How to Get a Dealer License in Colorado
In Colorado, dealer licensing runs through the Colorado Department of Revenue — Auto Industry Division (AID) & Motor Vehicle Dealer Board. To get a used car dealer license in Colorado you'll need a registered business, a compliant location, a $50,000 surety bond, and the fees below. Whether you're opening a car lot, going wholesale-only, or starting a buy-here-pay-here operation, this guide walks the Colorado auto dealer license requirements, real costs, and the exact steps — in plain English. Rules change, so verify everything against the Colorado Department of Revenue — Auto Industry Division (AID) & Motor Vehicle Dealer Board's current pages before you file.
- Surety bond
- $50,000
- License term
- One-year license term; dealer, wholesaler and salesperson licenses renew annually through AID (the fee schedule runs on a July 1–June 30 cycle), with a $50 late fee for missing the deadline.
- Sales threshold
- Selling three or more motor vehicles — or offering more than three at one address or phone number — in a calendar year is prima facie evidence you're a dealer and need a license (ten or more for powersports vehicles).
- Pre-licensing
- New applicants for a used motor vehicle dealer, wholesaler, wholesale auction or used-powersports license must complete Board-approved pre-licensing education and pass the AID Mastery Exam (C.R.S. §44-20-118(7)). Anyone who has held one of those licenses within the last three years is exempt from the class.
License types in Colorado
| License type | What it covers |
|---|---|
| Motor Vehicle Dealer | Selling or leasing new (or new and used) motor vehicles from a licensed Colorado location; new-car sales tie to a franchise. |
| Used Motor Vehicle Dealer | Retailing used motor vehicles. Selling — or offering more than three — used vehicles at one address/phone in a calendar year is prima facie evidence you're a dealer. |
| Wholesaler | Buying and selling vehicles solely to other licensed Colorado (or out-of-state) dealers — not to the retail public. |
| Wholesale Motor Vehicle Auction Dealer | Running wholesale auctions where the buyers are licensed dealers (plus certain government-vehicle consumer sales). |
| Powersports / Used Powersports Vehicle Dealer | Selling motorcycles, ATVs, snowmobiles and similar powersports vehicles; the dealer threshold is ten or more in a calendar year. |
| Buyer Agent & Business Disposal Dealer | Buyer Agent arranges a purchase for a retail customer for a fee; Business Disposal Dealer sells off a business's own fleet — both are separately licensed AID categories. |
What it costs
| Item | Cost | Notes |
|---|---|---|
| Original dealer/wholesaler license fee | $900 | Covers Dealer, Wholesaler, Business Disposal, Buyer Agent, Wholesale Auction and Powersports originals (DR 2246 fee schedule) |
| Renewal dealer/wholesaler license | $734 | Annual renewal; $50 late fee if you miss the deadline |
| Salesperson license | $217 original / $168 renewal | Each salesperson is separately licensed by AID |
| Surety bond (face amount) | $50,000 | Premium you pay is a fraction of this, based on credit |
| Fingerprint-based background check | $39.50 | Required for all original applicants (per owner) |
| Off-premise permit | $200–$500 | Class One (limited sales) $200 / Class Two (full sales) $500 to sell away from your licensed lot |
| Pre-licensing education + Mastery Exam | Varies by provider | Board-approved course fee plus the AID Mastery Exam for new applicants |
| Dealer-for-resale title | $25 per title | Paid individually at a county office or the State Title Section |
Step by step
- Form/register your business entity and secure a compliant, inspectable Colorado business location with an office, display area and signage.
- Meet the Dealer Board's financial-fitness bar (~$100,000 net worth / ~$25,000 liquid) and clear the 675+ credit-score requirement for every owner.
- Complete Board-approved pre-licensing education and pass the AID Mastery Exam (unless you've held a qualifying license in the last three years).
- Obtain the $50,000 surety bond (Form DR 2830) and complete fingerprint-based background checks ($39.50 per original applicant).
- File the Dealer/Wholesaler application with the Auto Industry Division and pay the $900 original license fee.
- After licensing, enroll in the DRIVES Dealer Access Portal (3PA) to issue 60-day temporary permits and process dealer-for-resale titles.
Premises & temp tags
Location: An established, permanent Colorado place of business that AID can inspect — a proper office, display area, business records on site, and posted signage. Home-based used-retail lots rarely qualify. The Motor Vehicle Dealer Board also imposes a financial-fitness bar: applicants must show roughly $100,000 total net worth (about $25,000 of it liquid) and every owner needs an Experian Vantage credit score of 675 or higher.
Temp tags / plates: Colorado dealers issue 60-day temporary permits through the DRIVES Dealer Access Portal after enrolling via Third-Party Access (3PA). Permits must be printed and attached to a department-approved mounting board, and by law (C.R.S. §42-3-105) you cannot issue a temp tag unless the buyer shows proof of insurance. A second 60-day permit is allowed if the county hasn't completed the title/registration within 60 days.
Colorado-specific things to know
- A wholesaler license is cheaper to run but can only sell to other licensed dealers — a single retail sale off a wholesaler license is a violation.
- The Motor Vehicle Dealer Board screens finances hard: ~$100,000 net worth with ~$25,000 liquid and a 675+ Experian Vantage credit score for each owner, which trips up many first-time applicants.
- Demonstrator plates are available to every licensed dealer, but full-use dealer plates require a starting inventory of more than 50 vehicles or more than 25 sold in the prior 12 months.
- You must have an active DRIVES Dealer Access Portal account to issue temp permits, and you cannot issue one at all without the buyer's proof of insurance (C.R.S. §42-3-105).
Official Colorado resources
- Auto Industry Division — Auto Industry ↗
- AID — Dealer & Wholesaler License ↗
- Colorado DMV — Colorado Dealers ↗
Colorado dealer license FAQ
How much does a dealer license cost in Colorado?+
Original dealer/wholesaler license fee: $900; Renewal dealer/wholesaler license: $734; Salesperson license: $217 original / $168 renewal; Surety bond (face amount): $50,000; Fingerprint-based background check: $39.50; Off-premise permit: $200–$500; Pre-licensing education + Mastery Exam: Varies by provider; Dealer-for-resale title: $25 per title. Plus the $50,000 surety bond (you pay a small annual premium on that, not the full amount).
How big is the dealer bond in Colorado?+
Colorado requires a $50,000 surety bond. Motor vehicle, used, wholesaler, wholesale auction, powersports and business-disposal dealers each post a $50,000 surety bond (Form DR 2830) under C.R.S. §44-20-112(1)/§44-20-412(1). The aggregate liability for one license year cannot exceed the bond amount, and the annual premium you actually pay is a fraction of the $50,000 face value, based on credit.
Do you need a physical lot to get a dealer license in Colorado?+
An established, permanent Colorado place of business that AID can inspect — a proper office, display area, business records on site, and posted signage. Home-based used-retail lots rarely qualify. The Motor Vehicle Dealer Board also imposes a financial-fitness bar: applicants must show roughly $100,000 total net worth (about $25,000 of it liquid) and every owner needs an Experian Vantage credit score of 675 or higher.
How many cars can you sell in Colorado without a dealer license?+
Selling three or more motor vehicles — or offering more than three at one address or phone number — in a calendar year is prima facie evidence you're a dealer and need a license (ten or more for powersports vehicles).
How long is a Colorado dealer license valid?+
One-year license term; dealer, wholesaler and salesperson licenses renew annually through AID (the fee schedule runs on a July 1–June 30 cycle), with a $50 late fee for missing the deadline.
Is dealer training or an exam required in Colorado?+
New applicants for a used motor vehicle dealer, wholesaler, wholesale auction or used-powersports license must complete Board-approved pre-licensing education and pass the AID Mastery Exam (C.R.S. §44-20-118(7)). Anyone who has held one of those licenses within the last three years is exempt from the class.
How do temporary tags work for Colorado dealers?+
Colorado dealers issue 60-day temporary permits through the DRIVES Dealer Access Portal after enrolling via Third-Party Access (3PA). Permits must be printed and attached to a department-approved mounting board, and by law (C.R.S. §42-3-105) you cannot issue a temp tag unless the buyer shows proof of insurance. A second 60-day permit is allowed if the county hasn't completed the title/registration within 60 days.
Data verified 2026-07-17. Requirements change — confirm with the Colorado Department of Revenue — Auto Industry Division (AID) & Motor Vehicle Dealer Board before filing.
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