What is the required action when a demo plate is issued to a consumer?

Prepare for the Colorado Motor Vehicle Dealer Test. Utilize flashcards and multiple choice questions with hints and explanations. Get exam-ready!

When a demo plate is issued to a consumer, it is typically necessary for the transaction to be tied to the consummation of a sale. This means the issuance of a demo plate is not just a casual or arbitrary action; it’s related to a specific transaction where the consumer has expressed interest in purchasing the vehicle, usually while allowing them to test drive or evaluate the vehicle's performance.

The issuance of a demo plate under these circumstances helps ensure that the usage is legitimate and closely monitored. The demo plate is essentially a temporary registration allowing the consumer to drive the car while considering their purchase and is meant to give them a taste of ownership until an official sale is finalized. By requiring that demo plates be issued only upon consummation of a sale, it helps maintain proper documentation and accountability regarding vehicle use, thus preventing potential misuse.

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