How to get a used car dealer license in Colorado
A practical walkthrough of the Used Motor Vehicle Dealer application — fees, bond, timeline, and what to expect at each step. Verified against the official agency as of June 2026.
Getting a Used Motor Vehicle Dealer used-car dealer license in Colorado:
- Surety bond required
- $50,000
- Application fee
- $455 license fee
- License term
- Annual
- Typical timeline
- 6 – 10 weeks
- Typical first-year cost
- $1,200 – $3,500
This guide is informational and does not replace official Colorado requirements. Always verify with the Colorado Auto Industry Division (Department of Revenue) before applying.
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Who can apply for a Used Motor Vehicle Dealer license
Colorado requires a Used Motor Vehicle Dealer license for anyone who sells three or more used vehicles in a 12-month period. It's issued by the Auto Industry Division within the Colorado Department of Revenue, which staffs the Motor Vehicle Dealer Board.
In Colorado this is also commonly called an auto dealer license, car dealer license, or motor vehicle dealer license — all the same Used Motor Vehicle Dealer authority to sell used vehicles.
- An established place of business in Colorado zoned for vehicle sales, with an office, lot, and sign meeting Auto Industry Division standards
- Completion of the required 8-hour pre-licensing sales course for new used-dealer applicants
- A $50,000 motor vehicle dealer surety bond
- A registered Colorado business entity and sales-tax license
- A background investigation and fingerprints for the applicant and owners
- A passing inspection of the dealership location
Step-by-step process
- 1
Secure a compliant location
Get a Colorado location zoned for vehicle sales with an office, display lot, and permanent signage that meets Auto Industry Division standards. The division inspects the site before licensing.
- 2
Complete the 8-hour pre-licensing course
New used-motor-vehicle-dealer applicants must complete the required 8-hour pre-licensing sales course on Colorado dealer law and operations. Keep the certificate of completion for your application.
- 3
Post your $50,000 surety bond
Buy a $50,000 motor vehicle dealer surety bond and keep it active for as long as you're licensed. You pay an annual premium, not the full amount.
- 4
Register your business and get a sales-tax license
Form your Colorado entity and obtain a state sales-tax license so you can collect and remit tax on sales. You'll include these with the application.
- 5
Submit the application, fee, and fingerprints
File the application with the Auto Industry Division, pay the $455 license fee, and submit fingerprints for the background investigation along with your bond, course certificate, and location documents.
- 6
Pass the inspection and receive your license and plates
An investigator inspects your dealership to confirm the office, lot, and signage meet requirements. Once approved, you're a licensed Colorado used motor vehicle dealer and can obtain dealer plates.
Colorado dealer license cost — fees breakdown
| Item | Amount |
|---|---|
License fee | $455 |
Pre-licensing course Required 8-hour course for new used dealers. | ~$200 – $400 |
Surety bond premium (annual) Premium on the $50,000 bond, by credit. | $250 – $3,500 |
Fingerprints / background check Per person for the applicant and owners. | ~$50 |
Dealer plates Obtained after licensing. | Varies |
Surety bond requirement
Colorado requires every used-vehicle dealer to post a $50,000 surety bond. The bond protects buyers from misconduct (odometer fraud, undisclosed liens, deceptive trade practices) and the state from unpaid taxes.
You don't pay the full bond amount up front — you pay an annual premium to a surety company, typically 1-5%of the bond's face value. Your actual premium depends on personal credit and business history.
Colorado requires a $50,000 motor vehicle dealer surety bond, filed with the Auto Industry Division and maintained for as long as your license is active. You pay an annual premium (typically 1–5% of the bond) based on your credit, not the full $50,000.
Renewal
Colorado used motor vehicle dealer licenses renew annually. Keep your $50,000 bond and sales-tax license current and your location compliant. The Auto Industry Division sends renewal information; renew before expiration to keep operating.
Common questions
When do I need a Colorado dealer license?+
Colorado requires a used motor vehicle dealer license once you sell three or more used vehicles in a 12-month period. Selling at that volume without a license from the Auto Industry Division is illegal.
How much does a Colorado dealer license cost?+
The license fee is $455. Add the pre-licensing course, the surety bond premium (often $250–$3,500/year on the $50,000 bond), fingerprints, and facility costs — most first-year totals land between $1,200 and $3,500.
Do I have to take a course to get a Colorado dealer license?+
Yes — new used-motor-vehicle-dealer applicants must complete an 8-hour pre-licensing sales course covering Colorado dealer law and operations, and submit the certificate of completion with the application.
Who regulates car dealers in Colorado?+
The Auto Industry Division within the Colorado Department of Revenue licenses and regulates motor vehicle dealers and staffs the Motor Vehicle Dealer Board, which handles bonding, investigations, and dealership inspections.
How long does it take to get licensed in Colorado?+
Most applicants are licensed in about 6 to 10 weeks once the location is ready, the course is done, the bond is posted, and fingerprints clear. The background investigation and inspection are usually the longest steps.
How much does a Colorado dealer license cost?+
Plan for about $1,200 – $3,500 in the first year. That covers the $455 license fee application fee and the $50,000 surety bond — you pay an annual premium of roughly 1-5% of the bond, not the full amount — plus business-formation, facility, and dealer-plate costs. See the full fees breakdown above.
How do I get dealer plates in Colorado?+
Dealer plates are separate from the license itself. Once your Used Motor Vehicle Dealer license is approved, you apply for dealer plates and pay a per-plate fee (listed in the fees breakdown above). You can't obtain dealer plates before the license is issued.
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