Motor Vehicle Dealers - New or New and Used Vehicles

The State of Colorado Motor Vehicle Dealer Bond is a surety bond required for businesses operating as powersports dealers, wholesale dealers, or wholesale auction dealers in Colorado. This bond ensures compliance with state motor vehicle dealer regulations and protects both the state and consumers from potential violations or fraudulent practices.

Who Needs This Bond: Powersports dealers, wholesale motor vehicle dealers, and wholesale auction dealers operating in Colorado must obtain this bond as part of their licensing requirements. Dealers who only sell utility trailers weighing less than 2,000 pounds require the lower bond amount.

Coverage and Protection: The bond protects the State of Colorado and consumers from financial losses resulting from the dealer's failure to comply with state motor vehicle laws, fraudulent activities, or other violations of dealer regulations. Bond amounts are $5,000 for dealers selling only utility trailers under 2,000 pounds, and $50,000 for other qualifying dealer types.

Term and Renewal: This bond has a one-year term and is renewable annually. Dealers must maintain continuous bond coverage to keep their license active and remain in compliance with Colorado motor vehicle dealer regulations.