Rev Up Your Career with the 2026 Colorado Car Sales Practice Test – Hit the Gas and Ace It!

A dealer conducts a lien check on a trade-in vehicle primarily to ensure that the vehicle can be legally sold. When a vehicle has a lien against it, it indicates that there is an outstanding debt associated with the vehicle, typically from a loan taken out to purchase it. The presence of a lien means that the current owner is not the sole owner, as the lender has a legal claim to the vehicle until the debt is paid off. By performing a lien check, the dealer confirms that the vehicle is free of any legal encumbrances that would prevent it from being sold, thus safeguarding the dealership and the buyer from potential legal issues arising from transferring ownership of a vehicle that still has financial obligations or outstanding debts attached to it.

The other options relate to aspects of vehicle evaluation or trade-in consideration but do not directly address the legal implications of selling a vehicle with a lien. Establishing market value, assessing maintenance records, and determining the age of the vehicle are important factors for a dealer, but they do not specifically pertain to the legal ability to sell the vehicle.