Colorado Motor Vehicle Dealer Bond

The full name of the Colorado Motor Vehicle Dealer Bond is 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.  It is a type of surety bond and is required to obtain a license to sell motor vehicles in the state of Colorado. Colorado distinguishes between Motor Vehicle Dealers and Power Sport Dealers and require different licenses for selling new or used, and retail or wholesale vehicles. The cost of the surety bond is usually between 1% and 3% of the bond amount, subject to a minimum premium and fees of $150. Surety1 will shop its many markets to procure the right price at the right terms.

How to Get a Colorado Motor Vehicle Dealer Bond

At Surety1.com, we make it easy to obtain this surety bond. our simple three step process is:

1. Complete the easy to navigate and secure online application. ¹
2. Review the free, no obligation quote from one of Surety1’s professional surety bond agents, usually within one business day.
3. Sign some paperwork and pay the bond premium

After these steps have been completed, the Colorado Motor Vehicle Dealer Bond will be shipped to the principal (Dealer), to be signed prior to submitting the bond tot he Department of Motor Vehicles.
^{1- The name on the application must be the  FULL LEGAL NAME and include a DBA if any.}
Surety1.com is a service of AssuredPartners one of the largest and fastest growing insurance agencies in the nation. Representing over a dozen surety bond companies, Surety1.com is the premier online provider of surety bonds nationwide since 2003 and maintains an A+ rating from the Better Business Bureau.

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License Requirements

Obtaining the required surety bond is just one of the requisites to obtain the license. Other requirements include:

1. New Worth Requirement of $100,000
2. Vantage score of at least 701 or higher for each applicant
3. Background Check
4. Dealer/Wholesaler Checklist
   No person may hold both a wholesaler license and a motor vehicle salesperson license at the same time.
   A wholesaler may not employ a motor vehicle salesperson.
   Complete and submit a Dealer/Wholesale License Application (DR 2109). Incomplete applications may delay processing.
5. Dealer/Wholesaler License Application
6. Dealer/Wholesaler License Application Addendum
7. Pre-licensing Education Certificate
8. Mastery Exam
9. Verification of Fingerprints
10. Colorado Motor Vehicle Dealer Bond
11. Secure Verifiable Identification – Proof of Lawful Presence
12. Affidavit – Restriction on Public Benefits
13. Statement of Financial Condition for the applicant and all owners 
14. Business Documents 
15. Business Plan
16. Location Lease
17. Place of Business Affidavit
18. Franchise Agreement
19. Dealer Plate Affidavit
20. Sales Tax License
21. Wholesalers
22. UCC Retail Business Requirements
23. Written Correspondence
24.  Pay Fee(s)

The information provided above is for general informational purposes only and does not constitute legal advice.  Do not rely solely on the information presented here as a substitute for professional legal counsel.

Surety Bond

The Required surety bond amount is $50,000,  Small trailer dealers weighing less than 2000 pounds the surety bond amount is $5,000. This bond guarantees the principal (Motor Vehicle Dealer) will abide by all Colorado state laws and regulations outlined in 12-6-111(1) and 12-6-512(1) of the Colorado Revised Statutes. The bond is continuous until cancelled which means a new bond is not required to renew an existing license.