Colorado Car Sales Practice Test 2026 - Free Car Sales Practice Questions and Study Guide

A "dealer trade" refers to an arrangement in which one automotive dealer exchanges vehicles with another dealer. This practice allows dealerships to acquire specific models or makes that are in demand from other dealers, helping them meet customer requests that they might not have been able to fulfill otherwise. For instance, if a customer is looking for a particular car that one dealership does not have in stock, they can negotiate a trade with another dealership to satisfy the customer’s needs without losing the sale. This arrangement enables effective inventory management and improves customer satisfaction by diversifying the available options on a dealership's lot.

The other options describe different aspects of automotive sales but do not accurately capture the definition of a dealer trade. For example, offering discounts on vehicles pertains to pricing strategies but is independent of vehicle exchange. Financing pertains to the financial assistance dealers provide to customers but does not involve the exchange of vehicles. Lastly, a special sale event among dealerships is more about promotional activities rather than the trade of inventory between them.