Colorado Car Sales Practice Test

What does a true statement about a dealer selling a vehicle "as-is" entail?

1. Dealer must offer a warranty

2. Dealer must provide a written guarantee

3. Dealer must clearly indicate this on the contract

4. Dealer is exempt from emissions testing

The correct answer is: Dealer must clearly indicate this on the contract

When a dealer is selling a vehicle "as-is," it means that the buyer is accepting the vehicle in its current state, without any warranties or guarantees regarding its condition. Therefore, a true statement about this practice requires the dealer to clearly indicate that the sale is "as-is" on the contract. This notification is crucial for transparency and ensures that the buyer understands they are purchasing the vehicle without any promises from the dealer about its reliability or future performance. Including this information in the contract protects both the dealer and the buyer. It informs the buyer explicitly that they are responsible for any repairs needed after the transaction has been completed. By clearly stating the "as-is" nature of the sale within the contract, the dealer fulfills a legal obligation, enhancing the clarity of the sales process and helping to avoid potential disputes regarding the vehicle's condition post-sale. The other options present different requirements that are not applicable when a vehicle is sold "as-is." A warranty or written guarantee would contradict the as-is status because it implies an obligation on the dealer's part to stand by the vehicle after the sale. Additionally, the notion that a dealer is exempt from emissions testing does not relate to the as-is sale condition, as emissions testing is governed by state law and applies