Who needs Colorado Auto Dealer Bonds?

Colorado requires an auto dealer bond for businesses applying for or renewing a motor vehicle dealer license. This includes new and used motor vehicle dealers, wholesalers, powersports dealers, and motor vehicle auction dealers.

The bond is part of the licensing process through the Colorado Motor Vehicle Dealer Board. You must have the bond in place before your license can be issued or renewed.

This bond helps ensure that dealers operate according to Colorado’s dealer regulations and handle transactions honestly. If a dealer violates licensing rules or causes financial harm through unlawful conduct, a claim can be filed against the bond for compensation.

How much do Colorado Auto Dealer Bonds cost?

Colorado requires a $50,000 auto dealer bond.

Most dealers do not pay the full $50,000. Instead, you pay a small percentage of that amount as your premium. In Colorado, rates typically range from 1% to 3% of the bond amount, depending on your credit profile, financial background, and industry experience.

Applicants with strong credit generally qualify for lower rates. If your credit is challenged, your rate may be higher, but options are still available.

How do I get a Colorado Auto Dealer Bond?

Getting your Colorado auto dealer bond is a straightforward process:

  • Complete a short bond application.
  • Provide basic business and personal information for review.
  • Receive a quote based on your credit and background.
  • Pay the premium.
  • Receive your bond for filing with the state.

The bond must be submitted as part of your dealer license application. In addition to the bond, Colorado requires completion of an approved pre-licensing education course, passing the required exam, submitting background checks and fingerprint verification, and paying all licensing fees before your dealer license will be issued.

Can I get a Colorado Auto Dealer Bond with bad credit?

Yes, you can still qualify for a Colorado auto dealer bond with bad credit.

Your rate will be based largely on your credit history and overall financial profile. While stronger credit usually results in lower premiums, many dealers with credit challenges are still approved at higher rates. The key difference is the cost, not eligibility.

If you’ve had past credit issues, it’s still worth applying to see what options are available.

How fast can I get Colorado Auto Dealer Bonds?

Most Colorado auto dealer bonds can be approved the same day once a completed application is received.

After payment is made, the bond can typically be issued immediately so you can move forward with your licensing process without delay.

Are there any local requirements?

This bond requirement applies statewide in Colorado under the Motor Vehicle Dealer Board. The required bond amount is the same across the state for all qualifying dealer types.

If you’re unsure which bond you need, BOSS Bonds can review your licensing paperwork and help identify the correct bond at no cost.