Car Sales Test Colorado 2023 Questions and Answers
Complete
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:
Advertising a salvage vehicle while identifying the vehicle as a salvage vehicle
The advertise price of a motor vehicle must include:
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
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- 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 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 insufficient titles shall be marked "Not for Sale" and
withheld from any public offering.
Satisfactory Evidence of Vehicle Ownership 2.1 The Department may accept the
following documents as evidence of vehicle ownership: a. A certificate of title issued by
the State of Colorado or a Foreign Jurisdiction transferred as provided in section 42-6-
110, C.R.S.; b. A Current Registration for the vehicle listing the applicant's name if
issued by a Foreign Jurisdiction that does not issue a title for that vehicle type; c. A bill
of sale for a vehicle not previously required to be titled or registered in the State of
Colorado; d. A bill of sale for a vehicle from a Foreign Jurisdiction if the Department
verifies that the jurisdiction does not issue a title for or register that vehicle type; e. A
Current Registration issued by the U.S. Armed Services; f. A copy of a court order
describing the vehicle by year, make, and Vehicle Identification Number (VIN), and
,directing the Department to issue a Colorado certificate of title to the applicant, or a
judgment for possession obtained through a civil proceeding pursuant to section 42-6-
114, C.R.S.; g. A completed DR 2409 Statement of Assembly of Homemade Trailer and
Assignment of Trailer I.D. Number if the trailer is a homemade vehicle as defined in
section 42-5- 201(4), C.R.S.; or h. Other evidence deemed by the Department to be
satisfactory evidence of vehicle ownership. 2.2 If an applicant does not have the
Colorado certificate of title and the Colorado record has been purged, any of the
following documents listing the applicant's name, submitted together with a completed
DR 2116 Motor Vehicle Bill of Sale For a Purged Colorado Record, may be considered
satisfactory evidence of proof of vehicle ownership: a. Colorado registration; b.
Colorado registration renewal card; c. Photocopy of the Colorado certificate of title; d. A
certified copy of the Colorado motor vehicle record; or e. Other documentation deemed
by the Department to be satisfactory evidence of vehicle ownership. 2.3 Any document
provided as evidence of vehicle ownership must include the VIN, vehicle year, vehicle
make, and the applicant's name listed as the owner, buyer, or transferee. 2.4 The
Department will not accept documents that do not contain all elements required to prove
authenticity (e.g., certification, notary, acceptable transfers, assignments, etc...). 66
Auto Industry Division Study Guide- Miscellaneous Statutes & Regulations 2.5 An
applicant who cannot provide satisfactory proof of vehicle ownership documents must
satisfy all requirements set forth in section 42-6-115, C.R.S., and 1 CCR 204-10. Rule
19. Bonding for Colorado Certificate of Title.
A buyers agent may:
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
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.
Cannot find in study guides or online... educated guess.
False?
...
"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
demonstration use shall be considered used' vehicles. Such "demonstrators" and other
motor vehicles
3
Auto Industry DivisionStudy Guide- Motor Vehicle Regulations
REGULATION 12-6-102(13)
which have been used by a dealer prior to their sale shall be titled in the dealer's name
and sold as
"used" motor vehicles.
an off premises permit:
Right Answer- must be readily available for inspection at the sale
motor vehicle dealer may sell motor vehicles at special sales events, shows, or other
organized
events, including, for example, at the National Western Stock Show, the Colorado State
Fair, the
Greeley Stampede, or the Denver Auto Show. In order to sell motor vehicles at a
location away
Complete
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:
Advertising a salvage vehicle while identifying the vehicle as a salvage vehicle
The advertise price of a motor vehicle must include:
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
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- 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 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 insufficient titles shall be marked "Not for Sale" and
withheld from any public offering.
Satisfactory Evidence of Vehicle Ownership 2.1 The Department may accept the
following documents as evidence of vehicle ownership: a. A certificate of title issued by
the State of Colorado or a Foreign Jurisdiction transferred as provided in section 42-6-
110, C.R.S.; b. A Current Registration for the vehicle listing the applicant's name if
issued by a Foreign Jurisdiction that does not issue a title for that vehicle type; c. A bill
of sale for a vehicle not previously required to be titled or registered in the State of
Colorado; d. A bill of sale for a vehicle from a Foreign Jurisdiction if the Department
verifies that the jurisdiction does not issue a title for or register that vehicle type; e. A
Current Registration issued by the U.S. Armed Services; f. A copy of a court order
describing the vehicle by year, make, and Vehicle Identification Number (VIN), and
,directing the Department to issue a Colorado certificate of title to the applicant, or a
judgment for possession obtained through a civil proceeding pursuant to section 42-6-
114, C.R.S.; g. A completed DR 2409 Statement of Assembly of Homemade Trailer and
Assignment of Trailer I.D. Number if the trailer is a homemade vehicle as defined in
section 42-5- 201(4), C.R.S.; or h. Other evidence deemed by the Department to be
satisfactory evidence of vehicle ownership. 2.2 If an applicant does not have the
Colorado certificate of title and the Colorado record has been purged, any of the
following documents listing the applicant's name, submitted together with a completed
DR 2116 Motor Vehicle Bill of Sale For a Purged Colorado Record, may be considered
satisfactory evidence of proof of vehicle ownership: a. Colorado registration; b.
Colorado registration renewal card; c. Photocopy of the Colorado certificate of title; d. A
certified copy of the Colorado motor vehicle record; or e. Other documentation deemed
by the Department to be satisfactory evidence of vehicle ownership. 2.3 Any document
provided as evidence of vehicle ownership must include the VIN, vehicle year, vehicle
make, and the applicant's name listed as the owner, buyer, or transferee. 2.4 The
Department will not accept documents that do not contain all elements required to prove
authenticity (e.g., certification, notary, acceptable transfers, assignments, etc...). 66
Auto Industry Division Study Guide- Miscellaneous Statutes & Regulations 2.5 An
applicant who cannot provide satisfactory proof of vehicle ownership documents must
satisfy all requirements set forth in section 42-6-115, C.R.S., and 1 CCR 204-10. Rule
19. Bonding for Colorado Certificate of Title.
A buyers agent may:
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
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.
Cannot find in study guides or online... educated guess.
False?
...
"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
demonstration use shall be considered used' vehicles. Such "demonstrators" and other
motor vehicles
3
Auto Industry DivisionStudy Guide- Motor Vehicle Regulations
REGULATION 12-6-102(13)
which have been used by a dealer prior to their sale shall be titled in the dealer's name
and sold as
"used" motor vehicles.
an off premises permit:
Right Answer- must be readily available for inspection at the sale
motor vehicle dealer may sell motor vehicles at special sales events, shows, or other
organized
events, including, for example, at the National Western Stock Show, the Colorado State
Fair, the
Greeley Stampede, or the Denver Auto Show. In order to sell motor vehicles at a
location away
