CAR SALES MASTERY EXAM COLORADO ACTUAL
EXAM 2024 LATEST TEST WITH 150 ACTUAL EXAM
QUESTIONS AND CORRECT ANSWERS (GRADED A+)
COLORADO CAR SALES MASTERY TEST 2024
Which of the following is considered prima facie evidence that a person is engaged in the business of setting of leasing motor vehicles or powersport vehicles - ANSWER ✔selling, leasing, exchanging, renting, with option to purchase, offering, or negotiating, an exchange of interest in three or more vehicles or ten or more powersport vehicles in any one calendar year What is the highest fine per offense (key word) that the motor vehicle dealer board or an admirative law judge may impose on a dealer who sells primarily vehicles that weigh less than 1,500 pounds -
ANSWER ✔$1,000
The federal odometer law declares that it is unlawful to do any of the following execpt: - ANSWER ✔to replace the odometer under certain circumstances the license of a motor vehicle salesperson or powersport may be denied, revoked, or suspended on any of the following grounds except: - ANSWER ✔advertising a salvaged vehicle while identifying the vehicle as a salvage vehicle Three of the following are required to be disclosed in an advertisement when a dealer us advertising a closed-end credit sale of motor vehicle or powersports vehicle with down payment amount, payment amount, number of payments and period of repayment or amount of finance charge. Which one is n ot required? - ANSWER ✔tax rate the license of a motor vehicle salesperson or powersport may be denied, revoked, or suspended on any of the following grounds except: - ANSWER ✔using point of sale literature in advertising RATED
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full use dealer plates can be displayed on all vehicles owned and offered for sale by dealer or wholesaler, except those that are used on tow vehicles or parts delivery/pickup vehicles - ANSWER ✔ the license of a dealer may be denied, revoked, or suspended on any of the following grounds except: - ANSWER ✔employing a properly licensed sales person the motor vehicle dealer board is authorized and empowered to - ANSWER ✔all the above it is unlawful for a motor vehicle salesperson to: - ANSWER ✔begin acting as a salesperson while awaiting a new license from the board the definition of a used motor vehicle dealer or used powersports dealer includes which of the following - ANSWER ✔A person who attempts to negoitiate a sale or lease of a used motor vehicle or powersports vehicle woth the intent to make a profit or gain The federal cash reporting rule required dealers to file federal form 8300 with the internal revenue service when they recieve more than $10,000 cash in a single transaction. How many days does a dealer have to file the form. - ANSWER ✔15 days Motor Vehicles may be sold on Sundays - ANSWER ✔ hen a salesperson leaves a dealer, that dealer must return that salesperson's license to the Auto Industry Division - ANSWER ✔True Which of the following would indicate a motor vehicle is used - ANSWER ✔Someone who sells motor vehicles solely to wholesalers Which of the following is true regarding in-transit plates - ANSWER ✔in-transit plates may be used for point of purchase to the point of storage, or from the point of storage to the point of sale
Dealer In-Transit License Plates: 1. May be displayed on vehicles that: a. Are for intra-state and inter-state transport of vehicles offered for sale, consigned to be sold, or owned by a dealer. b. Are being operated from point of purchase to the point of storage, or from the point of storage to the point of sale. c. Are for demonstration purposes only when a dealership employee is in the vehicle with the prospective buyer. d.Are in a safe roadworthy condition. 2. Dealer In-Transit license plates may not be displayed on vehicles that: 76 Auto Industry Division Study Guide- Miscellaneous Statutes & Regulations a. Are being operated by prospective buyers without a dealership employee being present in the vehicle while being operated, or;
- Have been sold, leased, or rented, or; c. Are dealer or dealership employees' personal vehicles, or; d. Are 2 / 4
loaned or donated by the dealership, or; e. Are being pulled, hauled or are otherwise considered cargo, or; f.Are tow vehicles or parts pickup/delivery vehicles.according to COlorado law, which of the following does not need to be a licenses as a motor vehicle dealer and/or powersports dealer? - ANSWER ✔a buyers agent
Licensed salespersons cannot obtain a buyer agent license because they receive compensation from a dealer.Buyer agents are strictly prohibited from being employed or receiving any fee from a dealer.a dealer must take the title in their own name before selling a car to a retail customer - ANSWER ✔Unsure... False
A "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 Division Study Guide- Motor Vehicle Regulations 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. All vehicles which do not qualify as "new" motor vehicles shall be deemed to be "used" motor vehicles for the purpose of administration of this Act.
- ANSWER ✔1 "Depot License Plates" or "Depot Tags" - means a numbered plate issued by the
- ANSWER ✔https://www.ftc.gov/tips-advice/business-center/guidance/answering-dealers-questions-
department authorizing the movement of dealership vehicles to and from the dealer's place of business or storage for the purpose of completing work tha
about-revised-used-car-rule
The new English-language version of the Buyers Guide adds a statement in Spanish advising Spanish- speaking consumers to ask for the Buyers Guide in Spanish if the dealer is conducting the sale in Spanish. 3 / 4
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: - ANSWER ✔Advertising a salvage vehicle while identifying the vehicle as a salvage vehicle The advertise price of a motor vehicle must include: - ANSWER ✔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)
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