Bonds Express offers a Colorado Motor Vehicle Dealer Bond with a high approval rate

Colorado Used Motor Vehicle Dealers are required under the Colorado Revised Statutes Section 12-6-512(1) to file a Colorado Motor Vehicle Dealer Bond as a condition of licensure.

Colorado requires a $50,000 motor vehicle dealer bond to obtain a dealer license. The bond protects customers and the state from dealer fraud, title problems, and unpaid taxes. Premiums run 1–3% of the $50,000 for good credit, or up to 10% for bad credit. The bond must be filed with the Colorado Auto Industry Division before a dealer license is issued.

Colorado’s $50,000 Dealer Bond Requirement

Colorado motor vehicle dealers must obtain a $50,000 dealer bond and file it with the Colorado Auto Industry Division. The bond:

  • Protects customers and the state from dealer fraud and misconduct
  • Covers failure to deliver clear title, odometer issues, and unpaid taxes/fees
  • Must be in place before the dealer license is issued
  • Applies to new and used vehicle dealers, with used dealers being the most common

How Much Does a Colorado Auto Dealer Bond Cost?

Premium is a percentage of the $50,000, driven by credit:

Credit profile Premium rate
Standard credit 1-3%
Sub-standard credit 3-10%

The $50,000 amount maps to the $50,000 surety bond page. Get the Colorado used motor vehicle dealer bond directly. For full pricing, see the surety bond cost guide.

Getting a Colorado Dealer Bond with Bad Credit

Colorado dealer bonds are obtainable with bad credit through specialty programs — premiums run higher but approval is usually available. See bad credit surety bonds and how to get bonded with bad credit.

What the Bond Covers

  • Fraud or misrepresentation in vehicle sales
  • Failure to deliver clear title to buyers
  • Odometer tampering or rollback
  • Failure to remit sales taxes or registration fees collected from customers

How to Get a Colorado Auto Dealer Bond

  1. Confirm the $50,000 requirement and any form with the Colorado Auto Industry Division.
  2. Apply. Provide business information, company owner information, and authorize a credit check.
  3. Get your quote and pay. Good credit, often same-day; bad credit may take 24–48 hours.
  4. File with the Auto Industry Division. Submit with your dealer license application.

See more Colorado bonds at the Colorado state bonds hub.

Frequently Asked Questions

How much is a Colorado auto dealer bond?
Colorado requires a $50,000 motor vehicle dealer bond. You pay a premium of 1–3% of that amount. You pay the premium, not the full $50,000.
What is the auto dealer bond requirement in Colorado?
Colorado requires a $50,000 motor vehicle dealer bond filed with the Colorado Auto Industry Division. It must be in place before your dealer license is issued and applies to new and used vehicle dealers.
What does a Colorado auto dealer bond cover?
It protects customers and the state from dealer fraud, failure to deliver clear title, odometer tampering, and failure to remit sales taxes or fees collected from buyers. Harmed parties file claims against the bond.
Can I get a Colorado auto dealer bond with bad credit?
Yes. Specialty programs cover most credit profiles. The premium runs higher (toward 10% of the $50,000), but approval is usually available even with poor credit or a past bankruptcy.
How long does a Colorado auto dealer bond last?
Most run for one year and renew annually alongside the dealer license. Confirm the exact term with the Colorado Auto Industry Division, as it aligns with your dealer registration cycle.
How fast can I get a Colorado auto dealer bond?
Good-credit applicants often get same-day issuance. Bad-credit applications may take 24–48 hours. The bond is delivered by email, with a hard copy mailed if the Division requires the original.
Do I pay the full $50,000 for the bond?
No. You pay only the premium — 1–3% of $50,000 for good credit. The $50,000 is the coverage amount, the maximum the surety would pay on a valid claim.
Who requires the Colorado auto dealer bond?
The Colorado Auto Industry Division requires it as a condition of holding a motor vehicle dealer license. The bond protects the state and consumers from dealer misconduct.

REQUEST A QUOTE

A surety bond protects the party requesting the bond, the Obligee, against any financial losses as a result of poor financial decisions, damages, unethical decisions, or a failure to follow state and local laws on the part of you, the Principal.  The Colorado Motor Vehicle Dealer (Powersports, Wholesaler, Wholesale Auction Dealer) Bond holds you accountable for your business decisions.

By possessing a Colorado Motor Vehicle Dealer (Powersports, Wholesaler, Wholesale Auction Dealer) Bond, you are telling your Obligee that you can be trusted as a Principal and that you stand behind your business decisions.