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Colorado Dealer License

If you want to obtain an Colorado Dealers license all you need to do is submit a dealer application to the Colorado State Police, obtain a dealer surety bond form an insurance agency or bonding company, get insurance, have a building and lot, post a sign on you building and submit some photographs, , I am going to show you how to easily obtain your Colorado dealers license.

I want you go in depth in the 6 Steps to an Colorado Dealers License


Step 1-Complete Application
The first thing you need to do to obtain an Colorado dealers license is to complete an Colorado dealer license application in it’s entirety.
If you make mistakes on the application it will be returned, so you want to spend some time and ensure there are not mistakes on the application.
A separate application must be submitted for each type of license, entity change, change location or name change, branch or subsequent dealer license.
If there is a change in business entity, after you become a licensed dealer, a new application must be submitted with all applicable paperwork, including a new bond and a new dealer license number will be assigned.
You can download your application at the www.Colorado.gov/Revenue/AID , lets take a look at an Colorado dealers license application:



Step 2 Dealer Surety Bond
You must obtain a $50,000 dealers surety bond in order to obtain an Colorado dealers license. The bond must be a surety bond eecuted by an insurance or bonding company authorized to do business in Colorado
You can obtain a dealer surety bond form a bonding company or possibly your insurance agent
A bond ensures that you will operate your Colorado Dealership with the highest level of ethical standards
If you are currently licensed dealer in the state or if you provide dealer surety bonds to dealers in Colorado please comments or contact information below to let everyone know a great place to obtain a Colorado dealer surety bond

Step 3-Statement of Financial Condition
Colorado Statement of Financial Condition (DR 2114) — A financial statement is required for the applicant and each owner, member, or partner. If filing as a corporation or LLC a financial statement is also required. We must know how the corporation or LLC will be funded. All financial statements must be completed on the DR 2114. No other financial statement forms will be acceptable. Please do not mi your personal assets and liabilities with the corporation or LLC. The corporation or LLC must have its own assets/liabilities.
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Step 4-Building & Lot
You must have a building for your Colorado dealers license. Your business building must be a permanent enclosed building owned or leased by you, your lease can never end before you dealers license epires. with sufficient space to display two or more vehicles of a kind of vehicle you will be selling. The established place of business must be devoted mainly to the operation of your dealership
A dealer may use a trailer as you building but state law requires you to remove the wheels.
A wholesale motor vehicle dealer may operate from a location zoned for residential use.
Whether you are a retail dealer or a wholesale dealer you must meet local zoning requirements. You can contact the city hall or county court house’s planning a zoning division to ensure the location you want to use as your dealership meets all local zoning requirements for an Colorado Dealers license. Applicants should contact their local city or county office to ensure compliance with local zoning ordinances.

Step 5 Business Sign & Photos
The sign must be permanently erected on the ground or permanently attached to your business building. The sign must indicate that the business of a motor vehicle dealer or automotive recycler is conducted at or from the premises. I want to repeat that: The sign must indicate that the business of a motor vehicle dealer or automotive recycler is conducted at or from the premises. banners will not be accepted
A wholesale motor vehicle dealer or broker must erect a permanent sign (no size requirement) at the entrance of the place of business. The sign must state the business name and indicate that the business of a wholesale motor vehicle dealer or broker is conducted at or from the premises
You must also enclose photographs of your building including photos of the business, sign, display lot, all 4 sides of building, posted address & hours, office area,
Step 6 Sales Ta License
You must obtain a Colorado Sales Ta License before you can obtain a Colorado Dealers license. You can easily obtain the license buy completing form CR0100AP

Lets take a look as the Colorado Sales Tax application form CR0100AP

Step Number 7-Dealer Class
The State of Colorado is one of the many states that require you to set through a training class before you can obtain your Colorado dealers license. The class takes about 8 hours and you do have to take an easy Mastery eam, which your course provider will assist you with. There only one company in Colorado that is approved by the state to provide your mandatory training classes and they provide training in Denver and Montrose. At this time they are charging $275 dollars for the training class.

Once you obtain your Colorado dealers license you must display the license prominently, you are going to work hard to obtain your Colorado dealers license, you are going to be proud when you obtain your Colorado dealers license, Colorado law requires that you display your dealers license prominently when it is granted, don’t shuve it in some desk drawer, or lock in in a vault, frame your official Colorado dealers license and display it on the wall, all Colorado dealers licenses must be displayed prominently

Once again here is some valuble contact information if you are obtaining an Colorado dealers license for the first time or if you currently have an Colorado dealers license:
Colorado Department of Revenue
www.Colorado.gov/Revenue/AID
Auto Industry Division
PO Bo 17087
Denver, Colorado 80217-0087

303-205-5604
dor_dealers@state.co.us 

Colorado Dealers Licenses are granted by the Colorado Department of Revenue Dealer Board in Denver, Colorado.

To find out how to get an Colorado Dealer License, you can call the Colorado Department of Revenue Dealer Board at 303-205-5696.

You will need to complete the following steps in order to obtain your Colorado Dealers License

1. Dealer Application Download Colorado Dealer License Application

2. Financial statement: In order to obtain a CO Dealers License the Colorado Dealer Licensing Board requires a net worth of $50,000 Download Statement of Financial Condition

3. Credit Bureau Report: You must give the Colorado Dealer Licensing Board a copy of your Credit Report before you obtain a dealer license. You must have a credit score of 600 or higher to obtain a Colorado Dealer License. Contact Experian for a copy of your Credit Report

4. Background Check: You must include a Background Check with your Colorado Dealer License application. Contact the Colorado Bureau of Investigation to obtain a Background Check

5. Place of Business Affidavit: You will need to include a Place of Business Affidavit with your Colorado Dealer License application. Download a Place of Business Affidavit here

6. You must have an enclosed office with electricity and at least one restroom before you apply for your Dealer License

7.You must have space to display one or more vehicle

8. You will need to be open at least 12 hours a week

9. You must have a permanent business sign viewable from the nearest roadway

10.Mastery Examination. You must take a test and score 100%. You can download the test that you will be required to take

11. All business documents such as Articles of Incorporation, must be included in your Dealer License Application packet

12. Any franchise agreement you have must also be included

13. Dealer Plate Affidavit. An application for dealer license plates must be included. Download a Dealer Plate Affidavit here

14. Colorado Sales Tax License. Please include your Colorado Sales Tax License

15. All Fees. Make your check payable to the Colorado Department of Revenue. Click here view the Current Licensing Fees

16. Dealer Bond: You must include a bond in the amount of $50,000. Click here to obtain a Colorado Dealer Bond

If you have further questions about a Colorado Dealer License, you can call the Colorado Department of Revenue Dealer Board at 303-205-5696.

Click here for a free Colorado Dealer Insurance Quote!

Good Luck In Obtaining Your Colorado Dealer License!

We are here to help you maintain your Dealership Compliance!

Dealer License  

Delus Johnson-Lead Instructor
Automobile Dealer Training Association