How to Become a Car Dealer in Colorado

Intro

Thinking of launching a car dealership in Colorado? The Colorado Auto Industry Division (AID) oversees dealer licensing, with specific requirements to ensure consumer protection and business credibility. Follow these steps to get licensed.

Step 1: Eligibility Requirements

• Minimum net worth of $100,000

• Credit score of at least 701

• Background check and fingerprinting required

Step 2: Select License Type

• Options: Franchised, Used, Wholesale, or Auction dealer

Step 3: Business Location

• Permanent, commercially zoned location with office, signage, restroom, and space to display at least one vehicle

Step 4: Pre-Licensing Education & Exam

• 8-hour pre-licensing course through CIADA

• Pass a mandatory dealer exam

Step 5: Bond & Insurance

• $50,000 surety bond required

Step 6: Submit Application

• Complete DR2109 form and other required documentation

• Provide financial statements and proof of insurance

Step 7: Inspection & Approval

• State inspection to verify compliance with location and operational standards

Step 8: Maintain License

• Comply with license renewal requirements and maintain all business standards

Grow with Carprolive

After obtaining your dealer license, consider using Carprolive for all your automotive software needs. From managing your inventory and offering a professional dealership website to accessing a full print forms library and enabling e-signature capabilities, Carprolive is built to support new and growing dealerships every step of the way.

Disclaimer

Please note: The contents of this article are subject to change with any regulatory or legislative updates. This article does not constitute legal advice. Always verify the information with your state’s regulatory agency before proceeding.

Sources

• https://sos.state.co.us/pubs/autoIndustry/index.html

• https://www.bryantsuretybonds.com/blog/how-to-get-colorado-dealer-license

• https://www.suretybondsdirect.com/blog/colorado-dealership-license

• https://www.acvauctions.com/blog/how-to-get-a-dealer-license-in-colorado