How to get a Colorado Dealer License
A Colorado dealer license is mandatory to sell cars and powersports vehicles in Colorado. The state regulates the dealer industry through Title 12, Article 6 of the Colorado Revised Statutes. These statutes set the rules for your dealership and its salespeople along with providing guidance for licensing procedures. The information below will help you get your dealer license.
What are the Colorado Dealer License requirements?
You must meet three initial requirements to apply for you Colorado dealer license:
- Minimum $100,000 in personal net worth. Net worth = Total Assets (Cash, homes, cars, and other property) – Total Liabilities (Mortgages, loans, and other debt).
- Minimum Experian credit score of 701. If uncertain of your credit score, please run it before applying with the Colorado Department of Revenue.
- Pass a background check or be able to provide documentation for felony and misdemeanor crimes which you have been found guilty or pled no contest. Certain felony crimes will automatically disqualify your application.
If you meet the three requirements mentioned above, you’ll need to provide additional information to continue the licensing process.
Colorado Dealer License Checklist
Listed below are items you’ll need to get your Colorado dealer license:
- State application 2109 – This is a one page form which gives the most basic information about your dealership.
- License fee – Colorado charges a fee depending on your license. First time licenses cost $519. A list of fees can be found here.
- Additional owner form 2109B – This form is required for each additional owner of the dealership.
- Pre-licensing Education Cert – Dealers who have not held a license in the past three years must take a pre-licensing class.
- Mastery Exam Affidavit – Owners and partners must pass the exam and provide the passing certificate to the Department of Revenue.
- Surety Bond – You will need to purchase a Colorado Dealer Bond and provide a copy to the state. The bond must be in the amount of $50,000. You can apply for the bond by clicking here.
- ID – Each owner will need to provide a valid government issued ID.
- Form DR 4679 – Each owner will need to provide a Restrictions on Public Benefits affidavit.
- Form DR 2114 – Each owner must provide a financial statement to prove the $100,000 net worth requirement mentioned above.
- Business Plan – A written plan for your business is required.
- Form DR 2044 – Place of business affidavit
- Location Photographs – You’ll need to provide pictures of your dealership’s signs, entrances, buildings, and bathrooms.
- Sales Tax License – You can apply for a sales tax number here.
- Lease – A copy of your building lease.
In addition to the information above, you will also need to provide the following if you are applying as an LLC, corporation, or partnership:
- A copy of your bylaws, operating agreement, or partnership agreement.
- A copy of your articles of organization (LLC), incorporation (C Corp), or similar document.
- Trade name (DBA) if any.
This information will be reviewed by the Colorado Motor Vehicle Dealer Board.
What is the CO Motor Vehicle Dealer Board?
The board is who ultimately approves your Colorado dealer license. They will review your application and approve it, deny it, or ask for more information. Additionally, they can also revoke or suspend your dealers license once it has been issued.
When will I know if my Colorado Dealers License is approved?
Your license will be approved only after the board approves your application. You can follow up on the its status by calling the licensing department at 303-305-5604. This is the main office number for the Auto Industry Division of the CO Department of Revenue. Two other locations exist in Colorado Springs and Grand Junction. Each location’s address is listed below. You can also email the department at email@example.com.
1881 Pierce St. #112
Lakewood, CO 80214
Colorado Springs Office
2447 N Union Blvd
Colorado Springs, CO 80909
623 Market St., G-3
Grand Junction, CO 81506
Learn more about the Colorado Dealers Bond.