A Colorado Motor Vehicle Dealer Bond is a $50,000 financial guarantee required for anyone who wants to sell cars, trucks, or other motor vehicles in Colorado. This bond protects customers and the State of Colorado if the dealer breaks state laws, engages in fraud, or fails to meet their legal obligations. If a dealer …
Overview
What it is.
A Colorado Motor Vehicle Dealer Bond is a $50,000 financial guarantee required for anyone who wants to sell cars, trucks, or other motor vehicles in Colorado. This bond protects customers and the State of Colorado if the dealer breaks state laws, engages in fraud, or fails to meet their legal obligations. If a dealer …
Who usually needs it
Motor vehicle dealers in Colorado, including new/used motor vehicle dealers, powersports vehicle dealers, used powersports vehicle dealers, wholesale motor vehicle dealers, and business disposal dealers who sell three or more vehicles or trailers at a property in Colorado. The bond is required as part of the licensing process to operate legally in the state.
Pricing & timing
What to expect.
Generic pricing
License bonds are required by state and local governments to ensure compliance with industry regulations. Typical Pricing:. • Small bonds (under $25,000): Typically $100–$250 per year (flat fee). • Larger license bonds: Commonly around 1–5% of the bond amount annually. • Credit impact: Good credit: starting around 1–2% · Average credit: typically 2–4% · Credit challenges: often 4–5% or higher. Same-day approval is typical for many common license bonds. Some license bonds may price higher de…
Typical timeframe
Issuance timeframe varies by bond type and underwriting
Application
What to do next.
Tell us the bond name, state, and amount on your form.
Share business and applicant info so the team can quote it.
Sign and pay; we issue the bond and send you the documents.
Keep your effective date and renewal date on file with us.
Start the application.
You are on the exact bond page. The next step is to start the quick application.
StateCOBond amount$50,000ObligeeState of ColoradoBond classLicense BondCategoryMotor VehicleBondColorado Motor Vehicle Dealer BondJurisdictionStatePlain descriptionA Colorado Motor Vehicle Dealer Bond is a $50,000 financial guarantee required for anyone who wants to sell cars, trucks, or other motor vehicles in Colorado. This bond protects customers and the State of Colorado if th…Who needs this bondMotor vehicle dealers in Colorado, including new/used motor vehicle dealers, powersports vehicle dealers, used powersports vehicle dealers, wholesale motor vehicle dealers, and business disposal dealers who sell three o…
