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Colorado Motor Vehicle Dealer Bonds

Colorado Motor Vehicle Dealer Bond Information

The Colorado Motor Vehicle Dealer Board requires that those engaged in the following business activities post surety bonds in the amount of $50,000.

  • Used Motor Vehicle Dealers
  • New Motor Vehicle Dealers
  • New Powersports Vehicle Dealers
  • Used Powersports Vehicle Dealers
  • Vehicle Wholesalers
  • Wholesale Motor Vehicle Auction-Dealers
  • Motor Vehicle Buyer Agent Bonds

Motor vehicle or powersports vehicle salespersons may also be required to furnish a separate $15,000 surety bond.

How Much Does a Motor Vehicle Dealer Bond Cost in Colorado?

Most Common Bonds

Used Motor Vehicle Dealer Bond

$50,000 Bond

Wholesaler Bond

$50,000 Bond

Wholesale Motor Vehicle Auction Bond

$50,000 Bond

Additional Bonds

Powersports Vehicle Dealer Bond

$50,000 Bond

Get a Free Quote Takes 2 Minutes
Motor Vehicle Salesperson Bond

$15,000 Bond

1-Year Bond

Buy Now - $150.00 Instant Purchase
New Motor Vehicle Franchise Dealer Bond

$50,000 Bond

Get a Free Quote Takes 2 Minutes
Motor Vehicle Buyer Agent Bond

$5,000 Bond

1-Year Bond

Buy Now - $100.00 Instant Purchase

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What Does a Motor Vehicle Dealer Bond Protect Against?

The bond ensures lawful business practices and compliance with rules and regulations set out in 12-6 of the Colorado Revised Statutes. The bond protects third parties that may be harmed financially by fraud, fraudulent representation or other unlawful business practices of the bonded principal.

In a situation where the bonded customer (principal) fails to comply with surety bonding terms and requirements, the surety company is financially obligated to cover damages up to the bond amount or penal sum of the bond. As with all surety bonds, the principal agrees to indemnify the surety for any such losses paid to third parties.

Getting Your Colorado Business License or Registration

The following is an overview of the key motor vehicle dealer licensing requirements in Colorado.

  • Completed Application (DR 2109)
  • License Fee
  • Pre-Licensing Education Certificate
  • Mastery Examination Affidavit (DR 2097)
  • Surety Bond
  • Secure Verifiable Identification
  • Statement of Financial Condition
  • Certificate of Good Standing
  • Business Plan
  • Photographs of Location
  • Dealer Plate Affidavit (DR 2640)
  • Sales Tax License
  • Additional items may be needed and exact requirements may vary based on applicant, license type or obligee discretion. Please see obligee and state links in the Other Helpful Information and Links section below or contact the obligee directly for more information.