Colorado Motor Vehicle Salesperson Mastery Examination Practice 2026 - Free Salesperson Practice Questions and Study Guide

Dealer in-transit license plates are specifically designed to allow vehicles owned by a dealership to be driven legally on public streets while they are in the process of being sold. However, these plates are not permissible on vehicles that are being pulled or hauled. This is primarily because in-transit plates are meant for vehicles that are moving independently; when a vehicle is being towed, it is no longer considered to be in a status where it is being operated under its own power for the purposes of sale.

When a vehicle is being towed or hauled, the legal responsibility and operational status shift to the towing vehicle's registration and licensing requirements instead. Therefore, using in-transit plates in such situations does not conform to the intended regulatory framework that governs the use of these plates.

In contrast, the other situations described, such as vehicles used by dealership employees, those being operated by prospective buyers under supervision, and vehicles that are stationary at the dealership, do allow for the use of in-transit license plates. This creates a clear distinction in the regulations concerning the proper usage of these plates within the context they are designed for.