Dealer Surety Bond in Colorado: $10,000–$100,000 Requirement
Colorado requires all licensed dealers to maintain a $10,000–$100,000 surety bond. Here is exactly what you need, what it costs, and what happens when a claim is filed.
Bond Requirement at a Glance
Amount varies by state and dealer license category. Contact your state DMV for the exact requirement.
Who Needs a Surety Bond in Colorado
Most states require a surety bond as a condition of obtaining and maintaining a dealer license.
- New vehicle dealer
- Used vehicle dealer
- Wholesale dealer
- Motorcycle dealer
How to Get a Bond in Colorado
Where to get it: Any state-licensed surety company
Use the state DMV-approved bond form. File with your dealer license application.
Annual Premium Cost
0.5%–3% of bond face value per year
Premium is based on your personal credit score. Good credit = lower annual cost.
How Claims Work
Injured buyer files with state DMV or directly with the surety company.
Valid claims are paid up to the bond face value. Dealer must reimburse the surety for any paid claims.
Penalties for Operating Without a Bond
Colorado-Specific Note
Colorado-Specific Facts for Dealer Surety Bond
Colorado Vehicle transfer fees and requirements
In Colorado, the title transfer fee is $7.2 and registration costs $50 - $100+ based on vehicle weight and age. Vehicle sales are subject to 2.9% state plus local taxes; ownership tax based on age. Colorado does not require notarization for private-party vehicle transfers. Emission testing is required in Colorado — verify the vehicle passes before completing the sale.
- Emissions testing required in Denver metro and northern Front Range
- Ownership tax calculated based on vehicle taxable value
- VIN verification required for out-of-state vehicles
Official Colorado bill of sale form
The official Colorado bill of sale form is DR 2173 (Bill of Sale for a Motor Vehicle). BillOfSaleNow generates a document that meets all Colorado requirements and can be used in place of the official form.
Colorado sales tax on vehicle purchases
Colorado has a 2.9% state sales tax rate. 2.9% state plus county/city taxes (total 3–10%). Private-party vehicle sales in Colorado are subject to sales tax. Sales tax applies; ownership tax also assessed based on vehicle age. The title transfer fee is $7.
Colorado bill of sale statistics
BillOfSaleNow has generated 1,683 bill of sale documents for Colorado transactions, with 45 generated this month alone. The most popular vehicle type is car.
More Colorado Vehicle Guides
- Sell Car With Suspended License in Colorado
- EV Tax Credit in Colorado
- Emissions Inspection in Colorado
- Extended Warranty Cancellation in Colorado
- Fleet Vehicle Sale in Colorado
- GAP Insurance Claim in Colorado
Each guide is written specifically for Colorado laws, agencies, and procedures. Bookmark for future reference.
Frequently Asked Questions
How much is a dealer surety bond in Colorado?
Colorado requires a $10,000–$100,000 surety bond for licensed dealers. Amount varies by state and dealer license category. Contact your state DMV for the exact requirement.
Who requires a dealer surety bond in Colorado?
State DMV or Motor Vehicle Division requires the bond. Most states require a surety bond as a condition of obtaining and maintaining a dealer license.
How much does a dealer surety bond cost annually in Colorado?
Expect to pay 0.5%–3% of bond face value per year. Premium is based on your personal credit score. Good credit = lower annual cost.
What happens if a Colorado dealer doesn't have a surety bond?
Dealer license denial, suspension, or revocation. Possible criminal charges for operating without a bond.
How does a surety bond claim work in Colorado?
Injured buyer files with state DMV or directly with the surety company. Valid claims are paid up to the bond face value. Dealer must reimburse the surety for any paid claims.
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Generate Bill of SaleSource: State DMV Dealer Licensing Division. Verify current bond amounts with your state DMV before purchasing.