Colorado Sales License Practice Test 2026 – Your All-in-One Guide to Passing the Exam!

Demo plates are specifically intended for use on vehicles owned or leased by a dealership. This is a regulation intended to ensure that demo vehicles, which are often used for test drives or by potential customers, are properly accounted for within the dealership's inventory.

The idea is to maintain control and oversight of the vehicles that are being demonstrated to customers, thereby preventing misuse and ensuring the dealership's insurance and liability coverage is applicable.

While there may be situations where permission is granted for other uses, such as using demo plates on vehicles that are not owned by the dealership, this would generally not comply with the standard regulations. Using demo plates on non-dealership vehicles could lead to legal issues, insurance complications, and violations of state regulations.

The primary function of demo plates is thus strictly tied to dealership-owned inventory, making option B the correct answer.