Engaging in the sale or lease of how many new or used motor vehicles is considered prima facie evidence of operating a dealership?

Engaging in the sale or lease of three new or used motor vehicles is recognized as prima facie evidence of operating a dealership in Colorado. This standard is important as it helps to regulate the motor vehicle industry and ensures that individuals or businesses engaging in such activities are properly licensed and adhering to the relevant laws and regulations.

Having a specific threshold, like three vehicles, helps to distinguish between casual sales among private individuals and the operation of a business that requires a dealer's license. It establishes a clear line, wherein consistently selling or leasing above that number indicates the intention to operate as a dealership, thereby requiring compliance with licensing requirements, consumer protection laws, and other regulatory obligations designed to promote fairness and transparency in the vehicle sales market.