(1)The following classes of licenses are
issued under this part 1:
(a)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.
(b)Used motor vehicle dealer's license, which permits the licensee to
engage in the business of selling, exchanging, leasing, or offering used motor
vehicles only. The license also permits 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 (7.5) and (
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(1) The following classes of licenses are
issued under this part 1:
(a) 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.
(b) Used motor vehicle dealer's license, which permits the licensee to
engage in the business of selling, exchanging, leasing, or offering used motor
vehicles only. The license also permits 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 (7.5) and (55) as autocycles or
motorcycles and section 33-14.5-101 (3) as off-highway vehicles; however, prior to
completion of the 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 the
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 the owner from whom the licensee will receive
compensation. This form of license permits not more than two persons named in the
license, who shall be owners or part owners of the business of the licensee, to act
as motor vehicle salespersons.
(c) A motor vehicle salesperson's license permits the licensee to engage in
the activities of a motor vehicle salesperson while employed by a licensed motor
vehicle dealer or used motor vehicle dealer.
(d) Manufacturer's or distributor's license shall permit the licensee to
engage in the activities of a manufacturer, distributor, factory branch, or distributor
branch and to sell fire trucks.
(e) A wholesaler's license permits the licensee to engage in the activities of a
wholesaler, but does not permit more than two individuals, who must be named in
the license and who must be owners or part owners of the business of the licensee,
to perform the activities of a wholesaler.
(f) Manufacturer representative's license shall permit the licensee to engage
in the activities of a manufacturer representative.
(g) Buyer agent's license shall permit the licensee to engage in the activities
of a buyer agent.
(h) (I) Wholesale motor vehicle auction dealer's license shall permit a
licensee to engage in the activities of a wholesale motor vehicle auction dealer if
the licensee provides auction services solely in connection with wholesale
transactions in which the purchasers are motor vehicle dealers licensed by this
state or any other jurisdiction or in connection with the sale of government vehicles
to consumers at a time and place that does not conflict with a wholesale motor
vehicle auction conducted by that licensee. A wholesale motor vehicle auction
dealer shall abide by all laws and rules of the state of Colorado.
(II) A wholesale motor vehicle auction dealer shall maintain a check and title
insurance policy for the benefit of the dealer's customers or, alternatively, a
wholesale motor vehicle auction dealer shall provide written guarantees of title to
the dealer's purchasing customers and written guarantees of payment to the
dealer's selling dealers with coverage and exclusions that are customary in check
and title insurance policies available to wholesale motor vehicle auction dealers.
(i) If the sales value of all the motor vehicles sold does not exceed twenty
percent of the business's gross revenue, the business disposal license permits a
business to sell used motor vehicles that:
(I) Have been owned for more than one year;
(II) Have been used exclusively for business purposes;
(III) Are titled in the name of the business;
(IV) For which all related taxes have been paid; and
(V) Are not designed or used primarily to carry passengers, not including:
(A) A vehicle designed primarily for transporting more than ten individuals;
or
(B) A truck having an enclosed cab and an open cargo area.
(2) Any license issued by the executive director pursuant to law in effect
prior to July 1, 1992, shall be valid for the period for which issued.
(3) The licensing requirements of this part 1 do not apply to banks, savings
banks, savings and loan associations, building and loan associations, or credit
unions or an affiliate or subsidiary of the entities in offering to sell, or in the sale of,
a motor vehicle that was subject to a lease or that has been repossessed or
foreclosed upon if the repossession or foreclosure is in connection with a loan made
or originated in Colorado.
(4) The licensing requirements of this part 1 shall not apply to an insurance
company selling or offering to sell a motor vehicle through a motor vehicle dealer
or used motor vehicle dealer if the vehicle is obtained by the company as a result of
an insurance claim.