Colorado Car Sales Practice Test

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the Colorado Car Sales Test with confidence! Engage in multiple-choice questions and flashcards designed to enhance your knowledge. Equip yourself with the information to succeed on your exam and launch your car sales career!

Practice this question and more.

Which statement about sales contracts is true regarding used vehicles?

All used vehicles must be sold with a warranty
Vehicles sold "as-is" must have a guarantee
Dealers must indicate on the contract when a vehicle is sold "as-is"
Sales contracts are not required for used vehicles

The correct answer is: Dealers must indicate on the contract when a vehicle is sold "as-is"

The correct statement emphasizes that dealers have an obligation to indicate on the sales contract when a vehicle is sold "as-is." This is crucial because an "as-is" sale means that the buyer accepts the vehicle in its current condition without any guarantees or warranties. By clearly marking this on the contract, the dealer ensures that the buyer is aware of the limitations regarding liability for defects or future repairs. This practice helps to maintain transparency in the sales process and safeguards both parties by clearly communicating the conditions of the sale. The indication of "as-is" on the contract serves not only as a protection for the dealer but also informs the buyer about the nature of their purchase, which is fundamental to maintaining fair practices in used vehicle sales.