State of Colorado - Bond Of Motor Vehicle Dealer (Powersports, Wholesaler, Wholesale Auction Dealer)
Required for Colorado powersports, wholesale, and wholesale auction motor vehicle dealers to obtain and maintain their dealer license from the state.
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About This Bond
The State of Colorado Motor Vehicle Dealer Bond is a surety bond required for powersports dealers, wholesale dealers, and wholesale auction dealers operating in Colorado. This bond ensures compliance with state regulations governing motor vehicle sales and protects consumers and the state from potential violations of dealer licensing requirements.
Powersports dealers, wholesale motor vehicle dealers, and wholesale auction dealers must obtain this bond as part of their licensing requirements with the State of Colorado. The bond amount varies based on the type of operation: $5,000 for dealers selling only utility trailers weighing less than 2,000 pounds, and $50,000 for other qualifying dealer operations.
This bond protects the State of Colorado and consumers from financial losses that may result from the dealer's failure to comply with state motor vehicle dealer laws and regulations. The bond provides recourse for damages caused by fraudulent practices, failure to transfer titles properly, or other violations of Colorado motor vehicle dealer statutes.
The bond term is one year and must be renewed annually to maintain active dealer licensing status. Dealers must maintain continuous bond coverage throughout their licensing period to remain in compliance with Colorado state requirements.
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At a glance
Colorado Auto Dealer Bond Key Facts
Governed by C.R.S. § 44-20-112.
The basics
What Is an Auto Dealer Bond in Colorado?
A Colorado auto dealer bond is a surety bond you must file with the Colorado Department of Revenue Auto Industry Division (the Motor Vehicle Dealer Board) to get or renew a motor vehicle or powersports dealer or wholesaler license. The amount is $50,000 for motor vehicle dealers, used motor vehicle dealers, wholesale motor vehicle auction dealers, business disposers, and wholesalers, and $5,000 for dealers who sell only small utility trailers under 2,000 pounds. Colorado requires the bond under Colorado Revised Statutes section 44-20-112.
Good to know - Required for every Colorado motor vehicle and powersports dealer or wholesaler license; the amount is set by license type. Motor vehicle dealers, used motor vehicle dealers, wholesale motor vehicle auction dealers, business disposers, and wholesalers post $50,000; dealers who sell only small utility trailers weighing less than 2,000 pounds post $5,000. Motor vehicle salespersons file a separate $15,000 bond under C.R.S. § 44-20-113.
The bond is a promise that you will run your dealership honestly — that you will not commit fraud, make fraudulent statements, or break Colorado’s motor vehicle dealer laws. The bond runs to the people of the State of Colorado, and it must be approved as to form by the Colorado Attorney General.
If you defraud a retail customer or break those rules and cause a financial loss, that person can file a claim against your bond, up to its full amount. The bond protects the public, not you: if the surety company pays a claim, you must pay the surety back.
Colorado dealer bonds must stay on file without a lapse the whole time you are licensed. Colorado uses a continuation certificate to keep the bond active when you renew, so you keep it in force to keep your license active.
Qualification
What You Need to Qualify for a Colorado Auto Dealer Bond
Approval depends on your dealer license type, required coverage amount, and underwriting factors such as credit.
- You are applying for, or renewing, a Colorado motor vehicle or powersports dealer or wholesaler license with the Auto Industry Division (Motor Vehicle Dealer Board).
- You know your license type — motor vehicle dealer, used motor vehicle dealer, wholesale motor vehicle auction dealer, business disposer, or wholesaler — because it sets your bond amount ($50,000 for most; $5,000 if you sell only small utility trailers under 2,000 pounds).
- Your bond is written by a corporate surety licensed to do business in Colorado, on the form approved by the Colorado Attorney General, naming the people of the State of Colorado.
- You can keep the bond continuous — it stays on file with no lapse and renews with a continuation certificate.
- Each owner, partner, member, or officer has an Experian Vantage credit score of at least 675.
- You can show a total net worth of $100,000, of which at least $25,000 is liquid assets (cash, bonds, or stocks).
Step by step
How to Get an Auto Dealer Bond in Colorado: Step by Step
Choose your Colorado dealer license type
Decide which license you need — motor vehicle dealer, used motor vehicle dealer, wholesale motor vehicle auction dealer, business disposer, or wholesaler. Your license type sets your bond amount: $50,000 for these dealer and wholesaler licenses, or $5,000 if you sell only small utility trailers that weigh less than 2,000 pounds.
Complete your Dealer/Wholesale License Application
Download and fill out the Dealer/Wholesale License Application (DR 2109). Complete the Addendum (DR 2109B) for each owner, partner, member, or officer so the Division can review everyone with an ownership interest.
Dealer/Wholesale License Application (DR 2109)Meet Colorado’s dealer qualification requirements
Gather what the Motor Vehicle Dealer Board requires: pre-licensing education where it applies, the mastery exam and Examination Affidavit (DR 2097) for owners who sell, an Experian Vantage credit score of at least 675 for each applicant, and proof of a $100,000 total net worth with at least $25,000 in liquid assets.
Get your Colorado dealer bond
Buy your bond for the amount your license type requires and we handle the form. We issue your Colorado dealer bond on the official Bond of Motor Vehicle Dealer / Powersports Vehicle Dealer form (DR 2830) and, in most cases, file it with the Auto Industry Division for you. There is no bond form for you to download or sign.
File your application, bond, and fees
Submit your completed Dealer/Wholesale License Application and addenda, your issued bond, and your supporting documents to the Auto Industry Division, and pay the state fees from the Division’s fee schedule (DR 2246).
Keep your bond continuous
Keep your bond on file without a lapse for as long as you are licensed. Colorado uses a continuation certificate to keep the bond active when you renew, so renew before it expires — your dealer license cannot stay active without the bond in force.
Paperwork
Colorado Dealer Bond Forms & Documents
The official dealer bond form — we issue this for you and, in most cases, file it with the Auto Industry Division. You do not download or complete it.
View formThe dealer/wholesaler license application you complete and submit to the Division.
View formCompleted for each owner, partner, member, or officer.
View formThe Division’s full forms library, including the Examination Affidavit (DR 2097), Affidavit – Restrictions on Public Benefits (DR 4679), and the fee schedule (DR 2246).
View formYou'll also need
Cost
How Colorado Auto Dealer Bond Pricing Works
You do not pay the full bond amount. Colorado sets the bond by license type — $50,000 for most dealers and wholesalers, or $5,000 for small-utility-trailer-only dealers. That figure is the coverage, the most a claim can collect.
You pay a premium, which is a small percentage of your bond amount. Underwriting sets your rate, mostly from your personal credit. The premium is separate from the Division’s license fees.
Worked example
If you open a used car dealership, your bond is $50,000. You do not pay $50,000 — you pay a premium on it, often a few hundred dollars a year for well-qualified applicants. A small-utility-trailer-only dealer’s bond is $5,000, so the premium is lower.
Filing
Filing Information
Colorado Department of Revenue, Auto Industry Division (Motor Vehicle Dealer Board); the bond runs to the people of the State of Colorado
Filing notes
Colorado names the people of the State of Colorado on the bond and requires it on the official Bond of Motor Vehicle Dealer / Powersports Vehicle Dealer form (DR 2830), approved as to form by the Colorado Attorney General. We issue your bond on that form.
The bond must stay on file without a lapse the whole time you are licensed; Colorado uses a continuation certificate to keep it active at renewal, so renew it on time.
File the bond with your Dealer/Wholesale License Application (DR 2109) and fees with the Auto Industry Division. In most cases we file the issued bond with the Division for you.
FAQ
Colorado Auto Dealer Bond FAQ
Yes. Every Colorado motor vehicle or powersports dealer or wholesaler license requires a surety bond, filed with the Auto Industry Division under Colorado Revised Statutes section 44-20-112. The amount depends on your license type.
It is $50,000 for motor vehicle dealers, used motor vehicle dealers, wholesale motor vehicle auction dealers, business disposers, and wholesalers. It is $5,000 for dealers who sell only small utility trailers weighing less than 2,000 pounds.
It depends on your license type. If you sell motor vehicles as a dealer or wholesaler, you need the $50,000 bond. If you sell only small utility trailers under 2,000 pounds, your bond is $5,000.
Your bond must stay on file without a lapse the whole time you are licensed. Colorado uses a continuation certificate to keep the bond active when you renew, so you keep it in force to keep your license active.
We issue your bond on the official Bond of Motor Vehicle Dealer / Powersports Vehicle Dealer form (DR 2830), which is approved as to form by the Colorado Attorney General, and in most cases we file it with the Auto Industry Division for you. There is no bond form for you to complete.
Yes, separately. A motor vehicle salesperson must file a $15,000 bond under Colorado Revised Statutes section 44-20-113. That is in addition to the dealer or wholesaler bond the dealership posts.
You pay a premium, not the full bond amount. The premium is a small percentage of your bond amount, based mainly on your credit. Start a quote to see your rate.
The Colorado Department of Revenue, Auto Industry Division (the Motor Vehicle Dealer Board). You can reach the Division at 303-205-5604 or dor_dealers@state.co.us.
Sources
Last verified 2026-06-30. Requirements change - confirm current details with Colorado Department of Revenue, Auto Industry Division (Motor Vehicle Dealer Board); the bond runs to the people of the State of Colorado before you file. This page is informational and not legal advice.
FAQ
Colorado Auto Dealer Bond Questions
The cost of a Colorado auto dealer bond is usually a small percentage of the state-required bond amount. Your exact premium depends on the bond amount, license type, business details, and underwriting factors such as credit.
Many auto dealer bonds can be issued the same day after you complete the application. Larger bond amounts or applications that need underwriting review may take longer.
Requirements vary by license type, but most Colorado auto dealers need to complete a short application and purchase the bond amount required by the state before their license can be issued or renewed.
Often, yes. Many states have separate bond requirements for wholesale, retail, broker, or other dealer license types. Choose the bond that matches your Colorado license instructions.
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AutoDealersBond.com is operated by Shield Liability Insurance Agency, a California and Texas licensed insurance agency (CA License #6018195, TX License #3446536). Shield Liability Insurance Agency is not an insurance carrier and does not underwrite bonds or insurance policies. Bond and coverage availability, pricing, and issuance are subject to carrier underwriting approval, eligibility, applicable state requirements, and policy or bond terms. Availability varies by state.
