Getting a used car dealer license in Colorado

In Colorado, used-car dealers are licensed by Colorado Department of Revenue Auto Industry Division / Motor Vehicle Dealer Board.

Before your first retail sale you’ll need a $50,000 surety bond, a pre-licensing course and a business location that meets the state’s rules.

This page gathers what a new independent lot needs, each fact linked to the official source it came from.

Details re-checked against official sources

At a glance

License
Used motor vehicle dealer sbg.colorado.gov (source, opens in a new tab)
Issued by
Colorado Department of Revenue Auto Industry Division / Motor Vehicle Dealer Board sbg.colorado.gov (source, opens in a new tab)
Surety bond
$50,000 dealer/wholesaler bond in official 9/30/2024 checklist. sbg.colorado.gov (source, opens in a new tab) That’s the bond’s face amount, not what you pay: a surety company charges a yearly premium, usually a small percentage of it, set mainly by your credit.
Pre-licensing course
Pre-license education certificate required by checklist. sbg.colorado.gov (source, opens in a new tab)
Exam
Mastery examination required; DR2097 examination affidavit signed by applicant and administrator. sbg.colorado.gov (source, opens in a new tab)
Official fees
For licenses issued July 1, 2026 to June 30, 2027: original dealer license $900, renewal $734; original salesperson license $217 (renewal $168); each additional location $376. Fees change every July 1. sbg.colorado.gov (source, opens in a new tab)

Step by step

  1. Make sure you need a used dealer license

    Colorado's Auto Industry Division and Motor Vehicle Dealer Board, part of the Department of Revenue, license used motor vehicle dealers. A wholesaler license doesn't allow retail sales, and salesperson, powersports, auction and franchise licenses are separate. sbg.colorado.gov › AID_DR 2248_9_30_24.pdf (source, opens in a new tab)

  2. Check you qualify financially first

    The application includes a financial condition statement (DR2114) with supporting asset and bank records, for the business and its owners; an older Division checklist sets net worth at $100,000. Documenting this is the hardest part, so do it before you spend on premises. Keep personal and business assets separate. sbg.colorado.gov › AID_DR 2248_9_30_24.pdf (source, opens in a new tab)

  3. Education and the mastery exam

    Complete the pre-license education and pass the mastery exam; you and the exam administrator both sign the DR2097 affidavit. sbg.colorado.gov › AID_DR 2248_9_30_24.pdf (source, opens in a new tab) sbg.colorado.gov › AID Study Guide 11-1-24.pdf (source, opens in a new tab)

  4. Set up the business and premises

    Register the entity and DBA, get a sales tax license, and secure the site. You need display space for at least one vehicle and a permanent, enclosed office with electricity, restrooms and safe records, used only by your dealership. Post your hours: at least 3 days a week, 4 continuous hours a day between 8 a.m. and 9 p.m. Put up a permanent sign with your licensed name; a temporary one is fine while the permanent sign is on order. The site must meet local zoning, and a lease must allow dealer use, signs and display. sbg.colorado.gov › AID_DR 2248_9_30_24.pdf (source, opens in a new tab) sbg.colorado.gov › place-of-business-requirements-auto-industry-division (source, opens in a new tab)

  5. Bond, fingerprints and paperwork

    Get the $50,000 bond, fingerprint verification (DR2197), ownership addenda (DR2109B), the premises affidavit (DR2044) and a business plan. Make sure the bond's principal and DBA match the application. You don't pay that amount: a surety company charges you a premium, a fraction of it, set mainly by your credit. sbg.colorado.gov › AID_DR 2248_9_30_24.pdf (source, opens in a new tab) sbg.colorado.gov › AID_DR_2044_e_wo_5_27_2021.pdf (source, opens in a new tab)

  6. Apply

    Submit the application (DR2109) with everything on the DR2248 checklist for Division and Board review. For licenses issued July 2026 to June 2027, an original dealer license is $900 and an original salesperson license $217. Fees change every July 1. sbg.colorado.gov › AID_DR 2248_9_30_24.pdf (source, opens in a new tab) sbg.colorado.gov › AID_DR_2044_e_wo_5_27_2021.pdf (source, opens in a new tab)

The location

Display lot
Space to display one or more vehicles. The display area, office and entrance are used only for your dealership; they can't be shared with another business. sbg.colorado.gov (source, opens in a new tab)
Office
A permanent, enclosed office large enough for the dealer's office, with electrical service and adequate restrooms, and books and records stored safely and available for inspection. Hours posted, and open at least 3 days a week for 4 continuous hours a day between 8 a.m. and 9 p.m. sbg.colorado.gov (source, opens in a new tab)
Sign
A permanent sign with the dealer's licensed name, clearly visible from outside the building or from the building's public entry area. A temporary sign is accepted while a permanent one is on order. sbg.colorado.gov (source, opens in a new tab)
Zoning and home-based lots
The site must comply with local zoning. You must own or lease the property, and a lease must allow dealer operations, signage and display space. sbg.colorado.gov (source, opens in a new tab)

Before you apply

Entity/good-standing and DBA documents, sales-tax license, ownership addenda, fingerprint verification, business plan, DR2114 financial statements and supporting asset/bank records. Older checklist specifies $100,000 net worth. sbg.colorado.gov (source, opens in a new tab)

Forms

DR2248 checklist; DR2109 application; DR2109B ownership addendum; DR2097 exam affidavit; DR2197 fingerprint verification; DR2114 financial condition; DR2044 premises affidavit; DR2640 plate affidavit. Checklist links document names. sbg.colorado.gov (source, opens in a new tab)

Get the current versions from sbg.colorado.gov; we don’t host copies.

Not the license you’re after?

Wholesaler is not retail authority; salesperson, powersports, auction and franchise dealer categories are different. sbg.colorado.gov (source, opens in a new tab)

What trips people up

Our read of the requirements above, not official guidance or statistics.

The hardest part: documenting financial eligibility for both business and owners before investing in premises.

Easy mistakes:

Questions

How much does a Colorado dealer license cost?

$900 for an original dealer license and $217 for a salesperson license (July 2026 to June 2027 fees); renewal is $734. The bond premium and premises cost more, and you have to meet the financial requirements. sbg.colorado.gov › DR 2246 - Fee Schedule 2026-2027.pdf (source, opens in a new tab) sbg.colorado.gov › fee-schedule-auto-industry-division (source, opens in a new tab)

Is there a test?

Yes, a mastery exam, documented on the DR2097 affidavit. sbg.colorado.gov › AID_DR 2248_9_30_24.pdf (source, opens in a new tab) sbg.colorado.gov › AID Study Guide 11-1-24.pdf (source, opens in a new tab)

What hours do I have to keep?

At least 3 days a week, for 4 continuous hours a day between 8 a.m. and 9 p.m., posted at the dealership. sbg.colorado.gov › place-of-business-requirements-auto-industry-division (source, opens in a new tab)

Sources

Not affiliated with the Colorado DMV. Not legal advice. Requirements change; always confirm with the state.