Colorado Sales License Practice Test

Dealer demo plates may be used on motor vehicles that are:

1. Registered under the owner’s name

2. Properly assigned in the name of the dealership

3. Used for personal errands

4. Listed for sale in a public auction

The correct answer is: Properly assigned in the name of the dealership

Dealer demo plates are specifically designated for use by dealerships on vehicles that are properly assigned to the dealership. This setup allows dealerships to demonstrate vehicles to prospective buyers and utilize them for promotional purposes. When a vehicle is listed under the name of the dealership, it ensures that the dealership has the legal authority to utilize the demo plates for test drives or promotional activities. Using dealer demo plates on vehicles not assigned to the dealership would violate regulations governing their use, as those plates are intended strictly for dealership-related activities. For example, vehicles registered under an owner's name would not qualify because they do not belong to the dealership, and using them outside of dealership operations could lead to legal complications. Furthermore, personal errands or vehicles in public auction do not align with the intended purpose of dealer demo plates, which are focused on facilitating dealership operations and sales.