Who is permitted to sell new vehicles?

The correct answer is that only a licensed new vehicle dealer authorized by the manufacturer or distributor is permitted to sell new vehicles. This requirement exists to ensure that dealers adhere to specific standards set by manufacturers, which can include maintaining a proper facility, following ethical sales practices, and providing necessary service support for the vehicles sold. It also ensures that consumers receive consistent service and support from dealers who are knowledgeable about the specific vehicles they are selling.

Licensing serves as a regulatory measure to protect consumers and maintain fair competition within the automotive market. Manufacturers issue dealer licenses only to qualified entities that meet their criteria, thereby ensuring that only those with the proper training and resources can sell their new vehicles.