CO Dealers and Auto Industry
There is no way for drivers to obtain driver services if they don't first have a vehicle, which is typically purchased from a dealership. While private sales take place often, dealerships and other auto industry professionals in Colorado are what keep the streets buzzing, providing the vehicles that drivers are looking for. When it comes to starting a dealership in Colorado or operating your auto industry business within the state, you should know the requirements that you must first follow.Colorado Dealer Licensing
If you sell 3 or more vehicles in the state of Colorado from the same address during the same year with the purpose of obtaining profit, whether new or used, you are considered to be a dealer and dealer licensing applies to you.
The Colorado MVDB, Motor Vehicle Dealer Board, is a group of nine members who are appointed to a term of 3 years each by the Colorado Governor to regulate the auto industry within the state. If you are considered a dealer in the state, you must be issued a license from the MVDB first.
You can apply for several different Colorado dealer's licenses, including:
- New
- Used
- Wholesale
- Wholesale Auction
- Buyer Agent
- Salesperson
While there is a great deal of work to do to receive your dealer's license, you have many different resources from the MVDB enforcement arm, and the Auto Industry Division. You can start with by visiting Other Dealer Forms
To view the Dealer/Wholesaler Application Information Sheet.
- You will get a full overview of the methods by which you can get your dealer's license, including the review process and application requirements of the MVDB from the information sheet, including a Dealer Packet Request form that you can complete and fax to the Auto Industry Division at 1-303-205-5977. If you prefer, you can also mail the form in to the following address:
AID
Denver, CO 80261-0016
You can also obtain the packet forms in PDF printable versions from the AID website at Other Publications.
Requirements for Colorado Dealer License
- View Dealer License Application information available online
- Complete Addendum to the Original Application, found online
- Provide Statement of Financial Condition, available online
- Complete Place of Business Affidavit, which you can print. You will be required to take and submit the appropriate photos.
- Complete Dealer Plate Affidavit
- Provide evidence of sales tax license or complete Colorado Business Registration which can be found online at Colorado Sales Tax / Wage Withholding Account Application, with instructions provided.
- Provide proof of surety bond of $30,000. You can obtain the forms from a bank or insurance company near you. For an online sample, visit Application Form.
- If you haven't already been licensed, you must complete the Mastery Exam with a score of 100%. You can get the instructions for the exam at Auto Industry. You can also take the exam by following the instructions and selecting the appropriate exam at the Mastery Exam.
- You must have a $50,000 minimum net worth.
- You will be required to submit to a credit report check, which must show a minimum score of 600.
- All applicants must submit to background check, with a presentation of any prior arrest court reports.
- If you are franchising, you will require a copy of the manufacturer's agreement, upon that manufacturer's letterhead.
- Pay all appropriate fees, which you can determine by visiting Manufacturer / Distributor License Application
Department of Revenue
Auto Industry Division
Denver, CO 80261-0016
Or you could just drop it off yourself at:
Department of Revenue
Auto Industry Division
1881 Pierce, Room 142
Lakewood, CO 80214
You must pay by check, written payable to Department of Revenue. Expect the review process to take at least 2 – 4 weeks.
Colorado Salesperson License
If you plan to sell vehicles in Colorado, you will be required to obtain your vehicle salesperson license. The process is completed through the Auto Industry Division, AID, of the Department of Revenue.
Salesperson License Law Manual
To sell vehicles efficiently in the state, it is a good idea to study up on the Colorado Motor Vehicle Industry License Law Manual. The manual consists of 28 pages, providing the detailed information you need to learn about dealership/salesperson laws in Colorado.
Requirements for Licensing
- Must have current employment within Colorado dealership.
- Must complete, submit and download from Motor Vehicle Salesperson License Application.
- Score 100% on Mastery Exam.
- Complete your exam affidavit, which can be obtained through Mastery Exam.
- Must submit Surety Bond of at least $5,000.
- Pay $100 salesperson license application fee.
Submit your application and all appropriate fees by check to:
Department of Revenue
Auto Industry Division
Denver, CO 80261-0061
Or you could submit in person at:
Auto Industry Division
1881 Pierce St.
Lakewood, CO 80214
Waiting for Your License
The Colorado Dealer Board reviews your application, immediately issuing a temporary license while your case is reviewed. The review process can take a few weeks. If the Dealer Board feels that your information is sufficient, the temporary license you were issued will upgrade to permanent status.
However, if they deny your application, you will receive a Notice of Denial detailing why your application was denied and that your must discontinue sale of vehicles in Colorado.
License Fees
There are various fees assessed based on the purpose of application.
- $100 original license fee
- $55 license renewal fee
- $55 multiple dealership additional license fee
- $55 Salesperson reissue fee
- $25 late fee
Renewing Your License
When it is time to renew your salesperson license, the Dealer Board will mail your renewal form to the dealership. You must complete and mail back the form through the dealership, with a new bond or continuation certificate, including the $55 renewal fee.
If you have any questions concerning your salesperson or dealership license in Colorado and the processes you must follow, you can call the AID at 1-303-205-5604.