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.
Bond Amount: $50,000
Required By: Colorado Motor Vehicle Dealer Board
Yes, there are a few other types of bonds in Colorado for specialized vehicle dealers and vehicle salespeople. We’ve listed them below:
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.
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.
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.
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.
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.
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.
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.
