The process of obtaining an auto dealer license in Colorado can be a little complicated. Fortunately, this guide will take you through every step required. Remember, you must apply annually for an auto dealer license through the Motor Vehicle Dealer Board (MVDB). The MVDB will handle every aspect of the licensing process.
Determine Which Type of License You Need:
- New Motor Vehicle Dealer
- Used Motor Vehicle Dealer
- Wholesale Dealer
- Wholesale Auction Dealer
- Buyer Agent
Check to See if You Qualify
There are a few qualifications that you must meet before you apply for your license:
- Prove you have a personal worth of at least $100,000
- Have a Vantage score of at least 701 or higher
- Successfully pass a background check
Note: If the applicant has ever been convicted of or pled no contest to any felony or misdemeanor, all crime-supporting court documents must be included with the application.
Compile the Required Documents
You will need to prepare supporting documentation to send in with your license application:
- Addendum (DR 2109B) for each owner, director, officer, partner, stockholder (at least 5%), and LLC/LLP member
- Pre-Licensing Education Certificate. You need to complete an education program conducted by an approved provider (mandatory for applicants who haven’t held a dealership license within the last 3 years).
- Mastery Examination Affidavit (DR 2097). If you have not been licensed within the last year, you have to complete the online Mastery Exam.
- Copy of photo ID for yourself and anyone who filled out an Addendum (DR 2109B).
- Affidavit – Restriction on Public Benefits (DR 4679) for all owners, partners, members or officers.
- Statement of Financial Condition (DR 2114) for the applicant and all owners. This proves that your business will be funded.
- Place of Business Affidavit (DR 2044). You will also need to attach pictures of your location and business sign.
- Colorado Sales Tax Withholding Account Application (CR 0100AP). You will also need to include a copy of the sales tax license and proof of trade name registration.
- Dealer Plate Affidavit (DR 2640).
- Business Plan
- A copy of your lease (if applicable)
- Franchise Agreement (if applicable)
If filing as an LLC/LLP/Corporation, you may be required to submit additional documents:
- Certificate of Good Standing from the Colorado Secretary of State
- Constituent Filed Document
- Bylaws/Operating Agreement
- Trade Name
Obtain Your Auto Dealer Bond
The cost of an auto dealer bond is a small percentage of the total bond amount. The bond cost varies depending on your financial strength, e.g. personal credit.
- Fill out our online application form to obtain a free bond quote for your auto dealer license. It takes 5 minutes and you will be able to lock your rate for the next 90 days (in case you want to purchase the bond).
ll dealers must obtain a bond to get licensed.
Bond Amount Required:
- $50,000 for most applicants
- $5,000 for small trailer dealers (trailers weighing less than 2000 pounds)
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Submit Your Dealer License Application
The dealer/wholesale license application (DR 2109) is available online.
- License Fee: $479 (payable to the Department of Revenue)
Note: For full details check the Auto Industry Division at the Colorado Department of Revenue
Collect and fill out all the required documents and mail them along with a copy of your bond to:Department of Revenue Auto Industry Division 1881 Pierce St., #112 Lakewood, CO 80216
If your application is accepted, the MVDB will mail you the official license.