Which of the following statements is true regarding the use of depot plates?

Prepare for the Colorado Motor Vehicle Salesperson Exam. Study with flashcards and multiple choice questions, each question includes hints and explanations. Ensure you're ready to excel!

The statement that depot plates are exclusively for repair and testing purposes is correct. Depot plates are a specific type of license plate that a dealership can use for vehicles that are not yet sold, allowing them to be driven for the purposes of testing or repairs. This facilitates the dealership's operations by enabling vehicles to move within the business operations without the need for standard registration.

Using depot plates for personal use is not permitted, as they are specifically intended for official dealership activities rather than personal driving. The ability to transfer these plates freely between dealers is also restricted; they are typically assigned to a specific dealership. Additionally, depot plates are not issued to customers for extended test drives, as this is a separate procedure involving dealership policies and customer agreements. This clarification underscores the correct application and legal usage of depot plates within the context of dealership operations.

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