In Colorado, all parties engaged in the sale of motor vehicles or powersports must be licensed as a dealer, regardless of whether they operate a physical storefront, sell new or used vehicles, or deal in powersports items. This licensing requirement applies broadly to ensure that all dealers abide by the state's regulations, which are designed to promote fair trading, consumer protection, and adherence to safety standards.
Licensing serves multiple purposes: it verifies that dealers have met the necessary legal requirements and are qualified to sell vehicles or powersports equipment. By requiring all parties in this industry, including those who might consider themselves casual sellers or operate on a smaller scale, to obtain a license, Colorado upholds a more consistent and regulated marketplace that can help prevent fraud and ensure accountability across all types of vehicle sales, whether they are new or used.