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Colorado Motor Vehicle Dealer Bond

Who needs a Colorado Motor Vehicle Dealer Bond?

All licensed motor vehicle dealers, used motor vehicle dealers, powersports vehicle dealers, used powersports vehicle dealers, wholesalers, and wholesale motor vehicle auction dealers are required to maintain a Colorado Motor Vehicle Dealer Bond by the State of Colorado. The bond is required as part of your dealer license application.

Why is the Colorado Motor Vehicle Dealer Bond required?

The Colorado Motor Vehicle Dealer Bond helps ensure that dealers conduct business ethically and lawfully.

How do I know this is the required bond for my business?

You may have heard this bond referred to as a Colorado DMV Bond, Dealer Bond, Dealer License Bond, Car Dealer Bond, Auto Dealer Bond, Powersports Dealer Bond or Wholesale Dealer Bond. While people use many names, they refer to the same bond. If you are a motor vehicle dealer in the State of Colorado, this bond is required to obtain your license.

General Questions
What is a surety bond? 
What is a surety bond?

A surety bond is a three-party agreement among a principal, an obligee, and a surety.

The bond formalizes the principal's obligation to the obligee. The surety guarantees that the principal will fulfill their obligation.