each separate offense shall not exceed one thousand dollars; and
Answer:
if a motor vehicle salesperson selling primarily vehicles 1,500 lbs or more is found guilty of a
violation of law by the Motor Vehicle Board they may recieve:
Question:
1) The amount of cash is more than $10,000 2) The business receives the cash as: 1) The
establishment receives the cash in the ordinary course of a trade or business 2) The same agent or
buyer provides the cash3) The business receives the cash in a single transaction or in related
transactions Example: Dave bought a new car and sold his old one for $11,000. The buyer paid
Dave in cash. Since Dave is not in the trade or business of selling cars, he would not be required to
report the receipt of cash exceeding $10,000 from the sale of the car. Example: Jane operates a
jewelry store in Puerto Rico and received payment in cash on a sale of jewelry for $12,000. She will
CAR Sales EXAM 2026/2027 Paper Solutions Graded
PLUS Questions and Answers Verified Solutions
Latest Update
Question:
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:
Question:
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
Question:
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: 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
Question:
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
Question:
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:
Question:
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
Answer:
Motor vehicle and power sports salesperson are required to have a surety bond in the amount of
,Question:
Cannot find in study guides or online. educated guess. False?
Answer:
If there are no remaining reassignments on the back of the title the dealer can complete a Statement
of Fact to reassign the title.
Question:
"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 Auto Industry DivisionStudy Guide- Motor Vehicle Regulations
REGULATION 12-6-102(13) which have been used by a dealer prior to thei
Answer:
Question:
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- Answer: an off premises permit:
, Question:
all the above
Answer:
Which of the following persons are required by federal law, to adhere to the Truth in Mileage Act?
Question:
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;
Answer:
A customer's trade-in on a financed deal may be sold
Question:
A fine up to $10,000 that shall not exceed ten thousand dollars for each separate offense by any
licensee, or vacate the fine imposed by the judge or hearing officer; except that, for powersports
vehicle dealers who sell primarily vehicles that weigh under one thousand five hundred pounds, the
fine for each separate offense shall not exceed one thousand dollars; and
Answer:
if a motor vehicle salesperson selling primarily vehicles 1,500 lbs or more is found guilty of a
violation of law by the Motor Vehicle Board they may recieve:
Question:
1) The amount of cash is more than $10,000 2) The business receives the cash as: 1) The
establishment receives the cash in the ordinary course of a trade or business 2) The same agent or
buyer provides the cash3) The business receives the cash in a single transaction or in related
transactions Example: Dave bought a new car and sold his old one for $11,000. The buyer paid
Dave in cash. Since Dave is not in the trade or business of selling cars, he would not be required to
report the receipt of cash exceeding $10,000 from the sale of the car. Example: Jane operates a
jewelry store in Puerto Rico and received payment in cash on a sale of jewelry for $12,000. She will
