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.
Obtaining the required surety bond is just one of the requisites to obtain the license. Other requirements include:
- New Worth Requirement of $100,000
- Vantage score of at least 701 or higher for each applicant
- Background Check
- 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.
- Dealer/Wholesaler License Application
- Dealer/Wholesaler License Application Addendum
- Pre-licensing Education Certificate
- Mastery Exam
- Verification of Fingerprints
- Colorado Motor Vehicle Dealer Bond
- Secure Verifiable Identification – Proof of Lawful Presence
- Affidavit – Restriction on Public Benefits
- Statement of Financial Condition for the applicant and all owners
- Business Documents
- Business Plan
- Location Lease
- Place of Business Affidavit
- Franchise Agreement
- Dealer Plate Affidavit
- Sales Tax License
- UCC Retail Business Requirements
- Written Correspondence
- Pay Fee(s)
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.
The cost of the Colorado Motor Vehicle Dealer Bond will be a small percentage (usually around 1%) of the bond amount.
How to Obtain a Colorado Motor Vehicle Dealer Bond
At Surety1.com, we make it easy to obtain this surety bond. our simple three step process is:
- Complete the easy to navigate and secure online application. 1
- Review the free, no obligation quote from one of Surety1’s professional surety bond agents, usually within one business day.
- 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.