Is it true that a dealer must take the title in their own name before selling a car to a retail customer?

The correct answer indicates that a dealer does not need to take the title in their own name before selling a car to a retail customer. In many states, including Colorado, dealers can sell cars directly to customers with the title assigned to the buyer at the point of sale, often facilitating a more streamlined transaction process.

When a dealer buys a vehicle, they typically receive the title from the previous owner. They can then sell that vehicle to a customer without needing to change the title into the dealership’s name first. This practice reduces administrative overhead and allows for quicker sales, benefiting both the dealer and the customer.

This approach is particularly important in the used car market, where swift transactions can enhance customer satisfaction and improve sales velocity. It enables dealers to maintain a consistent inventory turnover without unnecessary delays associated with processing title transfers on each unit.