Colorado Car Sales Practice Test

Which of the following does NOT qualify as a motor vehicle dealer?

1. Trustees acting under court order

2. A wholesaler selling to retailers

3. Employees of a dealership

4. A private car collector

The correct answer is: A private car collector

A private car collector does not qualify as a motor vehicle dealer primarily because they are not engaged in the regular business of selling vehicles to the general public. The definition of a motor vehicle dealer typically includes entities that are commercially involved in the buying and selling of vehicles, providing a consistent service to consumers and often requiring specific licenses to operate legally. In contrast, trustees acting under court order, wholesalers selling to retailers, and employees of a dealership all fall under situations where they are either acting on behalf of a dealership, engaged in transactions intended for resale, or conducting business-related activities that align with the responsibilities of a dealer. A private car collector typically buys and sells vehicles as a hobby rather than as a business, which means they do not meet the legal criteria set for motor vehicle dealers.