Dealer License Question
Todd OConnell
Good Morning All,
Quick question – Colorado “Dealer License” statutes really only address the selling of vehicles not the buying end. Do your states incorporate the buying into the “Dealer License” package of regulations or just the selling as noted in the Colorado statues below for (a) franchise dealers or (b) Independent dealers? Currently in Colorado, an unlicensed person can buy vehicles under the name of a licensed dealer without being licensed. This has precipitated discussion as to if buyers should be required to be licensed under the “dealer license”. Can unlicensed individuals buy cars (not sell) in your state?
- Motor vehicle dealer's license shall permit the licensee to engage in the business of selling, exchanging, leasing, or offering new and used motor vehicles, and this form of license shall permit not more than two persons named therein who shall be owners or part owners of the business of the licensee to act as motor vehicle salespersons.
- Used motor vehicle dealer's license shall permit the licensee to engage in the business of selling, exchanging, leasing, or offering used motor vehicles only. Such license shall also permit a licensee to negotiate for a consumer the sale, exchange, or lease of used and new motor vehicles not owned by the licensee, except those vehicles defined in section 42-1-102 (55), C.R.S., as motorcycles and section 33-14.5-101 (3), C.R.S., as off-highway vehicles; however, prior to completion of such sale, exchange, or lease of a motor vehicle not owned by the licensee, the licensee shall disclose in writing to the consumer whether the licensee will receive any compensation from the consumer and whether the licensee will receive any compensation from the owner of the motor vehicle as a result of such transaction. If the licensee receives compensation from the owner of the motor vehicle as a result of the transaction, the licensee shall include in the written disclosure the name of such owner from whom the licensee will receive compensation. This form of license shall permit not more than two persons named therein who shall be owners or part owners of the business of the licensee to act as motor vehicle salespersons.
Thank you for your time.
Take care.
Todd
TODD O’CONNELL
CEO
Colorado Independent Automobile Dealers Association / CIADA Charity Fund
