Colorado Car Sales Practice Test

Under which condition may a customer's trade-in vehicle be sold?

1. When financing has been approved

2. As soon as the trade-in is accepted

3. After two weeks of waiting

4. Only when sold at auction

The correct answer is: When financing has been approved

The correct answer focuses on the condition that financing has been approved before a customer's trade-in vehicle can be sold. This is essential because the dealership needs to ensure that the financing arrangement for the new vehicle is secure. Until financing is finalized, the trade-in vehicle is part of the overall deal structure. Selling the trade-in before securing financing puts the dealership at risk, as they may not have the necessary funds or credit approval to complete the transaction. In contrast, the other options do not address the necessary financial process involved in a trade-in. Accepting a trade-in immediately, a waiting period, or selling only at auction does not consider the financial implications that ensure both the sale of the new vehicle and the acceptance of the trade-in are legally and financially sound.