What legal action must a dealer take for a used vehicle sold to a wholesaler?

Study for the Colorado Motor Vehicle Dealer Board Exam. Enhance knowledge with quiz questions that come with hints and explanations. Prepare confidently for your dealer board exam!

When a dealer sells a used vehicle to a wholesaler, providing a temporary registration permit is the legal action that allows the wholesaler to operate the vehicle legally until they can secure permanent registration. This is essential for ensuring that the vehicle can be driven on public roads while the ownership transfer is being finalized. A temporary registration serves as a legal document that verifies the wholesaler's right to use the vehicle during this interim period.

In contrast, issuing a permanent title immediately is not typical in wholesale transactions since the title process usually involves a more extended transfer to the end consumer, not a wholesale dealer. Contacting the dealership’s insurance may be a good practice to manage liability, but it is not a legal requirement in relation to the transaction itself. Delivering the vehicle within 14 days is not a standard legal requirement associated with wholesale transactions; each situation may vary based on agreements between dealers. Thus, the most applicable and legally relevant action in this context is to provide a temporary registration permit.

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