Motor Vehicle Dealers - Used Vehicles Only

The State of Colorado Motor Vehicle Dealer Bond is a surety bond required for powersports dealers, wholesale dealers, and wholesale auction dealers operating in Colorado. This bond ensures compliance with state regulations governing motor vehicle sales and protects consumers and the state from potential violations of dealer licensing requirements.

Powersports dealers, wholesale motor vehicle dealers, and wholesale auction dealers must obtain this bond as part of their licensing requirements with the State of Colorado. The bond amount varies based on the type of operation: $5,000 for dealers selling only utility trailers weighing less than 2,000 pounds, and $50,000 for other qualifying dealer operations.

This bond protects the State of Colorado and consumers from financial losses that may result from the dealer's failure to comply with state motor vehicle dealer laws and regulations. The bond provides recourse for damages caused by fraudulent practices, failure to transfer titles properly, or other violations of Colorado motor vehicle dealer statutes.

The bond term is one year and must be renewed annually to maintain active dealer licensing status. Dealers must maintain continuous bond coverage throughout their licensing period to remain in compliance with Colorado state requirements.