Colorado Car Sales Practice Test

What does a "used motor vehicle dealer" primarily sell?

1. Only new vehicles

2. Used vehicles or interests in them

3. Automotive parts and accessories

4. Rentals of vehicles only

The correct answer is: Used vehicles or interests in them

A "used motor vehicle dealer" primarily sells used vehicles or interests in them. This includes any pre-owned vehicles that have been previously registered and are being resold to consumers. These dealers focus exclusively on the trade of used cars, trucks, and other motor vehicles, which can encompass a variety of makes and models from different manufacturers. By definition, used motor vehicle dealers do not sell new vehicles, automotive parts, or accessories, nor do they specialize in vehicle rentals. Their business model revolves around buying used vehicles, often through trade-ins or auctions, and then selling them to customers at a profit. The emphasis is on providing consumers access to vehicles that have had a previous owner, allowing for a more cost-effective option compared to purchasing new vehicles. This distinction is crucial for understanding the role and operation of used motor vehicle dealerships in the broader automotive sales industry.