What must happen if a vehicle with more than 1,500 demonstration miles is sold?

Answer: B — It must be titled in the dealer's name and sold as used

When a vehicle has more than 1,500 demonstration miles, it is classified differently from a new vehicle. In Colorado, once a vehicle reaches this mileage threshold, the appropriate procedure is to title it in the dealer's name and then sell it as a used vehicle. This distinction is critical because it affects the registration, taxes, and the potential warranties applicable to the buyer. Selling it as a used vehicle assures compliance with state regulations that govern vehicle classifications based on usage and mileage. This also helps inform potential buyers about the vehicle's status, ensuring transparency in the sales process. Properly titling the vehicle ensures that its history is accurately documented, which is vital for both legal and consumer protection reasons, contributing to buyer confidence in the purchase.