Colorado Motor Vehicle Dealer Bond |
AmeriPro Surety Bonds | 844-589-9732
Auto Dealer License – Colorado
Auto dealers in Colorado undergo a pretty stringent process in order to be licensed. The Colorado Department of Revenue, Enforcement Division, oversees they licensing of Colorado auto dealers; it is also the obligee for the surety bond required.
To become licensed as a dealer, you must meet all of the following:
- You must have a minimum net worth of at least $100,000;
- You must have a minimum credit score, via Experian, the Texas based credit bureau — and the Vantage product — with a score of at least 701. If there is any derogatory information on your credit, you must explain why this is so;
- You must undergo a background check. If you have been convicted of any crime – or plead no contest – you must include court documents with your application.
- And meet and comply with other requirements.
In addition to the appropriate fee using the current fee schedule, you must furnish the Department with evidence of a surety bond.
Colorado Motor Vehicle Dealer Bond
The Colorado motor vehicle bond is:
- A $5,000 surety bond for dealers who only sale small trailers (weighing less than 2,000 lbs.);
- A $50,000 surety bond for dealers and wholesalers of new and/or used vehicles. Dealers under this category include powersports dealers and wholesale motor vehicle auction dealers.
The Premium or Cost of the Surety Bond
Applicants for the Colorado motor vehicle dealer bond will complete a standard surety bond application and a credit score inquiry. The application can be completed with a representative from our agency over the phone.
A well-qualified applicant for this surety bond ($50,000) may pay as little as $500, annually; however, the amount you pay will be determined by your application and credit. Presumably, since qualifying for the dealer license requires a high credit score, you will have no problem qualifying for this surety bond.
Applicants will typically pay about 1% of the premium; however, amounts may vary somewhat.
Prepayment of Premium
Additionally, prepayment of the premium for 2 or 3 years may be an available option. While entirely your decision, prepayment allows you to save over year to year renewal of the surety bond premium.
Using the $50,000 Colorado motor vehicle dealer bond at $500, annually:
- If prepaid for 2 years, the premium amount is $900;
- If prepaid for 3 years, the premium amount is $1300.
The purpose of your Colorado auto dealer bond is to serve as a financial guarantee that you will be in compliance with Title 12, Article 6, of the Colorado Revised Statutes and any amendments or additions to the law, as also any other related laws and procedures.
While required of your dealership, this surety bond protects consumers from acts of fraud and criminal wrongdoing and malfeasance or misfeasance in the course of your profession.
Such protections would also extend to wrongdoing committed by any employees, agents, and managers of your Colorado auto or wholesale dealership.
AmeriPro Surety Bonds is a surety bonds-only agency. We provide license and permit, fiduciary, and court surety bonds throughout Colorado.
Our agency also provides surety bonds nationwide.
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