CAR SALES TEST COLORADO QUESTIONS AND ANSWERSS
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:
Answers- 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
,Answers- 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.
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:
Answers- 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
,Answers- 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.
