AGO 84-15.

Case Date:August 21, 1984
Colorado Attorney General Opinions 1984. AGO 84-15. August 21, 1984Department of Law Attorney General Opinion FORMAL OPINION of DUANE WOODARD Attorney General Opinion No. 84-15 AG Alpha No. RV DB AGANK Larry G. Dyslin Executive Secretary Motor Vehicle Dealer Licensing Board State of Colorado 140 West Sixth Avenue Denver, CO 80204 RE: Whether automobile leasing firm is a motor vehicle dealer as provided in section 12-6-102(13), C.R.S. (1973) and whether the leasing firm's agent is a used motor vehicle dealer as provided in section 12-6-102(17), C.R.S. (1973)Dear Mr. Dyslin: This opinion letter is in response to your July 10, 1984 letter, in which you inquired whether automobile leasing companies and their agents were acting as motor vehicle dealers. QUESTIONS PRESENTED AND CONCLUSIONS Your request for an attorney general's opinion presents the following questions: Facts An automobile leasing company uses a closed-end lease which provides the lessee no option to purchase the vehicle. The lease provides that the lessee may sell the vehicle at the end of the lease and retain the sale proceeds in excess of the estimated depreciated value of the vehicle. Further, the leasing company's agent will assist the lessee in disposing of any vehicle the lessee may own prior to entering the lease. Whether the leasing company is a motor vehicle dealer as defined in section 12-6-102(13), C.R.S. (1973)? Yes. Whether the agent is a used motor vehicle dealer as provided in section 12-6-102(17), C.R.S. (1973)? Yes. ANALYSIS Section 12-6-102(13), C.R.S. (1973) provides that any person who sells, exchanges, rents with option to purchase, offers, or attempts to negotiate a sale or exchange of an interest in motor vehicles, with intent to make a gain of anything of value, is a motor vehicle dealer. The leasing company that rents with no option to purchase appears not to fall within this definition. However, where the lease grants the lessee the power to sell the vehicle, a close analysis is required to determine whether the lessor is a motor vehicle dealer. The dealer licensing laws were enacted for the protection of the public, section 12-6-101, C.R.S. (1973), and should be broadly construed to encompass all who are within their ambit. See State v. Miner, 331 N.W.2d 683 (Iowa 1983). The leasing company that grants the lessee the power to...

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