COLORADO CAR SALES MASTERY EXAM NEWEST 2024
ACTUAL EXAM 270 QUESTIONS AND CORRECT
DETAILED ANSWERS (VERIFIED ANSWERS) |ALREADY
GRADED A+
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: - ANSWER:
Advertising a salvage vehicle while identifying the vehicle as a salvage vehicle
The advertise price of a motor vehicle must include: - ANSWER: 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 - ANSWER: 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 - ANSWER: 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: - ANSWER: 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 - ANSWER: 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. - ANSWER: Cannot find in study
guides or online... educated guess.
False?
- ANSWER: "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
ACTUAL EXAM 270 QUESTIONS AND CORRECT
DETAILED ANSWERS (VERIFIED ANSWERS) |ALREADY
GRADED A+
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: - ANSWER:
Advertising a salvage vehicle while identifying the vehicle as a salvage vehicle
The advertise price of a motor vehicle must include: - ANSWER: 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 - ANSWER: 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 - ANSWER: 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: - ANSWER: 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 - ANSWER: 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. - ANSWER: Cannot find in study
guides or online... educated guess.
False?
- ANSWER: "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
