Car Sales Test Colorado
Exam/110 Questions and
Answers/Updated/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: - -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 ac
-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
from the dealership, a motor vehicle dealer must apply for the
appropriate off-premise permit.
A motor vehicle dealer must not engage in any sales activity at an off-
premise location until the
board approves the appropriate off-premise permit.
The board recognizes two classes of off-premise permit based upon
specific sales-related
conditions and restrictions. These are:
Class One --- a Limited Sales Activity Off-premise Permit. The following
conditions and
restrictions apply to this permit:
Licensed salespersons or owners authorized to sell must be present at
the off-
premise location at all times when the public is present; and,
Licensed salespersons or owners authorized to sell may negotiate the
terms of a
sale at the off-premise location; and,
4
3)
b.1)
2)
Auto Industry DivisionStudy Guide- Motor Vehicle Regulations
The parties shall not execute sales-related documents at the off-premise
location, but must return to the dealership to execute any sales-related
documents.
Class Two --- a Full Sales Activity Off-premise Permit. The following
conditions and
restrictions apply to this permit:
Exam/110 Questions and
Answers/Updated/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: - -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 ac
-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
from the dealership, a motor vehicle dealer must apply for the
appropriate off-premise permit.
A motor vehicle dealer must not engage in any sales activity at an off-
premise location until the
board approves the appropriate off-premise permit.
The board recognizes two classes of off-premise permit based upon
specific sales-related
conditions and restrictions. These are:
Class One --- a Limited Sales Activity Off-premise Permit. The following
conditions and
restrictions apply to this permit:
Licensed salespersons or owners authorized to sell must be present at
the off-
premise location at all times when the public is present; and,
Licensed salespersons or owners authorized to sell may negotiate the
terms of a
sale at the off-premise location; and,
4
3)
b.1)
2)
Auto Industry DivisionStudy Guide- Motor Vehicle Regulations
The parties shall not execute sales-related documents at the off-premise
location, but must return to the dealership to execute any sales-related
documents.
Class Two --- a Full Sales Activity Off-premise Permit. The following
conditions and
restrictions apply to this permit:
