Dealer-related Information in Colorado

License for the Middleman?

Colorado requires certain individuals and businesses that link prospective customers with dealers to possess a "used car license." Generally, if you simply stick to referring without direct involvement, you do not need any certification.

Referring, as defined by the Colorado Auto Industry Division, does not involve receiving compensation from any party or include acting as a participant in the sale (no negotiation or offers made).

If you assist in the process of the sale between a dealer and customer you most likely need the proper accreditation. Assisting is a whole other ballgame because it involves the physical act(s) of aiding in the negotiation, financing, and closing of a sale. It is also defined as delivering a vehicle, accepting the down payment for a vehicle on a dealer's behalf, and receiving compensation for all of these activities or services. The Colorado Auto Division Industry provides comprehensive guidelines for referring and assisting.

If you do need to obtain a license, find out how to apply.

Complaint Process

There is an extensive process to maneuver through for those seeking to file a complaint with the Auto Industry Division, which is the enforcement arm overseeing dealers, manufacturers, and wholesalers. It is important to understand the rights of a consumer filing the grievance within the boundaries of the motor vehicle laws, and the regulations governing those at the receiving end of the complaint.

Grievances can include distorting an odometer reading, not meeting contract terms, or not disclosing a salvage vehicle's origin.

It is in the best interests of all parties to resolve the issue without the formality of a written complaint, but on many occasions the dealer and consumer cannot come to a consensus. Filed complaints need to be registered on either Form DR2122 or Form DR2121 . Send completed forms to the address on the form

For more information, contact the Auto Industry Division at (303) 866-2532.

Exactly What is a Curbstoner Anyway?

A "curbstoner" is an unlicensed salesperson or dealer. They are not under the regulation umbrella of the Colorado Motor Vehicle Dealer Board nor the Colorado Consumer Protection Act, and thus pose a threat to consumers. They tend to commit fraud by selling undisclosed salvage vehicles, and they lack a permanent place of business, fail to pay sales taxes, roll back odometers, and will not hold a title in their name, making them difficult to pin down.

If you find that you are dealing with one of these scoundrels, you should report them at once using the above complaint process.

Motor Vehicle Repairs

If your dealership also has a service center, the law in Colorado does not allow any work to be started without first offering the customer a written estimate. Once the estimate is completed the final bill must not surpass the estimate by more than 10% or $25.

Lemon Law

The Lemon Law in Colorado is much the same as in other states, and acts as a consumer safeguard against faulty vehicles. In many ways the dealer is a go-between for the customer and the manufacturer, and if the dealership has a service center, repairs most likely will be conducted there.

In a nutshell, the law states a customer can get a replacement car or their money back if a vehicle sold to them has a defective part that cannot be rectified after four attempts. The vehicle in question needs to be under warranty, and each of the four tries at fixing the problem need to occur within a year's time.

For additional dealer information, see Dealers & Auto Industry, Dealer Licensing Requirements, and Dealer Forms on this site.

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