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All state guides Colorado dealer license

How to get a used car dealer license in Colorado

You apply online to the Colorado Auto Industry Division for a used motor vehicle dealer license, and the Motor Vehicle Dealer Board decides it. The financial test sets Colorado apart: $100,000 net worth with $25,000 liquid, a 675 Experian VantageScore and a $50,000 bond.

  • Sourced to AID
  • Checked October 2026
  • Free
License
Used motor vehicle dealer license
Surety bond
$50,000
State fee
$900
Pre-license course
8 hours + mastery exam
Background check
Fingerprints, every applicant
License term
12 months, $734 renewal
What the state asks for

Colorado dealer license requirements

The figures a first-time used car dealer needs before applying to AID. Each row shows how well it is supported.

Surety bond
$50,000Official source

A surety bond with your full legal name and trade name on the principal line, signed by an owner, partner, officer or LLC member. Dealers that only sell small trailers post $5,000.

State license fee
$900Official source

Original dealer license fee for July 1, 2026 to June 30, 2027. Colorado resets its fees every July 1. Each original applicant also pays $39.50 for the fingerprint background check.

Pre-license education
8 hours + mastery examOfficial source

An 8-hour board-approved pre-licensing course, plus an online mastery exam: 60 questions, 90 minutes, open book, 85% to pass. The course is waived if you held a dealer license in the last 3 years.

Background check
Fingerprints, every applicantOfficial source

Each applicant is fingerprinted for a CBI and FBI check, and AID runs a background investigation. Disclose every felony and any misdemeanor from the past 10 years, with court documents.

Insurance
Confirm with AIDConfirm with the agency

The division's application checklist does not list a liability insurance filing. Ask AID whether any coverage proof is expected before you order dealer plates.

Business location
Office, display space, signOfficial source

A permanent enclosed office used only for the dealership, room to display at least one vehicle, a sign with the licensed name, and posted hours on at least 3 days a week.

License term and renewal
12 months, $734 renewalOfficial source

The license expires 12 months after the month it was issued. Renewal is $734 for the 2026 to 2027 fee year. A 30-day grace period carries a $50 late fee. After that you reapply as a new dealer.

Sales allowed without a license
Fewer than 3 per calendar yearOfficial source

Selling three or more used vehicles in a calendar year, or offering more than three at one address or phone number, is treated as evidence of dealing. It is a presumption, and selling for profit can need a license below it.

Processing time
30 to 60 days (background check)Official source

AID says the background investigation is often done in 30 to 60 days and can take much longer. It does not publish a total time from filing to license.

“Official source” means the state agency’s own page, form or law. Where the state’s sources did not settle a point, the row says so instead of showing a guess.

Who issues the license

Colorado Department of Revenue, Auto Industry Division (Colorado Motor Vehicle Dealer Board)

License you apply for

Used motor vehicle dealer license

Official licensing page

An outdated DR 2248 is still online

A DR 2248 dated 09/30/24 still loads at an old link. It shows a 701 credit score and no liquid asset rule. The current DR 2248, dated 04/02/26, and the division's web checklist both say 675 and $100,000 net worth with $25,000 liquid. Use the copy linked from the application page. Fees change every July 1, so check the current DR 2246 before you pay.
Step by step

How to get a Colorado dealer license

The order that works for a first application. Tick each step off as you finish it.

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  1. Check the financial test before anything else

    The board expects $100,000 in net worth, with at least $25,000 of it in cash, stocks or bonds, and an Experian VantageScore of 675 or higher for everyone with an ownership interest. AID pulls the Experian report itself. You also need to be current on taxes, court fines and child support.

    $100,000 net worth · 675 score

  2. Form the business and get a sales tax account

    Register the entity and any trade name with the Colorado Secretary of State and get a certificate of good standing. Apply for a Colorado sales tax account. AID asks for the sales tax account number or license and proof of the trade name registration.

    CR0100AP

  3. Secure a location that passes the affidavit

    Pick a site that local zoning allows and that meets every line of the Place of Business Affidavit: enclosed office, restroom, display space, sign, posted hours and exclusive use. If you lease, the lease must allow dealer operations and signage, and a copy goes in with the application.

    DR 2044

  4. Take the 8-hour course and pass the mastery exam

    The owner or managing officer (every general partner in a partnership) completes an 8-hour pre-licensing course from a board-approved provider. Owners who will sell under the license also pass the online mastery exam, which is given by a licensed dealership or an approved association. Send the signed Examination Affidavit with the application.

    DR 2097 · 85% to pass

  5. Get fingerprinted and buy the $50,000 bond

    Each applicant is fingerprinted for a CBI and FBI check. Use IdentoGO or American BioIdentity with the motor vehicle dealer code, or book an appointment at the AID office. Prints older than six months are not accepted. Buy a $50,000 surety bond that shows your full legal name and trade name on the principal line.

    DR 2197 · $39.50 check fee

  6. Build the ownership and financial file

    Complete the application (DR 2109), an addendum (DR 2109B) for each owner, partner, member, officer and 5% stockholder, and a Statement of Financial Condition (DR 2114) for the applicant and each owner. Back up cash with 12 months of full bank statements. Add a business plan, ID for everyone on an addendum and the Dealer Plate Affidavit (DR 2640).

    DR 2109, DR 2109B, DR 2114

  7. Apply online and pay the $900 fee

    File the initial application through the division's online licensing portal and pay the original dealer fee, $900 for July 2026 through June 2027. AID says its background investigation is often done in 30 to 60 days. The Motor Vehicle Dealer Board issues or denies the license, so do not sell until yours is issued.

    codor.mylicenseone.com

  8. License your salespeople

    Anyone who negotiates or takes part in sales activity needs a salesperson license, and AID says that includes a general manager or finance manager. The original salesperson fee is $217. Your dealer license shows your demonstrator plate authorization.

    Salesperson license · $217

Practical advice

Run the numbers before you sign a lease. Pull your own Experian report, because AID uses Experian and looks for a VantageScore of 675, and total your net worth with the division's asset guidelines. Liquid means cash, stocks or bonds, so a paid-off vehicle or equipment does not count toward the $25,000. Keep company and personal assets on separate statements.

Before you apply

Seven things to settle before any state application: the business, the owners, the money and the property.

Read the startup playbook
The lot and the office

Colorado dealer location requirements

What the state checks at the business address.

  • A permanent enclosed office large enough for the dealership, with electrical service and a restroom.
  • Space to display at least one vehicle.
  • Hours posted, and open at least 3 days a week for 4 continuous hours a day between 8 a.m. and 9 p.m.
  • The office, entrance and display area are used only by the dealership. They cannot be shared with another business.
  • The property is owned or leased. A lease must allow dealer operations, signage and vehicle display.
  • A permanent sign showing the licensed name, visible from outside the building or its public entry. A temporary sign works while the permanent one is on order.
  • The site complies with local zoning, and books and records are stored safely and open to inspection.

Zoning comes first

A site that meets the state’s rules can still fail local zoning. Get written approval for vehicle sales from the city or county, and ask the landlord for a lease that depends on the license being issued, before you sign.
Once you are licensed

Keeping a Colorado dealer license

Renewal and ongoing duties

Renew before the expiration date printed on the license, 12 months after the month of issue. Renewal needs a $50,000 bond or continuation certificate and the $734 fee. If you miss the 30-day grace period you start over as a new applicant. Tell the board in writing as soon as you move, and file a new application with a new bond if the entity type changes.

Federal rules that apply here too

  • The FTC Buyers Guide, posted on every used vehicle you offer for sale.
  • The FTC Safeguards Rule: a written plan for protecting customer financial information.
  • IRS Form 8300 when a customer pays more than $10,000 in cash.
  • A federal odometer disclosure on each transfer.
How each federal rule works
FAQ

Colorado dealer license FAQ

The questions first-time dealers ask most.

How do I get a used car dealer license in Colorado?

Meet the board's financial test ($100,000 net worth with $25,000 liquid and a 675 Experian VantageScore), set up a location that meets the Place of Business Affidavit, take the 8-hour pre-licensing course, pass the mastery exam, get fingerprinted and buy a $50,000 bond. Then file online with the Auto Industry Division and pay the $900 fee. The Motor Vehicle Dealer Board issues the license.

How much is the dealer bond in Colorado?

$50,000 for a dealer or wholesaler. The bond must show your full legal name and trade name on the principal line and be signed by an owner, partner, corporate officer or LLC member. Dealers that only sell small trailers under 2,000 pounds post $5,000.

How much does a Colorado dealer license cost?

The original dealer license fee is $900 for the license period July 1, 2026 to June 30, 2027, and renewal is $734. Each original applicant also pays $39.50 for the fingerprint background check, and a salesperson license is $217. Colorado changes these fees every July 1, so check the current DR 2246 fee schedule. The bond premium and the course are extra.

Do I need a pre-licensing course in Colorado?

Yes. A used dealer applicant needs an 8-hour pre-licensing course from a provider approved by the Motor Vehicle Dealer Board, unless the applicant held a Colorado dealer or wholesaler license in the last 3 years. There is also a mastery exam: 60 questions, 90 minutes, open book, with 85% needed to pass.

Can I get a Colorado dealer license without a car lot?

Not for retail sales. A used dealer needs a permanent enclosed office, space to display at least one vehicle, a sign with the licensed name, a restroom and posted hours on at least 3 days a week. The office, entrance and display area cannot be shared with another business.

How many cars can I sell in Colorado without a dealer license?

Colorado law treats the sale of three or more used vehicles in one calendar year, or offering more than three for sale at the same address or phone number, as evidence that you are in the business of selling cars. That count is a presumption, not a safe harbor: the definition of a dealer covers anyone who sells used vehicles for profit.

Sources

Checked October 2026. This is general information, not legal, tax or insurance advice. Fees, bond amounts and forms change, and local zoning rules vary. Confirm current requirements with AID or your attorney before you sign a lease or pay a fee.

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