COLORADO SALES LICENSE TEST 2026
COMPREHENSIVE EXAM FULL QUESTIONS
AND ACCURATE SOLUTIONS
◉ The definition of a used motor vehicle dealer or used dealer
includes which of the following? Answer: a person who attempts to
negotiate a sale or lease of a used motor vehicle or powersports
vehicle with the intent to make a profit or gain
◉ The Motor Vehicle Board is authorized and empowered to:
Answer: All Of The Above~Amend and repeal rules, regulations and
previsions
◉ When advertising a specific number of motor vehicles, that same
number of vehicles must be invoiced to the dealer Answer: TRUE
◉ bait and switch is Answer: ad that attracts consumers with a low-
priced product, then tries to sell them a higher-priced product
◉ Selling, Leasing, Trade-In, with option to purchase, offering or
negotiating and exchange of interest in 3+ vehicles in any 1 year is
prima facie evidence that a person is engaged in the business of
selling or leasing motor vehicles Answer: TRUE
,◉ By obtaining an off-premise permit, dealers may sell motor
vehicles at another location on Sunday Answer: FALSE - NO Sale of
vehicle should be done on Sundays
◉ 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 aboveBait 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
COMPREHENSIVE EXAM FULL QUESTIONS
AND ACCURATE SOLUTIONS
◉ The definition of a used motor vehicle dealer or used dealer
includes which of the following? Answer: a person who attempts to
negotiate a sale or lease of a used motor vehicle or powersports
vehicle with the intent to make a profit or gain
◉ The Motor Vehicle Board is authorized and empowered to:
Answer: All Of The Above~Amend and repeal rules, regulations and
previsions
◉ When advertising a specific number of motor vehicles, that same
number of vehicles must be invoiced to the dealer Answer: TRUE
◉ bait and switch is Answer: ad that attracts consumers with a low-
priced product, then tries to sell them a higher-priced product
◉ Selling, Leasing, Trade-In, with option to purchase, offering or
negotiating and exchange of interest in 3+ vehicles in any 1 year is
prima facie evidence that a person is engaged in the business of
selling or leasing motor vehicles Answer: TRUE
,◉ By obtaining an off-premise permit, dealers may sell motor
vehicles at another location on Sunday Answer: FALSE - NO Sale of
vehicle should be done on Sundays
◉ 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 aboveBait 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
