(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.
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