Colorado Car Sales Practice Test

Which entity does not need to be licensed as a motor vehicle dealer in Colorado?

1. A buyer's agent

2. A full-time vehicle dealer

3. A vehicle wholesaler

4. A dealership manager

The correct answer is: A buyer's agent

In Colorado, a buyer's agent functions primarily as an intermediary between the buyer and the seller in a vehicle transaction. This role typically involves assisting buyers in navigating the purchase process and representing their interests, rather than engaging directly in the selling of vehicles. Because the primary responsibility of a buyer's agent does not include buying or selling vehicles as a business, they do not require a dealer's license. In contrast, full-time vehicle dealers, vehicle wholesalers, and dealership managers all directly engage in the buying and selling of vehicles or oversee those operations, which necessitates obtaining a dealer's license under Colorado law. Therefore, the buyer's agent is correctly identified as the entity that does not need to be licensed as a motor vehicle dealer.