How to get a Colorado Dealer License [Only 5 steps!]

How to get a Colorado Dealer License [Only 5 steps!]


If you plan on selling more than three
vehicles in a year then you will need to get a Colorado dealer license. If you
aren’t sure if you need a dealer license watch our other video. The first step is
to make sure that you qualify. All applicants should meet the following
criteria: have a net worth of at least $100,000, have a vantage score of at
least 701, and pass a criminal background check. Colorado states that they will not
issue a license if you have been convicted of a felony within the last
ten years if that felony falls into a specific category. You can read about the
categories on their website. Step two is to complete the Colorado dealer license
application. Be sure to apply for the correct license type: franchise dealers
can sell new vehicles, used dealers can sell used vehicles, wholesale dealers can sell
to other licensed dealers, and wholesale auction dealers can conduct wholesale
auctions. Step three is to complete the other licensing requirements. This
includes, but is not limited to, completing a pre-licensing education
course, providing photographs of your business, and getting a sales tax ID
number. The fourth step is to purchase your motor vehicle dealer bond. A motor
vehicle dealer bond protects your customers in case you run an unethical
business. This is not the same as insurance but it is a requirement before
you can get your license. The bond amount has been set at $50,000 but you won’t
pay that amount, you will pay anywhere from one to fifteen percent of the bond
amount. You can get your bond from a surety bond company.
The final steps are to pay your licensing fees and submit your paperwork.
Be sure to check the Colorado website as they have fairly strict submission
guidelines

About the Author: Michael Flood

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