Colorado Car Sales Practice Test 2025 – All-in-One Guide to Master Your Exam Success!

Question: 1 / 400

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"

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.

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Sales contracts are not required for used vehicles

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