Dealer and Wholesaler (Motor Vehicle & Powersports)
Other License Transactions
Frequently Asked Dealer and Wholesaler Questions
- Do I need to attend a Pre-licensing Class if I am an existing Motor Vehicle Dealer?
No, refer to C.R.S. § 44-20-118 (7)(a) which states that "a person applying for a used motor vehicle dealer's license, a wholesale motor vehicle auction dealer's license or a wholesaler's license shall file with the board a certification that the applicant has met the educational requirements for licensure under this subsection (7). This subsection (7) shall not apply to a person who has held a license, within the last three years, as a motor vehicle dealer, used motor vehicle dealer, wholesaler, wholesale motor vehicle auction dealer, powersports vehicle dealer, or used powersports vehicle dealer under part 1 or part 4 of this article."
See Pre-Licensing Education Program page.
- Do I need to attend a Pre-licensing Class if I am applying as a Powersports Dealer?
Yes, if you are not an existing motor vehicle dealer, refer to C.R.S. § 44-20-118 (7)(a) which states that "a person applying for a used powersports dealer's license shall file with the board a certification that the applicant has met the educational requirements for licensure under this subsection (7), unless the applicant is licensed as a motor vehicle dealer or a used motor vehicle dealer. This subsection (7) shall not apply to a person who has held a license, within the last three years, as a motor vehicle dealer, used motor vehicle dealer, wholesaler, wholesale motor vehicle auction dealer, powersports vehicle dealer, or used powersports vehicle dealer under part 1 or part 4 of this article."
- I'm closing my Dealership, do I need to notify the Auto Industry Division of this change?
Yes, if a dealer or wholesaler through either a voluntary or involuntary action, ceases to be a motor vehicle dealer or wholesaler, they must notify the Auto Industry Division immediately regarding this change.
- How do I ensure that I am authorized to have Dealer Plates?
When your dealer or wholesaler license is issued, the demo plates and full-use plate authorization will be computer printed on the lower right-hand corner of the license. You will be required to show a copy of your license when submitting your plate renewal request to the County Clerk.
All dealers are authorized to purchase demonstrator plates. In order to purchase dealer full-use plates the dealer must show that they have a starting inventory of more than 50 vehicles, they have sold more than 25 vehicles in the previous 12 months, or they are purchasing a dealership which sold more than 25 vehicles in the previous 12 months.
- I recently moved my Dealership, do I need to notify the Auto Industry Division of this change?
Yes, refer to C.R.S. 44-20-119 which states "Should the motor vehicle dealer or used motor vehicle dealer change the site or location of such dealer's principal place of business, such dealer shall immediately upon making such change so notify the board in writing, and thereupon a new license shall be granted for the unexpired portion of the term of such license at a fee established pursuant to section 44-20-111." If a dealer abandons its licensed locations for more than 30 days, the licensee is required to file a new application to renew the license. You must submit a DR 2003 - Application for Change of Location and the appropriate fee.
- I've changed my entity type (business type) do I need to notify the Auto Industry Division of this change?
Yes, whenever a change of entity occurs, a new application must be completed with all the required forms, financial information and fee. A new bond is also required for the new entity. The new application is required to meet the current Dealer Board guidelines for financial fitness and credit score in addition to any licensing character, criminal character, and financial character requirements. Refer to regulation 44-20-104 (3) (g).
- Do I need an Off-Premise Permit to sell away from my primary or additional location?
Yes, regulation 44-20-102 (22) states "A motor vehicle dealer or used motor vehicle dealer shall obtain an off-premise permit to offer, display, and sell motor vehicles away from the dealer's place of business. A request for an Off-Premise permit shall be made in writing prior to the event and shall list the location and the date(s) of the sale. The permit shall be posted for inspection at the sale."
Frequently Asked Off Premise Permit Questions
- Can a Dealer get a Monday through Saturday permit this week and another one for Monday through Saturday next week?
No, that would be consecutive permits, even though Sunday breaks the two events.
- Can a Dealer purchase only one permit to cover a Wednesday through Tuesday show?
Yes. In this case, the permit is within the six-day limit, so it can be approved, but the Dealer can only display the vehicles on Sunday – NO SELLING.
- Are the requirements different for “Out of State” Dealers who want to sell motor vehicles in Colorado at one of the upcoming Colorado events?
Out of State Motor Vehicle Dealers should see Regulation 44-20-109 (2) for out of state requirements. Powersports Dealers should see Regulation 44-20-409 (2).
- Manufacturers - Can I sell or display my manufactured motor vehicles in Colorado at one of the upcoming Colorado events?
Yes, if you are currently licensed as a Colorado Manufacturer and have an existing franchise agreement with a Colorado franchised Dealer. The Dealer must obtain the Off Premise Permit.
Frequently Asked License Questions
- When does my license expire?
All licenses expire on the date printed on the license next to "expires," except in cases, where a license is denied, revoked or suspended. In these cases the Colorado Motor Vehicle Dealer Board order will clearly state when the license is not valid. Performing any activity which requires a license when that license is expired, denied, revoked, or suspended is a violation, and can result in disciplinary action and/or criminal charges.
If you have any questions as to whether you have a valid license and/or when it will expire please contact the Division at (303) 205-5604.
- What is a grace period?
A grace period is the period of time that a license holder may renew their license rather than reapply for their license. C.R.S. 44-20-111(4)(d) allows for a 30 day grace period.
- What if my license has expired and so has the grace period?
If your license has expired and so has the grace period, you will need to re-apply. This requires a new application and bond. See the respective licensing page for more details on how to apply for license. Note that you will be required to follow all of the requirements listed.
- Will I be charged a late fee if my license expires?
As soon as a license expires, a late fee will be assessed at the time of renewal, if you renew within the 30 day grace period. For the late fee amount, please see the Fee Schedule.
- If I am renewing my license do I need to take the mastery exam?
If you are renewing your license you do not need to re-take the mastery exam. If your license expired more than a year ago, you will need to take the exam.
- Does my General Manager or Finance Manager need to be licensed?
Yes, if they will be participating in negotiations or involved in any other activity which can be construed as sales related activity of any kind they would need to be licensed.
- I forgot to mention on my license application that I was recently arrested, what should I do?
If you did not disclose an arrest of conviction on your salesperson application, you should immediately contact the Auto Industry Division Background Investigation Team at (303) 205-5604 and provide all related arrest documents. Failure to disclose your criminal history (or recent arrests) is considered a material misstatement in an application for a license (44-20-121 C.R.S.) and could be grounds for denial of a Sales license.
- Does the Auto Industry Division have a listing of bond providers?
No, the Auto Industry Division does not have a list and does not make recommendations of this nature. Bond providers can be located online or in the Yellow Pages under "Surety Bonds."
- Do I need to provide verifiable ID?
All natural persons receiving a benefit from the State of Colorado must provide secure and verifiable identification and an affidavit on restrictions of public benefits. This would mean salespeople, the principals involved in a dealership or manufacturer, etc., would need to provide this information upon application for a license and at renewal.
- How long will it take to conduct the background investigation on my license?
The Colorado Department of Revenue Auto Industry Division conducts approximately 4,500 background investigations per year. The Background Investigation Team is tasked with performing a complete and thorough investigation into an applicant’s licensing, criminal, and financial character. In many cases this can be accomplished in 30-60 days; however, there are circumstances where it can take significantly longer. In such cases the background investigator will keep the applicant informed as to their specific circumstances.
- Which convictions do I need to disclose to the Colorado Motor Vehicle Dealer Board on my application?
The Colorado Motor Vehicle Dealer Board currently requires the disclosure of ALL felony convictions and ALL misdemeanor convictions within the past 10 years. Please be aware that there are many things people believe are minor traffic violations which are in fact misdemeanors. Driving Under the Influence (DUI), No Proof of Insurance, Careless Driving, Reckless Diving, Leaving the Scene of an Accident, and Driving Under Restraint are just a few examples. If you served time in jail or were placed on probation as a part of the conviction there is a high probability that it was a misdemeanor and needs to be disclosed. If you have any questions as to whether something in your driving history is a misdemeanor or not disclose it anyway.
- I think it’s been over 10 years since my conviction what should I do?
The Colorado Motor Vehicle Dealer Board currently requires the disclosure of ALL misdemeanor convictions within the past 10 years in addition to ALL felony convictions regardless of how long ago it occurred. You can obtain a copy of your Colorado Criminal History from the CBI; however, this information only lists offenses where fingerprints were taken. If you were issued a summons and then released, such as with most traffic misdemeanors, it will not appear on the CBI report. Most other states offer a similar service if you have lived in a state other than Colorado. The FBI can provide you with a criminal history as well but it will only list offenses where fingerprints were taken. Your driving record is available from the Colorado Department of Revenue Driver License Office. There are many 3rd party companies that can provide this information for a fee. The bottom line is that an applicant should know what they have been convicted of and should properly disclose that information to the Colorado Motor Vehicle Dealer Board. It is always better to disclose something you didn’t need to because not disclosing something you should have usually ends with the denial of a license.
- Everything I was convicted of over 10 years ago doesn’t matter right?
The Colorado Motor Vehicle Dealer Board requires the disclosure of ALL felonies, no matter how long ago they occurred. Just because a conviction isn’t required to be disclosed to the Colorado Motor Vehicle Dealer Board doesn’t mean that it isn’t important. The Background Investigation Team reports to the Colorado Motor Vehicle Dealer Board all of an applicant’s criminal convictions, not just those from the past 10 years. An applicant’s pattern of convictions can be used as a basis for denial even when some of those convictions are over 10 years old and/or were not required to be disclosed to the Colorado Motor Vehicle Dealer Board.