What is an Colorado Car Dealer Bond?
Colorado Car Dealer Bonds are required by The Department of Revenue to obtain your Dealer license. The Bond amount is set at $50,000. The bond ensures that the principal shall comply with the conditions of any contract made by such licensee in connection with the sale or exchange of any motor vehicle and shall not violate any of the provisions of law relating to the conduct of the business for which it is licensed.
Different parts of a bond:
The bond is required when The Obligee (Department of Revenue) is the entity requiring you to get the bond. There are 3 parts to a surety bond. The Principal "YOU", The Surety Company, and the Obligee. The Principal is the business or individual applying for the Surety Bond. The Obligee is the individual or entity requiring the Surety Bond and the Surety Company is the company who provides the Surety Bond coverage.
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Colorado MVD Bond Requirements and Information:
Apply for a Colorado Car Dealer License
The Colorado dealer license application process is extensive, but we’ve highlighted the basic requirements below. Pay close attention to the instructions listed on each required application and form.
When applying for a dealer OR wholesaler license, you’ll need to provide:
· A completed:
o Dealer/Wholesale License Application (Form DR 2109).
o Dealer/Wholesale License Application Addendum (Form DR 2109B).
· For each owner, partner, officer, AND member of your proposed business, a:
o Secure verifiable identification (SVID).
o Completed Affidavit—Restrictions on Public Benefits (Form DR 4679).
o Filled out Statement of Financial Condition (Form DR 2114).
· Your pre-licensing training certificate.
· A completed:
o Examination Affidavit (Form DR 2097), stating you’ve passed the appropriate auto industry mastery examination.
o Place of Business Affidavit (Form DR 2044).
o Dealer/Wholesaler Plate Affidavit (Form DR 2640).
· If applicable, a completed Bylaws/Operating Agreement.
· Your business plan, which MUST include specific information; consult the application for details.
· Your business’ trade name, if applicable.
· A constituent filed document applicable to your business; this could be:
o Articles of Incorporation.
o Articles of Association.
o Articles of Organization.
o Certificate of Limited Partnership.
o Statement of Registration.
· A copy of your lease, if applicable.
· Pictures of your business’:
o Main entrance.
o Signage, as seen from the main road (from both directions).
o Building, as seen from the main road.
· A Franchise Agreement, if applicable.
· Your Certificate of Good Standing from the Colorado SOS.
· A copy of your $50,000 surety bond.
· Your CO sales tax license.
· The $519 application fee.
o For additional fees you may encounter as a dealer/wholesaler, refer to the CO Department of Revenue’s license fee schedule.