SURETY SOLUTIONS BLOG

Don't know where to start? Start here: "What Is A Surety Bond?"  

 

7 Steps: How To Get A Colorado Dealer/Wholesale License

By Jud Webre on Mar 30, 2017 2:01:00 PM in

Auto Dealer Bonds

how to get a colorado dealer license

 

The Colorado Motor Vehicle Dealer Board is the State licensing authority for all Colorado Dealer/Wholesale Licenses. If you plan on selling more than 3 vehicles in a year, then you will need to get a Colorado Dealer/Wholesale License.

Not sure if you need a dealer license? Check out this post on selling cars without a license.

Looking for a Dealer Bond quote? Free Colorado Motor Vehicle Dealer Bond Quote 

 

 

 

How to get a Colorado Dealer License

 

To get a Colorado Dealer License, you will need to: complete a license application, meet requirements, purchase a surety bond, and pay all licensing fees. The exact steps are listed below.

 

Step #1: Check to see if you qualify

Applicants should meet the following criteria:

  • Have a net worth of at least $100,000
  • Have a vantage score of at least 701 through Experian
  • Pass a criminal background check, or provide supporting court documents if you have been convicted of a felony or misdeanor

Worried about a previous felony? Check out this post on "Getting Licensed With a Felony".

Colorado states you cannot hold a license if you have been convicted of a felony within the last 10 years if that felony falls into one of the following categories: View the categories.

 

Step #2: Complete Colorado Dealer Application

View the Colorado Dealer License Application.

Be sure to apply for the correct license type:

  • Franchise Dealer (new vehicles)
  • Used Dealer (used vehicles)
  • Wholesaler (sell to other licensed dealers)
  • Wholesale Auction (conduct wholesale auctions)

 

Step #3: Complete Requirements

An application for a Colorado Dealer/Wholesale License must include the following information:


*Get your licensing training from Colorado IADA (Colorado Independent Auto Dealer Association) by calling 303-239-8000

The following information might be also be required with your application:

  • Certificate of Good Standing from Colorado Secretary of State
  • Constituent filed document
  • Bylaws/Operating agreement 
  • Trade name
  • A copy of your lease
  • Franchise agreement

For detailed information on how to complete the above information, you can visit the Colorado Dealer and Wholesaler page at the CO Department of Revenue site. 

If you have any questions, contact the Auto Industry Division at 303-205-5604.

 

Step #4: Purchase $50,000 Colorado Motor Vehicle Dealer Bond

You will not need to pay $50,000 to get bonded. 

To see how much you'd pay for a bond, get a free quote below:

 

Free Colorado Motor Vehicle Dealer Bond Quotes

 

About the Bond:

A Colorado Motor Vehicle Dealer bond is a type of surety bond that protects your customers from dishonest or unethical actions during a business transaction. You must have a CO Motor Vehicle Dealer Bond before you can get a Colorado Dealer License.

Not sure how to get an CO Vehicle Dealer Bond? Use this interactive tool to help you out.

Once you purchase your Colorado Motor Vehicle Dealer Bond from the surety bond company, they will mail your bond to you. 

 

Step #5: Pay licensing fees

  • Original Dealer/Wholesaler License: $455

Need more information about the fees? View License Fee Schedule.

 

Step #6: Mail paperwork 

Include all paperwork from Step #2 and Step #3. Also include your Colorado Motor Vehicle Dealer Bond, plus licensing fee. Send to the address below:

Department of Revenue
Auto Industry Division
1881 Pierce St., #112
Lakewood, CO 80216

 

**Note: All documents shall be on 8.5" x 11" size paper. Do not submit double sided copies. Do not staple. Do not submit legal-size copies. 

 

Step #7: Wait on decision 

Upon approval, you will be mailed your Colorado Dealer/Wholesale License.

Any license issued by the Colorado Motor Vehicle Dealer Board may be denied, suspended, or revoked if a material misstatement is made in an application for a license.

A “Material Misstatement” means any false or misleading statement, omission, or misrepresentation regarding personal identification information, employment history, prior occupational licensing history, criminal background and history, including filings, indictments, municipal, misdemeanor, and/or felony convictions and deferred judgments.

If you have any questions, contact the Auto Industry Division at 303-205-5604.

 

Colorado Dealer/Wholesale Dealer License Period

 

The License period is one year long and runs from July 1st through June 30th.

All licenses expire on June 30th regardless of when your license was issued. Therefore, apply or renew your license at the appropriate time every year to maximize the licensing period.

View renewal information.

 

View our FREE EBOOK:

 

Related Articles:

How To Get An Auto Dealer Bond

Motor Vehicle Dealer License FAQ