To apply, you must:
10 Colorado Dealer License Requirements
Dealer Licenses are issued by the Colorado Motor Vehicle Dealer Board through the Auto Industry Division of the Department of Revenue. This page covers Colorado's 9 license types, their requirements, bond size, costs, and how to apply.
Name your Dealership
Your company name is the first step to a Colorado Dealer License, because you use it through the entire process. Colorado's Dealer application accepts 5 business types: an individual (sole proprietor), a partnership, a limited liability partnership, a corporation, or an LLC.
Most Dealers pick an LLC or a corporation. An LLC keeps your business separate from your personal life and adds trust to the name.
Decide who owns the business before you apply. Each owner, partner, LLC member, or officer files an addendum (DR 2109-B) and clears the same fingerprint and financial checks. Adding an owner later is a Change of Ownership, reported within 10 days, and the new owner must qualify.
Choose your Dealer License Type
Colorado also runs a parallel set of licenses for powersports vehicles. Most people start with the Wholesaler's License because you can run your business from home. The Used Motor Vehicle Dealer's License sells used vehicles to the public.
| License Type | What It Lets You Do |
|---|---|
| Wholesaler's LicenseApplication code 2520 | Buy and sell motor vehicles with licensed Dealers and at dealer auctions, from a home office. Up to 2 named owners may sell under it; a wholesaler may not employ a salesperson. Powersports vehicles need the Wholesale Powersport Vehicle Dealer license |
| Used Motor Vehicle Dealer's LicenseRetail. Application code 2510 | Sell used motor vehicles to the public, and broker vehicles you do not own on a limited basis. Up to 2 named owners may sell under it. Powersports vehicles need the Used Powersport Vehicle Dealer license |
| Motor Vehicle Dealer's LicenseNew and used. Application code 2500, franchised | Sell new and used motor vehicles as a franchised dealer. Up to 2 named owners may sell under it. Powersports vehicles need the Franchise Powersport Vehicle Dealer license |
| Wholesale Motor Vehicle Auction Dealer's LicenseApplication code 2530 | Run a wholesale auction for Dealers. Also requires check-and-title insurance, or written guarantees, for its customers |
| Business Disposal License | Sell used vehicles your business owned for more than 1 year, as long as vehicle sales stay under 20% of gross revenue. No class, no exam |
| Buyer Agent's License | Issued by the Board's Executive Director directly, not the full Board. Requires a $5,000 bond; no class, no exam |
| Motor Vehicle Salesperson's License | Sell as an employee of a licensed Dealer; the license is mailed to and posted by your employer. Requires a $15,000 bond and the Mastery Exam |
| Manufacturer's or Distributor's License | For vehicle manufacturers and distributors. No class, no exam |
| Manufacturer Representative's License | For a manufacturer's representative. No class, no exam |
Get your Dealer Bond (Surety Bond)
A Colorado Dealer License requires a $50,000 bond (C.R.S. 44-20-112). That amount applies to the Motor Vehicle Dealer, Used Motor Vehicle Dealer, Wholesaler, Wholesale Auction Dealer, and Business Disposal licenses. The bond covers a customer who is harmed if a Dealer breaks Colorado's Dealer law. A Buyer Agent license requires a $5,000 bond.
You only pay the premium: a $50,000 Wholesaler bond starts at $500 a year, set after a credit check. You file the bond with the Board. A savings account, deposit, or CD under C.R.S. 11-35-101 may substitute for it.
Apart from the Wholesale Auction Dealer's check-and-title insurance, Colorado requires no insurance policy to issue a license.
Dealer 101 Insurance Services
Licensed in Colorado · NPN 22346185
| License Type | You Pay | Bond Amount |
|---|---|---|
| WholesalerVehicle Wholesaler | $500/yearabout $42 a month, after a credit check | $50,000 |
| Used Motor Vehicle Dealer | $400/yearabout $33 a month, after a credit check | $50,000 |
| Motor Vehicle DealerNew and used, franchised | $400/yearabout $33 a month, after a credit check | $50,000 |
| Wholesale Motor Vehicle Auction DealerWholesale Motor Vehicle Dealer Auction-Dealer | $400/yearabout $33 a month, after a credit check | $50,000 |
| Business DisposalBusiness Disposal Dealer | $500/yearabout $42 a month, after a credit check | $50,000 |
| Small utility trailer dealersSmall Trailer Dealers | $100/yearthe minimum premium, after a credit check | $5,000 |
| Motor Vehicle SalespersonMotor Vehicle Salesperson or Powersports Vehicle Salesperson | $100/yearthe minimum premium, instant issue | $15,000 |
Set up your Dealer Office
A Colorado Wholesaler can run their business from home. The Board's rule requires only “a place of business with a business office” (1 CCR 205-1). The state's own Place of Business Affidavit asks a wholesaler for a “residence phone number” instead of the retail checklist.
A Motor Vehicle Dealer or Used Motor Vehicle Dealer (the retail licenses) requires a “principal place of business” devoted exclusively to the dealership. A room in a dwelling never qualifies unless the entire ground floor is commercial and the office sits on it.
The statute sets no office requirement at all for a Buyer Agent, Business Disposal Dealer, manufacturer, distributor, or manufacturer representative.
| Wholesaler | Dealer (retail) | |
|---|---|---|
| Structure | A place of business with a business office; a home office qualifies | A permanent enclosed building, used exclusively for the dealership, large enough for the office and records |
| Office | Where your books and records are kept | Electrical service and a private restroom with a flush or portable chemical toilet |
| Vehicles | No display area required | Contiguous space to display one or more vehicles |
| Signage | Not required | A permanent sign with your licensed name, visible from outside the building or the public entry area. No size rule |
| Hours | No posted hours | Open at least 3 days a week, 4 continuous hours a day, between 8 a.m. and 9 p.m. |
| Zoning | Not on the wholesaler's affidavit | You certify compliance with local zoning; the license never overrides it |
| You certify | The address and a residence phone number, on the Place of Business Affidavit | All items on the Place of Business Affidavit, under penalty of perjury |
Attend the Pre-Licensing Education Class — 3 of 9 license types
Colorado requires an 8-hour pre-licensing class for 3 of its 9 license types (C.R.S. 44-20-118(7)). They are the Used Motor Vehicle Dealer, Wholesaler, and Wholesale Auction Dealer licenses.
The other 6, including the new-vehicle Motor Vehicle Dealer and the Salesperson, take no class. If you held a Colorado dealer, wholesaler, or powersports dealer license within the last 3 years, you are exempt.
Colorado approves one provider statewide: the Colorado Independent Automobile Dealers Association (CIADA), with scheduled classes in Lakewood and Montrose. CIADA sets the tuition, not the state.
Pass the Mastery Exam — 5 of 9 license types
Colorado requires the Mastery Exam for 5 of the 9 license types (C.R.S. 44-20-116): Motor Vehicle Dealer, Used Motor Vehicle Dealer, Wholesaler, Wholesale Auction Dealer, and Salesperson. Buyer Agents, Business Disposal Dealers, manufacturers, distributors, and manufacturer representatives take no exam.
The Mastery Exam:
- 60 questions, 90 minutes, and 85% to pass
- Open book: notes and study guides are allowed
- Computerized, with a maximum of 2 attempts per calendar day
- Given by a licensed Dealer or an approved administrator: CADA, CIADA, PDAC, or CAPSS
- For a corporation, the managing officer takes it; for a partnership, every general partner does
- Exempt if you held a license within the previous 12 months; a passing score expires if you are not licensed within 1 year
Pass the Background Check (Fingerprint Verification)
Colorado runs a fingerprint-based criminal history check on every owner, partner, LLC member, and officer with a first application (C.R.S. 44-20-118(8)). Prints go to the CBI, then the FBI; the check costs $39.50. Fingerprinting is by appointment at the Division's Lakewood office.
What a record does:
- Mandatory denial for 3 years: a felony under Title 18, Articles 3, 4, or 5 of Colorado law. The same for odometer, salvage, or title fraud, or defrauding a retail consumer (C.R.S. 44-20-121(8))
- The 3 years run from the conviction or the end of incarceration, whichever is later, if you pick up no other conviction. After that the mandatory rule no longer applies, except to a crime directly related to the auto industry
- Any other felony is up to the Board's discretion, with no time limit
- A misdemeanor cannot trigger the automatic denial, but every felony or misdemeanor conviction must be disclosed with court documents
- An arrest without a conviction is not a bar; a no-contest plea counts as a conviction
- If the Board denies you, you have 60 days to request a hearing
Submit your Dealer License Application
You apply online through Colorado's licensing portal. The license costs $900 for a Dealer or Wholesaler and $217 for a Salesperson. Every owner, partner, LLC member, or officer files an Addendum (DR 2109-B) with their own SSN and date of birth.
You do not need to live in Colorado, and you name no in-state agent. By signing the application you appoint the Board's Executive Secretary as your agent for service of process. If you withdraw before the license issues, Colorado refunds half the fee.
The Division's own FAQ puts most background investigations at 30 to 60 days, not guaranteed. The Board may issue a temporary license for up to 120 days while it finishes.
Certify your Location (Place of Business Affidavit)
Colorado sends no inspector to your location before the license issues. Instead you certify your place of business on the Place of Business Affidavit (DR 2044), signed under penalty of perjury. A false statement is a Class 1 misdemeanor and can void the license.
Get your Dealer License Plates
Colorado dealer plates come from your county clerk, not the Auto Industry Division (in Denver, the Manager of Revenue). A copy of your Dealer License is the purchase authorization. Dealers, Wholesalers, and Business Disposal Dealers may buy as many demo plates as needed.
Demo plates, also called dealer tags, let you drive the vehicles you own and offer for sale, and move between them. A $5 depot tag covers moving a vehicle for testing, repair, or delivery only, never private use.
Full-use dealer plates work like an ordinary registration, but the state gates them behind one of three tests:
- more than 25 vehicles sold in the previous 12 months
- buying an existing dealership or wholesale business with that sales record
- a starting inventory of 50 or more vehicles
A full-use plate may go to an owner, an employee, a customer on business, or a spouse or dependent child living in your household. It is valid up to 1 year and must be returned within 10 days if you sell or close the business.
Dealer License Cost
A Colorado Dealer, Wholesaler, Wholesale Auction, Business Disposal, or Buyer Agent license costs $900 to start and $734 to renew each year. A Salesperson or Manufacturer Representative license costs $217 to start and $168 to renew. The table holds every other fee.
| Fee | Amount |
|---|---|
| Dealer, Wholesaler, Wholesale Auction, Business Disposal, or Buyer Agent license | $900 original$734 renewal, each year |
| Manufacturer or Distributor license | $900 original$734 renewal |
| Salesperson or Manufacturer Representative license | $217 original$168 renewal |
| Dealer Bond | $500 a year, Wholesaler or Business Disposal, base rate$400 a year, Motor Vehicle Dealer, Used Dealer, or Wholesale Auction Dealer, base rate$100 a year, small trailer dealer or Salesperson (minimum premium) |
| Fingerprint background check | $39.50 |
| Dealer title fee, processed at the county | $25 |
| Pre-licensing class | Tuition set by CIADA, the approved provider |
| Late renewal fee | $50, within the 30-day grace period |
| Additional location | $376 |
| Change of address, license class, ownership, or name | $217 each |
| License reprint | $25 |
| Off-premise sales permitTo sell at a show or event away from your location, with Board approval | $200 Class One, negotiate only$500 Class Two, sign on site |
| Depot tag | $5, to move a vehicle for testing, repair, or delivery |
| Full-use dealer plate | Set each year by the Department of Revenue |
Dealer License Renewal
A Colorado Dealer License is valid for one year following the month of issuance and expires on the last day of that month. Renewal costs $734 for a Dealer or Wholesaler license and $168 for a Salesperson, with no new fingerprints.
- Issued any day in September, for example, the license expires September 30 of the following year
- Renewal is a matter of right unless the license was suspended, revoked, or surrendered, or the place of business sat abandoned for more than 30 days
Common Questions
Can you get a Dealer License in Colorado without a lot?
Yes, on the Wholesaler's License. Colorado's rule requires only “a place of business with a business office” for a wholesaler. The affidavit even asks a wholesaler for a residence phone number. Retail Dealers need a principal place of business, and a home qualifies only if its entire ground floor is commercial.
How many cars can you sell in Colorado without a Dealer License?
Colorado sets no fixed number of cars you can sell without a Dealer License. The law looks at whether you sell to make a profit or as a business (C.R.S. §44-20-102).
Can you get a Colorado Dealer License with a felony?
Not automatically. Colorado must deny you for 3 years after a felony under Title 18, Articles 3, 4, or 5, or a vehicle or consumer fraud crime (SB 25-075). The clock runs from conviction or release, whichever is later. Any other felony is a Board decision with no time limit.
How much is a dealer license in Colorado?
$900 for a Dealer, Wholesaler, Wholesale Auction, Business Disposal, or Buyer Agent license, and $734 a year to renew. Add $39.50 for fingerprints and the bond: a $50,000 Wholesaler bond starts at $500 a year. The full cost table lists every other fee.
Does Colorado require a dealer license exam?
Yes, for 5 of the 9 license types: Motor Vehicle Dealer, Used Motor Vehicle Dealer, Wholesaler, Wholesale Auction Dealer, and Salesperson. The Mastery Exam is a 60-question, open-book, computerized test with 90 minutes and an 85% passing score. Two attempts a day are allowed.
How long does it take to get a Colorado Dealer License?
Colorado publishes no fixed deadline. The Auto Industry Division's own FAQ says most background investigations finish in 30 to 60 days, and some take longer. The Board may issue a temporary license for up to 120 days while it completes its investigation (C.R.S. 44-20-104(3)(c)).
Does Colorado inspect your dealership before issuing the license?
No. Colorado has no scheduled site inspection; you certify your location on the Place of Business Affidavit under penalty of perjury. The Board keeps the right to inspect a dealership at any reasonable time, and your books and records with cause.
Do I need a business bank account?
No. No Colorado form or rule requires a separate business bank account. The financial statement may use 12 months of bank statements to show cash, and the checklist asks you not to mix personal and business assets.
Support
The Colorado Auto Industry Division answers Dealer and Wholesaler licensing on one line and consumer complaints on another. Dealer plates are a county clerk question.
| Contact | Detail |
|---|---|
| Department | Colorado Department of Revenue, Specialized Business Group — Auto Industry Division |
| Phone | (303) 205-5604 Dealer and Wholesaler licensing(303) 866-2532 Consumer complaints |
| Hours | Fingerprinting by appointment, 9:00 a.m. to 3:00 p.m., Monday to Friday |
| [email protected], licensing[email protected], complaints | |
| Address | 1707 Cole Blvd, Suite 300Lakewood, CO 80401Mail: PO Box 17087, Denver, CO 80217-0087 |
Additional sources (9)
The forms and the portal for each step are linked in the steps. These are the law, the rules, and the agency pages the page was checked against.
- Colorado Revised Statutes, Title 44, Article 20 (PDF) — the Dealer law: license types, the $50,000 bond, the office rule, the Mastery Exam, and grounds for denial
- C.R.S. 42-3-116, Title 42 (PDF) — dealer plates: demo plates, the three full-use tests, and who may drive on them
- Senate Bill 25-075 — the 2025 act that cut the mandatory conviction window from 10 years to 3, effective August 6, 2025
- Fee Schedule 2026–2027 (DR 2246) — every state fee in the cost table
- Net Worth Guidance for Dealer Applications — the Board's $100,000 net worth, $25,000 liquid, and 675 credit score policy
- Statement of Financial Condition (DR 2114) — the personal financial statement each owner files; it authorizes the credit report
- Addendum (DR 2109-B) — the per-owner form with SSN and date of birth
- Ownership Change (Auto Industry Division) — the 10-day reporting rule and the qualifications a new owner must show
- Sunset review of the Motor Vehicle Dealer Board (COPRRR) — Part 1 of the Dealer law is scheduled for review before it repeals on September 1, 2027. The review is in progress
