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How much does a certificate of title bond cost in Colorado?
The cost of a certificate of title bond starts at $100, and it is based on the appraised value of the vehicle. In Colorado, the bond amount must be double the appraisal value of the vehicle, which is determined by the Tax Division of the Department of Revenue.
If the bond amount is $6,000 or less, you can get your title bond issued instantly online for $100. For titles between $6,001 and $25,000, surety bonds start at $100 and increase at a rate of $10 per $1,000 of coverage. Title bond amounts between $25,001 and $50,000 are issued at a rate of $15 per every $1,000 of coverage. If your bond amount is greater than $50,000, the cost of your bond is subject to underwriting, meaning the cost is based on a review of the applicant’s qualifications.
Why do I need a bond for certificate of title in Colorado?
A Colorado bond for certificate of title is required if an individual does not physically possess the title to his or her newly purchased vehicle. If the previous or new owner is unable to prove ownership of the vehicle due to lost, stolen, or defective documentation, he or she may purchase a surety bond to receive a bonded title. By posting this bond, car owners guarantee that the vehicle was not stolen or sold or acquired under fraudulent circumstances.
Please note this bond is required for a vehicle title to be issued. If you are planning to sell cars and other vehicles, a Colorado motor vehicle dealer bond is required.
How do I apply for a title bond?
To apply for a title bond, applicants in Colorado must know the make, model, year, and vehicle identification number of the vehicle. The applicant must also know the appraised value of the vehicle.
Colorado certificate of title bonds remain valid for three years from the date of issuance.
How to get a bonded title in Colorado
There are a few steps to follow to successfully recover a title, but if the applicant completes each step, the new buyer will legally be able to purchase and title the vehicle. To see full details of each step, view the State of Colorado Title Or Salvage Title Established By Surety Bond process sheet.
An outline of the steps to be taken by the applicant include:
- Have the motor vehicle inspected and a Certified VIN Inspection form (DR 2704) completed by a certified P.O.S.T. inspector. The inspection fee is $50.
- Complete a Motor Vehicle Requestor Release Affidavit of Intended Use (DR 2489A)
- Request a Colorado Title Record Search form, and if a prior title holder is found, attempt to contact them via mail and submit proof through PS Form 3811-A. This search will also reveal if there are active liens on the vehicle, which must be released before completing the bonded title application
- Get the motor vehicle appraised through price guidebooks, computerized valuation services, or with a licensed Colorado automotive dealer
- Obtain your title bond based off of the appraised value of the vehicle
- Complete the Bond Statement Guide & In Lieu of Bond Affidavit form (DR 2394)
- Submit finalized papers and application package to the local DMV and apply for the title, which will be provided once the application is approved by the DMV
For more information regarding the Colorado bonded title process, contact the Colorado Department of Revenue Division of Motor Vehicles.