What is a Colorado Auto Dealer Bond?
A Colorado auto dealer bond is required by car dealerships in CO. These bonds protect your customers from financial harm caused by the dealership. Financial harm can be caused by fraud or breaking any of the terms of parts 1 and 5 of Title 12, Article 6 Colorado Code. The dealer bond can pay for the damage caused to your client if you can not afford to pay.
How do I apply for an Colorado Dealer Surety Bond?
- Complete our online Colorado Dealer Surety Bond application, or
- Download and complete our printable Colorado Dealer Surety Bond application, and
- Receive your surety bond quote in minutes!
Why do I need a Colorado Auto Dealer Bond?
You need a Colorado auto dealer bond because you want to be licensed as one of the following businesses:
- Franchise Dealer
- Used Dealer
- Wholesaler
- Wholesale Auction
- Franchise Powersport Vehicle Dealer
- Used Powersport Vehicle Dealer
- Wholesale Powersport Vehicle Dealer
Each of these dealer license types require a surety bond in the amount of $50,000. As mentioned above, Colorado dealer bonds protect your clients against financial harm caused by your business. They offer to pay on your behalf when you can’t afford it or refuse to make payment. Think of these bonds as a backup plan to ensure your customers are made whole for valid claims.
What is a valid Colorado Auto Dealer Bond claim?
Valid bond claims are determined by Colorado. Your customer must file a complaint with the state. The state then reviews the claim and determines if it’s valid. Most claims which violate the Colorado Code are considered valid. You will be asked to satisfy the claim if it’s found to be valid. If you cannot or refuse to pay it, a claim is then made on your surety bond. Keep in mind that a surety company will come back to you for any claims and costs incurred on your behalf. Please visit our What is a Surety Bond page to learn more about how a surety bond works.
How much is a Colorado Dealer Bond?
The Colorado dealer bond cost is primarily based on your personal credit score. Other factors which can influence your bond cost are prior claims, experience, and financial strength. Listed below are the average bond costs by license type:
- Franchise Dealer – $50,000 bond amount – $450-$1,000 good credit – $1,500 and up for average to bad credit
- Used Dealer – $50,000 bond amount – $450-$1,000 good credit – $1,500 and up for average to bad credit
- Wholesaler – $50,000 bond amount – $450-$1,000 good credit – $1,500 and up for average to bad credit
- Wholesale Auction – $50,000 bond amount – $450-$1,000 good credit – $1,500 and up for average to bad credit
- Franchise Powersport Vehicle Dealer – $50,000 bond amount – $450-$1,000 good credit – $1,500 and up for average to bad credit
- Used Powersport Vehicle Dealer – $50,000 bond amount – $450-$1,000 good credit – $1,500 and up for average to bad credit
- Wholesale Powersport Vehicle Dealer – $50,000 bond amount – $450-$1,000 good credit – $1,500 and up for average to bad credit
You can determine your exact dealer bond cost in minutes by applying online. Our quotes are completely free and require no obligation to purchase.
How long will it take to get my Colorado Dealer Bond?
Most dealer bonds can be released the same day payment is received. All bonds are shipped via USPS First Class Mail unless expedited shipping is selected. Bonds shipped via USPS First Class mail are shipped for free and are generally received in 1-3 business days. Overnight shipping is available upon request if your bond is needed tomorrow!
Other helpful Colorado Auto Dealer Bond information
Colorado Department of Revenue Main Office
1881 Pierce St. #112
Lakewood, CO 80214
Phone 303-205-5604
Fax 303-205-5977
Email dor_dealers@state.co.us