Colorado Car Sales Practice Test

Which vehicles may display dealer in-transit license plates?

1. Only personal vehicles

2. Vehicles under repair

3. Vehicles for sale or demo purposes

4. Vehicles being transported for junking

The correct answer is: Vehicles for sale or demo purposes

Dealer in-transit license plates are specifically designed for use on vehicles that are being transported for sale or as demonstration units. This temporary registration allows dealerships to legally operate and showcase vehicles that have not yet been registered to a specific owner. Using these plates facilitates the movement of new inventory and allows dealerships to take demo vehicles to various locations for potential buyers to test. It is a practical and legal means of allowing dealerships to conduct business efficiently without waiting for the permanent registration process. In contrast, the other options do not align with the purpose of in-transit license plates. Personal vehicles typically require standard registration plates. Vehicles under repair would not usually fall under the sales or demo category, and while junking vehicles involves a process of deregistration, it does not pertain to the sales function for which in-transit plates are intended. Therefore, the primary function of these plates is best reflected by the context of vehicles that are actively for sale or designated for demonstrations.