Colorado Car Sales Practice Test

What defines a "motor vehicle dealer" according to Colorado law?

1. A person who sells only used vehicles

2. A person who sells, leases, or exchanges motor vehicles for profit

3. A person who only represents a dealership without selling

4. A person who only repairs motor vehicles

The correct answer is: A person who sells, leases, or exchanges motor vehicles for profit

A "motor vehicle dealer" as defined by Colorado law includes anyone engaged in the business of selling, leasing, or exchanging motor vehicles for profit. This definition encompasses a broad range of activities related to the sale and leasing of vehicles, which is essential for identifying individuals and businesses operating within the automotive market. The emphasis on profit indicates that the activities must be conducted as a business rather than as a private venture. This definition is crucial for regulatory purposes, ensuring that those who are involved in the trade of motor vehicles comply with state laws that govern licensing, consumer protection, and business practices. Thus, the focus on selling, leasing, or exchanging motor vehicles aligns with the overarching criteria used to distinguish legitimate dealers from other individuals who might be involved with vehicles in different ways.