Colorado Motor Vehicle Dealer Bond
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How much does a Colorado motor vehicle dealer bond cost?
Colorado motor vehicle dealer bond costs start at $450 for the state-required 1-year term. Your exact vehicle dealer bond premium will be provided after a quick application review. Apply now to get your free, personal quote!
How do you apply for a Colorado dealer surety bond?
You can apply for your free Colorado motor dealer bond quote online 24/7. You'll need to provide the following information for Motor Vehicle Dealer Board approval.
- dealer/dealership name
- dealership street address
- dealership county
- license type
Once your order has been processed, you'll receive a copy of your bond by email, and your official bond paperwork will be shipped to your preferred mailing address.
How long will it take to get your Colorado dealer bond?
Our industry-leading technology and responsive customer service team allow us to offer free quotes and deliver your official Colorado motor dealer bond faster than any other surety provider. The MVD Board requires your official Colorado auto dealer bond be physically issued and shipped to you, so choose overnight shipping during checkout if you're in a rush. Orders placed by 4 PM CST Monday-Friday are typically shipped same-day.
If you have questions about the Colorado dealer bond requirement or your application, call 1(800)308-4358 to speak with a friendly surety expert. We're here to guide you through the dealer bond process so you can get back to running your business.
What is the purpose of the Colorado auto dealer bond?
Colorado Revised Statutes 44-20-112 requires individuals file a $50,000 surety bond before being approved for a dealer license in the state. The state-required bond form DR 2830 is formally titled the “Bond of Motor Vehicle Dealer, Powersports Vehicle Dealer, Used Motor Vehicle Dealer, Used Powersports Vehicle Dealer, Business Disposal Dealer, Wholesaler, or Wholesale Motor Vehicle Auction-Dealer,” but it's more commonly known as the "Colorado motor vehicle dealer bond" or just “auto dealer bond.” The bond form specifically prohibits licensed auto dealers from committing fraud, fraudulently misrepresenting themselves, or violating other provisions outlined in Colorado Revised States Article 20 Title 44 part 1 and/or part 4.
The state enforces a similar, but different, $15,000 surety bond requirement for individuals employed by a dealership as a salesperson (form DR 2831). Learn more about the Colorado motor vehicle salesperson bond.
Why do you need a Colorado auto dealer bond?
By filing this surety bond, you agree to operate your dealership according to Colorado Revised Statutes. If you fail to do so, the bond protects individuals, firms, and corporations from losses, damages, and expenses resulting from your noncompliance. Your issuing surety company will pay valid claims up to the full $50,000 bond amount, which you would be required to reimburse.
The Colorado auto dealer bond is required for professional business licensing. If you're trying to register a vehicle with a missing title, a separate Colorado certificate of title bond is required.
Who regulates licensing for auto dealers?
The Colorado Department of Revenue Motor Vehicle Board enforces motor vehicle dealer license requirements for the state. If you have questions about the Colorado motor vehicle bond or the status of your auto dealer license, the state advises you contact the Auto Industry Division by calling 1(303)205-5604 or emailing [email protected].
Who is required to get a Colorado auto dealer bond?
Individuals who sell 3 or more cars at a property must be legally licensed and bonded. The state requires the following professions to file a $50,000 bond.
- motor vehicle dealer
- used motor vehicle dealer
- powersports vehicle dealer
- used powersports vehicle dealer
- wholesaler
- wholesale motor vehicle auction-dealer
- business disposal dealer
How do Colorado auto dealers file your bond?
The Colorado Auto Industry Division accepts dealer application paperwork online. You can access the Department of Revenue Specialized Business Group online account management system here.
How do I update or change my auto dealer bond form?
If the Motor Vehicle Board requires your surety bond documentation to be updated for any reason, contact your surety company. If you purchased your bond from SuretyBonds.com, email [email protected] to explain the needed change.
The most common changes for these bonds include:
- dealer/dealership name
- dealership street address
- dealership county
How do I renew my auto dealer bond?
You should renew your Colorado auto dealer bond before its current 1-year term expires. Once you pay your SuretyBonds.com renewal invoice, renewal instructions will be emailed to you to keep your bond active for your next dealer license term.
How do auto dealers apply for a license in Colorado?
Complete the following steps to apply for a Colorado car dealer license.
- Fill out and submit an application.
- Pay the licensing fee that corresponds with the applicant's license type. Checks should be made payable to the Department of Revenue.
- Fill out an addendum form for each owner, partner, member, and officer.
- Submit proof of completion of a Pre-Licensing Education and Training class.
- Purchase and submit the original dealer surety bond in the required bond amount.
- Fill out the Mastery Examination Affidavit noting completion of the online Auto Industry Mastery Examination (corporations only).
- Provide a Verification of Fingerprints and 2 fingerprint cards.
- Complete the Affidavit - Restriction on Public Benefits for all owners, partners, members, and officers.
- Submit the financial statements of each owner, member, or partner.
- Submit a certificate of good standing from the Colorado Secretary of State (LLC, LLP, Corporations only).
- Attach a copy of your Certificate of Assumed or Trade Name (if applicable).
- Submit a business plan.
- Submit a copy of your lease (if applicable).
- Complete the Place of Business Affidavit form.
- Provide a letter of intent and franchise/dealer agreement (if applicable).
- Complete and sign a dealer plate affidavit.
- Provide a copy of your sales tax license.
Have Questions?
Call 1 (800) 308-4358 to talk with a Surety Expert today.
