Colorado Car Sales Practice Test

A motor vehicle is considered "used" when it has:

1. Over 300 miles on it

2. More than fifteen hundred (1500) miles of demonstration use

3. Been sold previously

4. Had a single owner

The correct answer is: More than fifteen hundred (1500) miles of demonstration use

When determining whether a motor vehicle is classified as "used," the correct criterion is based on the mileage allowance regarding demonstration use. A vehicle is classified as "used" if it has been driven for more than fifteen hundred (1500) miles in demonstration purposes, indicating that it has been engaged in activities beyond just regular consumer use, affecting its resale status. Although other factors, like previous sales or ownership, may give context regarding a vehicle's history, they do not serve as the technical classification threshold for whether a vehicle is considered used or new in terms of sales practices. For instance, a vehicle can be sold multiple times or have one previous owner and still be categorized as new if it hasn't crossed the specified mileage limit imposed for demonstration use. Thus, the mileage standard regarding demonstration use stands as the defining characteristic for a vehicle's classification as "used."