Colorado Sales License Practice Test

Who qualifies as a used motor vehicle dealer?

1. A person who only sells new vehicles

2. A person who negotiates sales with the intent to profit

3. A person who repairs vehicles for resale

4. A person who buys vehicles solely for personal use

The correct answer is: A person who negotiates sales with the intent to profit

A used motor vehicle dealer is someone who engages in the business of buying and selling vehicles with the intent to profit. This definition is integral to delineating who qualifies as a dealer in the automotive industry, focusing on the aspect of professional sales rather than casual transactions. The intent to profit indicates that the person is conducting sales as part of a business endeavor, which distinguishes them from private individuals who may occasionally sell their own vehicles. It reflects a formal role in the market, as opposed to someone whose activities are limited to personal use or non-commercial repair. In this context, buying vehicles solely for personal use or for repair does not meet the criteria of a dealer, as those actions lack the fundamental goal of profit-driven sales. Therefore, understanding the emphasis on intent in this definition helps clarify the responsibilities and regulatory requirements that come with being recognized as a used motor vehicle dealer in Colorado.