Colorado Guidelines for Referral Services
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The following guidelines are provided for the benefit of buyer referral services, programs, plans, clubs, companies, internet organizations, or other entities to comply with Colorado statutes and regulations.
Performing or arranging any of the following transactions requires a used motor vehicle/powersports dealer license in Colorado:
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Assisting with, arranging or negotiating the price or terms of a motor vehicle/powersports vehicle.
- Assisting with, arranging or providing delivery of the purchased or leased motor vehicle/powersports vehicle within Colorado.
- Accepting a down payment or deposit for a motor vehicle/powersports vehicle from a consumer.
- Offering, negotiating for the sale, purchase, lease or exchange of motor vehicle/powersports vehicles whether or not such motor vehicle/powersports vehicles are owned by such person. (Negotiation is defined as transacting business; discussing or arranging a sale; arranging the preliminaries of a business transaction; bargaining with another respecting a transaction; conducting communications with a view to reaching a settlement or agreement; that which passes between parties in the course of making a contract or arranging terms of a contract.)
- Receiving compensation of any kind from a Colorado dealer based on a per transaction, per vehicle or per referral basis. (Compensation is defined as a fee or other thing of value paid for transacting a piece of business or performing a service.)
- A club, service, organization, or other entity that takes ownership of motor vehicle/powersports vehicles and sells them to Colorado citizens falls under the definition of used motor vehicle/powersports vehicle dealer and must be licensed.
Performing or arranging any of the following transactions requires a buyer agent license in Colorado:
- Being hired or retained by a consumer to assist, represent, or act on behalf of such consumer in connection with the purchase or lease of a motor vehicle/powersports vehicle, for a fee. (A buyer agent cannot be employed by, or receive a fee from, a motor vehicle/powersports vehicle manufacturer or a motor vehicle/powersports vehicle dealer.)
Performing or arranging any of the following transactions may not require being licensed in Colorado:
- Refers customers to licensed dealers and is not compensated based on a per transaction, per referral or per vehicle sale basis. (Receipt of a fixed, periodic fee in advance for advertising services provided to a dealer, where the fee remains the same regardless of the number of leads generated or the number of vehicle sales resulting from the leads, does not constitute compensation for the sale of a motor vehicle/powersports vehicle, and does not require that the recipient be licensed as a motor vehicle/powersports vehicle salesperson or dealer.) To be exempt from licensing, entities making referrals of prospective customers to motor vehicle/powersports vehicle dealers must not have any further contact with the party being referred and cannot discuss or negotiate any of the terms of the potential purchase.
- Does not negotiate the sale, arrange the sale, or attempt to offer or sell motor vehicle/powersports vehicles.
- Does not conduct any of the activities that would require a motor vehicle/powersports vehicle salesperson or dealer license.