Colorado Auto Dealer Bond 

Known as the most beautiful US state, Colorado boasts magnificent and diverse scenery of mountains, deserts, rivers and plains. The Centennial State has seen an influx of people moving from the Northeast. The mountainous and vast swap of land of Colorado makes roadtrips an everyday hobby for most Coloardians. Therefore, being an auto dealer in Colorado can be very profitable. To become an auto dealer in Colorado, you are required to post a $50,000 motor vehicle dealer surety bond. 

The Colorado Department of Revenue Motor Vehicle Dealer Board stated in Regulation 44-20-112 that a license can’t be issued until the applicant has a bond in the correct amount. The bond is used to ensure that the public will receive compensation for any financial harms if any bonded dealers commit fraud.  


  • Who Needs It: all individuals that sell, buy, repair, and service motor vehicles, powersports vehicle in the state of Colorado
  • Bond Amount: $50,000 for all motor vehicle dealers; $15,000 for motor vehicle salesperson employed by a dealer
  • Cost: Starts at $100 for one year, exact price depends on the credit score of the applicant

To get a quick quote, you can click on the “Quote” button below.

Colorado Auto Dealer Bond Form
Colorado Auto Dealer Bond Form

Colorado Auto Dealer Bond FAQs

What Are Some Classifications of Dealers that Need this Bond? 

The Colorado Department of Revenue requires everyone who buys, sells, repairs and services for business to be bonded. However, Colorado classifies all dealers into a few categories: 

  • Motor Vehicle Dealers
  • Powersports Vehicle Dealers
  • Used Motor Vehicle Dealers
  • Used Powersports Vehicle Dealer
  • Wholesaler 
  • Wholesale Motor Vehicle Auction-Dealer
  • Business Disposal Dealer

Can I Electronically File My Bond? 

No, you need to mail the completed bond form and the power of attorney to the following address

Department of Revenue
Auto Industry Division 
P.O. Box 17087 
Denver, CO 80217-0087

How to Ensure My Bond is Accepted by the State? 

Since you need to file your bond by mail to the Colorado Department of Revenue, it is important to make sure you have the bond that will be accepted by the state to avoid any delays. On the bond, there are many blank fields that need to be filled out correctly. Here are a few things to keep in mind: 

  • Ensure your surety company is using the state approved bond form (attached above)
  • Ensure that all blanks on the bond form are filled out correctly 
  • Bond Number
  • Legal name of the company exactly as written on your license application, includes the DBA
  • Address of the company exactly as written on your license application
  • Legal name of the surety company registered with the state 
  • Types of dealers (Choose from “Motor Vehicle Dealer”, “Powersports Vehicle Dealer”, “Used Motor Vehicle Dealer”, “Used Powersports Vehicle Dealer”, “Wholesaler”, “Wholesale Motor Vehicle Auction-Dealer” or “Business Disposal Dealer”)

If I Have Questions About My License, Who Should I Contact?

The Auto Industry Division of the Department of Revenue of the State of Colorado is the official liaison between the state and the motor vehicle dealers. If you have any questions, you can reach out to the Auto Industry Division by calling 1 (303) 205-5604 or emailing  

Will the Bond Ever Expire? 

The bond has a common expiration date of June 30 of each year. Generally, the surety company will provide you with the bond at least 10 days before the expiration date of your bond to ensure your bond is mailed out to the Colorado Department of Revenue on time

Can I Get a License Without a Bond? 

Colorado regulation 44-20-112 states that you can procure and file a saving account, deposit or certificate of deposit in the amount of the bond. If you are a motor vehicle dealer, you would need a savings account, deposit or certificate of deposit of $50,000. If you are a salesperson, you would need a savings account, deposit or certificate of deposit of $15,000.  

What Types of Actions Will Trigger a Bond Claim? 

The bond is meant to provide compensation to those harmed by the bonded dealer as a result of doing business with the bonded dealers. Some of the actions below could lead to a claim being filed on the bond: 

  • Defraud any buyer, seller, motor vehicle salesperson or financial institutions for your own benefits
  • Intentional or negligent failure to perform written agreement with any buyer or seller
  • Intentionally publishing or circulating misleading or inaccurate advertising resources to end users
  • knowingly purchasing, selling or acquiring of a stolen vehicle 

Note that the actions below are some examples of claim-triggering actions. There are many other actions that could lead to a claim. To prevent claims, dealers should aim to run their dealership with the highest ethical standard, transfer titles to the buyer after each sale, and always pay fees and taxes in time to the state. 

How to Get a Colorado Auto Dealer License? 

Step 1: meet the minimum net worth requirements of $100,000
Step 2: meet the minimum credit score requirements of 701
Step 3: complete a pre-licensing training course
Step 4: take an auto industry mastery exam
Step 5: Obtain a Certificate of Good Standing from the Colorado Secretary of State
Step 6: Obtain a sales tax license
Step 7: Get verification of fingerprints
Step 8: Make a business plan
Step 9: Take pictures of your business
Step 10: Complete the secure verifiable identification form
Step 11: Get a colorado motor vehicle dealer bond
Step 12: Complete the dealer application