What Is the Colorado Motor Vehicle Dealer Bond?
Think of the Colorado motor vehicle dealer bond as a promise to your buyers and the state. Wrong a customer, and they can claim against the bond. You then repay the surety.
Here is what Colorado requires:
- Dealers: $50,000.
- Each salesperson: $15,000.
The salesperson bond is separate from the dealer bond.
Who Needs This Bond in Colorado?
- Dealers who sell to the public in Colorado must post the bond to be licensed.
- Wholesale and auction dealers are usually covered too.
- You keep the bond active each term.
How to Get Bonded — Step by Step
- Gather your Colorado dealer paperwork.
- Buy your motor vehicle dealer bond online here — same-day issuance for many.
- Send it to the Colorado Motor Vehicle Dealer Board.
- Get your dealer license and sell cars.
Renewal & Continuous Bond Coverage
Plan to renew your Colorado dealer bond every year. Line it up before the deadline so your license never drops.
Frequently Asked Questions
Do Colorado salespeople need their own bond?
Yes. Each licensed salesperson needs a separate $15,000 bond, on top of the dealer bond.
Does the Colorado bond protect me?
No. The bond protects your customers and the state, not you. If a claim is paid, you repay the surety. It is not insurance for you.
How fast can I get bonded in Colorado?
Most quotes come back fast, often within a day. Many bonds are issued the same day for good credit.
How much does the bond cost?
You pay a yearly premium — a small percent of the bond amount. Your rate depends mostly on your credit.
How a Surety Bond Works
A dealer bond is a type of surety bond. The picture below shows the three parties and what happens if someone files a claim.
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Start Your ApplicationRelated: All Colorado surety bonds · What is a surety bond? · How surety bond costs are calculated