Motor Vehicle Dealer Bond in Colorado

What this bond requires in Colorado

Colorado requires a $50,000 surety bond for motor vehicle, used motor vehicle, wholesale auction, business disposal, and wholesaler dealer license applicants under C.R.S. § 44-20-112; only small utility trailer dealers (under 2,000 lbs) qualify for the reduced $5,000 bond. The bond is filed on Form DR 2830 with the Auto Industry Division. Bonds must be renewed annually at the same time the licensee dealer license is renewed, and a surety-issued continuation certificate satisfies the renewal requirement. Salespersons employed by the dealership must separately post a $15,000 bond on Form DR 2831 under C.R.S. § 44-20-113.

Who requires it

The motor vehicle dealer bond is required by the Colorado Department of Revenue, Auto Industry Division under C.R.S. § 44-20-112.

How to file in Colorado

Applicants complete the Dealer/Wholesaler application packet through the Colorado Department of Revenue Specialized Business Group (sbg.colorado.gov) and submit the executed $50,000 surety bond on Form DR 2830 with the application package to the Auto Industry Division, either via the SBG online portal or by mail. The Auto Industry Division reviews the application, bond, supporting documents, fingerprints, and required pre-licensing education before issuing the dealer license. Bonds and licenses expire annually; the Division mails renewal packets approximately 30 days before expiration.

Official filing form →

Get a real motor vehicle dealer bond quote for Colorado

Your bond type and state will be pre-filled. No upsell, no pressure.

FAQ

Common questions

Is a motor vehicle dealer bond required in Colorado?

Yes. Colorado requires motor vehicle dealer bonds issued by an admitted surety. The required amount is $5,000 to $50,000.

How much is the bond in Colorado?

The bond amount is $5,000 to $50,000. Your annual premium is a small percentage of that, based on credit and experience.

Who requires the bond?

The bond is required by the Colorado Department of Revenue, Auto Industry Division.

How is the bond filed?

Applicants complete the Dealer/Wholesaler application packet through the Colorado Department of Revenue Specialized Business Group (sbg.colorado.gov) and submit the executed $50,000 surety bond on Form DR 2830 with the application package to the Auto Industry Division, either via the SBG online portal or by mail. The Auto Industry Division reviews the application, bond, supporting documents, fingerprints, and required pre-licensing education before issuing the dealer license. Bonds and licenses expire annually; the Division mails renewal packets approximately 30 days before expiration.

What does the bond cover?

Surety bonds protect the obligee, not the principal. If you fail to meet the obligation the bond guarantees, the surety pays the claim and recovers from you.

Is a surety bond the same as insurance?

No. Insurance protects you. A surety bond protects whoever required the bond. You repay the surety for any claim they pay.