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
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.