Car Sales Test Colorado UPDATED ACTUAL Questions and CORRECT Answers
The License of a motor vehicle salesperson or a power
Advertising a salvage vehicle while identifying the vehicle
sports salesperson may be denied revoked, or suspended
as a salvage vehicle
on any of the following grounds except:
Answer- Finance Charge
Advertisement of rate of finance charge. If an advertise-
ment 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 advertise-
ment 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 conspic-
uously than, the annual percentage
The advertise price of a motor vehicle must include:
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 deal- a dealer shall clearly indicate on the customer contract
ers and buyers 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
,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 Dis-
closure; 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 evi-
dence acceptable to the
Department of the location of the title or the MCO. The
dealer's or wholesaler's right to
ownership shall be clear from such evidence. The title or
MCO must be procured by the
dealer or wholesaler upon the sale and delivery of the
vehicle and delivered or mailed to
the purchaser or chattel mortgage company within thirty
(30) days pursuant to 42-6-
112, C.R.S.
f. Vehicles with incomplete or insuflcient titles shall be
marked "Not for Sale" and
withheld from any public offering.
Satisfactory Evidence of Vehicle Ownership 2.1 The De-
partment may accept the following documents as evi-
The License of a motor vehicle salesperson or a power
Advertising a salvage vehicle while identifying the vehicle
sports salesperson may be denied revoked, or suspended
as a salvage vehicle
on any of the following grounds except:
Answer- Finance Charge
Advertisement of rate of finance charge. If an advertise-
ment 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 advertise-
ment 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 conspic-
uously than, the annual percentage
The advertise price of a motor vehicle must include:
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 deal- a dealer shall clearly indicate on the customer contract
ers and buyers 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
,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 Dis-
closure; 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 evi-
dence acceptable to the
Department of the location of the title or the MCO. The
dealer's or wholesaler's right to
ownership shall be clear from such evidence. The title or
MCO must be procured by the
dealer or wholesaler upon the sale and delivery of the
vehicle and delivered or mailed to
the purchaser or chattel mortgage company within thirty
(30) days pursuant to 42-6-
112, C.R.S.
f. Vehicles with incomplete or insuflcient titles shall be
marked "Not for Sale" and
withheld from any public offering.
Satisfactory Evidence of Vehicle Ownership 2.1 The De-
partment may accept the following documents as evi-
