Colorado Car Sales Practice Test

What condition applies when a dealer wishes to change their line-make of vehicles?

1. Notify the board in advance

2. Submit a new license application

3. There are no conditions

4. Maintain the same advertising strategy

The correct answer is: Notify the board in advance

When a dealer wishes to change their line-make of vehicles, the correct procedure involves notifying the board in advance. This requirement ensures that regulatory bodies are aware of the change, facilitating oversight and maintaining compliance with state laws regarding vehicle sales. The notification allows the board to manage and monitor changes in the automotive market effectively, ensuring that all dealers adhere to established protocols and standards related to their operations. Submitting a new license application would not be necessary in all cases, as the dealer may not be required to obtain a completely new license if they are merely switching vehicle lines under an existing licensing framework. The idea that there are no conditions is inaccurate since regulatory processes are in place to govern such changes. Lastly, maintaining the same advertising strategy does not apply to changing line-makes, as advertising may need to be adjusted to reflect the new products being sold. Thus, notifying the board before making any changes is crucial for compliance and proper management of vehicle sales in the state.