STATE OF COLORADO SALES LICENSE EXAM
PAPER 2026 QUESTIONS WITH VERIFIED
ANSWERS
◉ 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
,◉ Three of the following are required when a dealer is advertising a
lease of a motor vehicle with a payment amount Answer: ~Amount
or percentage of the down payment
~terms of repayment (car payment date)
~Annual percentage rate (interest rate of the loan)
◉ which is NOT required when advertising a lease? Answer:
disclosing the cost of lease vs purchasing
◉ Prominently and conspicuously display the ________? Answer: FTC
Buyer's Guide
◉ A temp registration permit may be issued: Answer: -for 60 days in
a B2C sale-for 7 days in a B2B sale
◉ Motor Vehicle salesmen are required to have a surety bond in the
amount of $30k Answer: False, $15,000
◉ If a salesperson leaves a dealership during the licensing year and
becomes employed at another dealership they must acquire a new
license for the unexpired portion of their returned license from the
board Answer: TRUE
, ◉ A Motor Vehicle salesperson may work for more than 1 dealership
during one year Answer: TRUE
◉ All Motor Vehicle dealers and dealers must post a clear legible
sign on their place of business if: Answer: they will be open less than
40 hours per week
◉ A Motor vehicle salesman can be personally liable for any proven
claim or judgement in excess of their surety bond Answer: TRUE
◉ Licensed Motor vehicle dealers Answer: must be open for
business at least three (3)days per week for a continuous period of
time
not less than four (4) hours per day between the hours of8 a.m. and
9 p.m.
◉ The license of a new or used dealer/wholesale/auctioneer/ may
be denied/suspended/revoked/fined for all the following except:
Answer: attempting to negotiate the sale or lease of a Motor vehicle
with intent to make profit or gain
◉ Federal odometer law declares it unlawful to do the following:
Answer: operate Motor vehicle on any street with intent to defraud
knowing the odometer is disconnected
PAPER 2026 QUESTIONS WITH VERIFIED
ANSWERS
◉ 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
,◉ Three of the following are required when a dealer is advertising a
lease of a motor vehicle with a payment amount Answer: ~Amount
or percentage of the down payment
~terms of repayment (car payment date)
~Annual percentage rate (interest rate of the loan)
◉ which is NOT required when advertising a lease? Answer:
disclosing the cost of lease vs purchasing
◉ Prominently and conspicuously display the ________? Answer: FTC
Buyer's Guide
◉ A temp registration permit may be issued: Answer: -for 60 days in
a B2C sale-for 7 days in a B2B sale
◉ Motor Vehicle salesmen are required to have a surety bond in the
amount of $30k Answer: False, $15,000
◉ If a salesperson leaves a dealership during the licensing year and
becomes employed at another dealership they must acquire a new
license for the unexpired portion of their returned license from the
board Answer: TRUE
, ◉ A Motor Vehicle salesperson may work for more than 1 dealership
during one year Answer: TRUE
◉ All Motor Vehicle dealers and dealers must post a clear legible
sign on their place of business if: Answer: they will be open less than
40 hours per week
◉ A Motor vehicle salesman can be personally liable for any proven
claim or judgement in excess of their surety bond Answer: TRUE
◉ Licensed Motor vehicle dealers Answer: must be open for
business at least three (3)days per week for a continuous period of
time
not less than four (4) hours per day between the hours of8 a.m. and
9 p.m.
◉ The license of a new or used dealer/wholesale/auctioneer/ may
be denied/suspended/revoked/fined for all the following except:
Answer: attempting to negotiate the sale or lease of a Motor vehicle
with intent to make profit or gain
◉ Federal odometer law declares it unlawful to do the following:
Answer: operate Motor vehicle on any street with intent to defraud
knowing the odometer is disconnected
