How much does an auto dealer bond cost in Colorado?
Colorado car dealer surety bonds are required by the Colorado Motor Vehicle Dealer Board and must be in the amount of $50,000. SuretyBonds.com offers these bonds for different costs depending on a review of each applicant’s credit report.
Don’t let poor credit stop you from getting the bond you need! SuretyBonds.com offers an exclusive bad credit bonding program through which we approve 99% of applicants.
Ready to get bonded? Give us a call at 1 (800) 308-4358, or fill out an online bond request now!
|Bond Type||Bond Amount||Cost by Credit Score*|
|680 and up||679 - 600||599 or lower|
|Motor Vehicle Dealer Bond||$50,000||Starts at $450||$2,500-$5,000||$5,000+||Apply Now|
|Used Motor Vehicle Dealer Bond||$50,000||Starts at $450||$2,500-$5,000||$5,000+||Apply Now|
|Powersports Vehicle Dealer||$50,000||Starts at $450||$2,500-$5,000||$5,000+||Apply Now|
|Used Powersports Vehicle Dealer Bond||$50,000||Starts at $450||$2,500-$5,000||$5,000+||Apply Now|
|Wholesaler Bond||$50,000||Starts at $450||$2,500-$5,000||$5,000+||Apply Now|
|Wholesale Motor Vehicle Auction-Dealer Bond||$50,000||Starts at $450||$2,500-$5,000||$5,000+||Apply Now|
Have questions about this surety bond type? Call SuretyBonds.com at 1 (800) 308-4358 or fill out our online bond request form to get started.
Why do I need this bond?
Colorado motor vehicle bonds guarantee that principals (motor vehicle dealers, powersports vehicle dealers, used motor vehicle dealers, used powersports vehicle dealers, wholesalers and wholesale motor vehicle auction-dealers) comply with the terms listed in 12-6-111(1) and 12-6-512(1) of the Colorado Revised Statutes during the term of the business license. Specifically, this bond prevents fraud and fraudulent representation at the hands of the principal.
Recovery under this bond is limited to the parties and priorities described in Colorado Revised Statutes 12-6-111(2)(a) and 12-6-512(2)(a) and is subject to the requirements of Colorado Revised Statutes 12-6-111(2)(b) and 12-6-512(2)(b).
Click here to apply for a Colorado auto dealer surety bond quote! Our surety experts work hard to get you bonded for the lowest price possible.
What’s the fine print?
Colorado motor vehicle dealer bonds can be continued from year-to-year with the issuance of a proper continuation certificate from the surety. This certificate must be delivered to the Director of Revenue. The surety can cancel the bond at any time by filing 45 days’ written notice of such cancellation with the vehicle dealer and the Director of the Department of Revenue. If, however, cancellation is based upon nonpayment of premium, this bond may be canceled by the surety upon 10 days’ written notice to the dealer and the director.
The applicant must indicate one of the following dealer types on the bond application:
- motor vehicle dealer
- used motor vehicle dealer
- powersports vehicle dealer
- used powersports vehicle dealer
- wholesale motor vehicle auction-dealer
How to become a vehicle dealer in Colorado
A vehicle dealer in the state of Colorado is defined as a person who sells or leases 3 vehicles from the same address during the cycle of one calendar year with the intent to make a profit. These professionals must obtain a license issued by the Colorado Motor Vehicle Dealer Board (MVDB). Applicants must do the following to qualify for a license:
- submit all required forms of the application
- pay all appropriate licensing fees
- provide proof of a sales tax license
- post the proper surety bond
- meet the minimum net worth requirements
- furnish a credit report as well as a background check
- and more
More licensing information can be accessed from the Additional Resources section of this page.
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