You Need Auto Dealer Bonds in Colorado

In Colorado, the Department of Revenue requires auto dealers that sell more than 3 cars in a given year to purchase and maintain a $50,000 auto dealer bond during their time in business. This requirement is documented in the Colorado Revised Statutes 44-20-112 and governed by the Colorado Motor Vehicle Dealer Board. We have helped many Colorado dealers get bonded and licensed. Get started today below. Our forms take 3 minutes for an instant quote.

Please note this page is for car dealer licensing. If you're trying to register a vehicle with a missing title, a separate Lost Title Bond is required.

Motor Vehicle Dealer Bond

Bond Amount: $50,000

Required By: Colorado Motor Vehicle Dealer Board

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State Acceptance Guarantee
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Refund within 30 days
1 Year Bond Starts At
$230
*Based on credit and experience
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What’s the price?

Our rates for the $50,000 Colorado auto dealer bond starts at $230 for 1 year bond. This price is based on the applicant’s credit score. Generally speaking, a higher credit score equals lower prices. In some cases, we may be able to secure a lower rate if you are a more experienced car dealer.

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Colorado Auto Dealer Bond Common FAQs

Are there other types of vehicle bonds in Colorado?

Yes, there are a few other types of bonds in Colorado for specialized vehicle dealers and vehicle salespeople. We’ve listed them below:

  • Powersports vehicle dealers: Dealers who sell powersport vehicles, such as motorcycles, ATVs and snowmobiles are required to obtain a $50,000 bond. Our prices for this bond start at $250
  • Wholesalers and auction dealers: Dealers who run car auctions or sell to other dealers are required to obtain a $50,000 bond. Our prices start at $243
  • Vehicle & Powersport Vehicle Salesperson: Individuals who are employed to sell vehicles are required to obtain a $15,000 bond. Our starting price for this bond is $100
  • Franchise Small Trailer Dealers (under 2000 lbs): Dealers who sell franchise trailers are required to have a $5,000 bond. Our starting price for this bond is $100

Do I need a credit check for this bond?

Yes, insurance companies run a “soft” credit check to determine an applicant’s eligibility and rate. A “soft” credit check does not impact an applicant’s credit score.

How long does it take to get bonded? 

If you send your application before 4pm CST, we can (in most cases) get the bond done and sent back to you on the same day. However, there might be some cases where unexpected complications may arise due to a low credit score or previously occurred bond claims. In these cases, you can expect to receive the bond the next business day. 

How can I avoid claims against my bond?

You can minimize claims by following auto dealer guidelines established by the state of Colorado. This entails conducting your auto dealer business with honesty and transparency, and putting your customers' best interests first. Concretely, you must pay all fees and taxes associated with vehicle sales, and provide valid car titles to your customers. 

When will my bond expire?

This depends on the length of the bond purchased. The most common term for Colorado auto dealer bonds is 1 year. For a 1-year bond, it will end after 1 year from the start date. To maintain your license, you must renew it before the expiration date. If you choose to bond with us, we’ll keep track of when you need to renew your bond and take care of notifying you when it’s time for renewal.

What if I have poor credit?

Some insurance companies consider credit scores below 650 as "poor", and are hesitant to provide coverage to this segment. However, we work with insurance providers that concentrate on offering bonds to low credit individuals. If your credit score is not excellent, let us know, and we'll assist you by shopping around with the specialized carriers within our network. Our team has aided many individuals with less than ideal credit in fulfilling their bonding needs. 

How to prove that I’m bonded?

Upon approval of your bond, we will send you a PDF copy via email to serve as proof of your bonding. We keep copies of the bond on file in case the original is lost. If you need another copy, give us a call and we’ll email you an additional copy. 

How are Colorado auto dealer bonds priced?

The cost of a Colorado dealer bond is affected by various factors, such as the applicant's credit score, dealer experience, and the insurance company providing the bond. The most significant factor is an applicant's credit score, with the insurance company being the next most influential. While we cannot change your credit score, we partner with over 10 insurance companies to offer our clients highly competitive rates. We take pride in offering industry low rates, so if you happen to find a better rate elsewhere, let us know and we'll make every effort to match it.

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