Colorado Sales License Practice Test

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Who is considered a used motor vehicle dealer?

Anyone who sells new vehicles

A person negotiating sales to make a profit

A used motor vehicle dealer is typically defined as someone who engages in the sale of used vehicles for the purpose of making a profit. This definition encompasses not only dealerships specifically licensed to sell used vehicles but also individual sellers who may repeatedly sell used cars as a business activity rather than just casual private sales. The key element that makes a seller a used motor vehicle dealer is the intention to earn a profit through the sale of vehicles, which distinguishes them from individuals who sell personal vehicles occasionally or those who sell new vehicles.

This distinction helps to ensure that used motor vehicle dealers are subject to specific regulations, licensing requirements, and professional standards designed to protect consumers. Hence, while both licensed dealerships and individuals can sell vehicles, it’s the intent to engage in sales as a business with a profit motive that classifies someone as a dealer in the context of this question.

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Only licensed dealerships

Individuals selling personal vehicles

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