STATE OF COLORADO SALES LICENSE
EXAMINATION TEST 2026 COMPLETE
QUESTIONS AND SOLUTIONS
◉ Which of the following statements is true regarding dealer demo
plates? Answer: a demo drive cannot exceed 7 days
◉ Colorado Lemon Law includes: Answer: defects that substantially
impair the market value of the vehicle
◉ Motor vehicle insurance is required: Answer: for all registered
vehicles intended for use on colorado roads
◉ Which is true regarding in-transit plates? Answer: in-transit
plates may be used to transport vehicles from point of purchase to
point of storage or from point of storage to point of sale
◉ Licensed dealers may sell which of the following on Sundays?
Answer: The selling of boat trailers and snowmobile are exempt
◉ Which of the following steps are required to properly and legally
repossess a motor vehicle? Answer: effect a lien creating a security
interest, Allow the required payment to default (become at least 10
,days late), send or hand deliver a "right to cure" letter to the debtor
and allow the debtor 20 days to cure
◉ 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
EXAMINATION TEST 2026 COMPLETE
QUESTIONS AND SOLUTIONS
◉ Which of the following statements is true regarding dealer demo
plates? Answer: a demo drive cannot exceed 7 days
◉ Colorado Lemon Law includes: Answer: defects that substantially
impair the market value of the vehicle
◉ Motor vehicle insurance is required: Answer: for all registered
vehicles intended for use on colorado roads
◉ Which is true regarding in-transit plates? Answer: in-transit
plates may be used to transport vehicles from point of purchase to
point of storage or from point of storage to point of sale
◉ Licensed dealers may sell which of the following on Sundays?
Answer: The selling of boat trailers and snowmobile are exempt
◉ Which of the following steps are required to properly and legally
repossess a motor vehicle? Answer: effect a lien creating a security
interest, Allow the required payment to default (become at least 10
,days late), send or hand deliver a "right to cure" letter to the debtor
and allow the debtor 20 days to cure
◉ 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
