Dealer and Wholesaler (Motor Vehicle & Powersports) - Auto Industry Division

Motor Vehicle Dealers/Wholesalers License Types

Motor Vehicle Dealer

Regulation 44-20-102 (14) (18)- "Motor vehicle dealer" means a person who, for commission or with intent to  purchase, offers, or attempts to negotiate a sale, lease, or exchange of an interest in new or new and used motor vehicles or who is engaged wholly or in part in the business of selling or leasing new or new and used motor vehicles, whether or not the motor vehicles are owned by the person. The sale or lease of three or more new or new and used motor vehicles or the offering for sale or lease of more than three new or new and used motor vehicles at the same address or telephone number in any one calendar year is prima facie evidence that a person is engaged in the business of selling or leasing new or new and used motor vehicles. "Motor vehicle dealer" includes an owner of real property who allows more than three new or new and used motor vehicles to be offered for sale or lease on the property during one calendar year unless the property is leased to a licensed motor vehicle dealer. "Motor vehicle dealer" does not include: (a) Receivers, trustees, administrators, executors, guardians, or other persons appointed by or acting under the judgment or order of any court; (b) Public officers while performing their official duties; Auto Industry Division Motor Vehicle Statutes 9 (c) Employees of a motor vehicle dealer when engaged in the specific performance of their duties as employees; (d) A wholesaler or anyone selling motor vehicles solely to wholesalers; (e) Any person engaged in the selling of a fire truck; or (f) A motor vehicle auctioneer.

Used Motor Vehicle Dealer

Regulation 44-20-102 (26) "Used motor vehicle dealer" means a person who, for commission or with intent to make a profit or gain of money or other thing of value, sells, exchanges, leases, or offers an interest in used motor vehicles, or attempts to negotiate a sale, exchange, or lease of used motor vehicles, or who is engaged wholly or in part in the business of selling used motor vehicles, whether or not the motor vehicles are owned by the person. The sale of three or more used motor vehicles or the offering for sale of more than three used motor vehicles at the same address or telephone number in any one calendar year is prima facie evidence that a person is engaged in the business of selling used motor vehicles. "Used motor vehicle dealer" includes an owner of real property who allows more than three used motor vehicles to be offered for sale on the property during one calendar year unless the property is leased to a licensed used motor vehicle dealer. "Used motor vehicle dealer" does not include: Auto Industry Division Motor Vehicle Statutes 13 (a) Receivers, trustees, administrators, executors, guardians, or other persons appointed by or acting under the judgment or order of any court; (b) Public officers while performing their official duties; (c) Employees of a used motor vehicle dealer when engaged in the specific performance of their duties as employees; (d) A wholesaler or anyone selling motor vehicles solely to wholesalers; (e) Mortgagees or secured parties as to sales in any one year of not more than twelve motor vehicles constituting collateral on a mortgage or security agreement, if the mortgagees or secured parties do not realize for their own account any money in excess of the outstanding balance secured by the mortgage or security agreement, plus costs of collection; (f) A person who only sells or exchanges no more than four motor vehicles that are collector's items under part 3 or 4 of article 12 of title 42; (g) A motor vehicle auctioneer; or (h) An operator, as defined in section 42-4-2102 (5), who sells a motor vehicle pursuant to section 42-4-2104. Regulation 44-20-102(26) See Regulation 44-20-102(18).  

 

Wholesaler

Regulation 44-20-102 (28) "Wholesaler" means a person who, for commission or with intent to make a profit or gain of money or other thing of value, sells, exchanges, or offers or attempts to negotiate a sale, lease, or exchange of an interest in new or new and used motor vehicles solely to motor vehicle dealers or used motor vehicle dealers.

Wholesale Motor Vehicle Auction Dealer

Regulation 44-20-102 (27) "Wholesale motor vehicle auction dealer" means a person or firm that provides auction services in wholesale transactions in which the purchasers are motor vehicle dealers licensed by this state or any other jurisdiction or in consumer transactions of government vehicles at a time and place that does not conflict with a wholesale motor vehicle auction conducted by that licensee. 

Powersports Dealers/Wholesalers License Types

Powersports Vehicle Dealer

C.R.S. 44-20-402 (12) -"Powersports vehicle dealer" means a person who, for commission or with intent to make a profit or gain of money or other thing of value, sells, leases, exchanges, rents with option to purchase, offers, or attempts to negotiate a sale, lease, or exchange of an interest in new or new and used powersports vehicles or who is engaged wholly or in part in the business of selling or leasing new or new and used powersports vehicles, whether or not the powersports vehicles are owned by the person. The sale or lease of ten or more new or new and used powersports vehicles or the offering for sale or lease of more than ten new or new and used powersports vehicles at the same address or telephone number in any one calendar year shall be prima facie evidence that a person is engaged in the business of selling or leasing new or new and used powersports vehicles. "Powersports vehicle dealer" includes an owner of real property who allows more than ten new or new and used powersports vehicles to be offered for sale or lease on the property during one calendar year unless the property is leased to a licensed powersports vehicle dealer. "Powersports vehicle dealer" does not include: (a) Receivers, trustees, administrators, executors, guardians, or other persons appointed by or acting under the judgment or order of any court; (b) Public officers while performing their official duties; (c) Employees of persons enumerated in the definition of "powersports vehicle dealer" when engaged in the specific performance of their duties as employees; (d) A wholesaler or anyone selling powersports vehicles solely to wholesalers; or (e) A wholesale motor vehicle auctioneer.

Used Powersports Vehicle Dealer

C.R.S. 44-20-402 (20) -"Used powersports vehicle dealer" means any person who, for commission or with intent to make a profit or gain of money or other thing of value, sells, exchanges, leases, or offers an interest in used powersports vehicles, or attempts to negotiate a sale or lease of new and used powersports vehicles or who is engaged wholly or in part in the business of selling used powersports vehicles, whether or not the used powersports vehicles are owned by the person. The sale of ten or more used powersports vehicles or the offering for sale of more than ten used powersports vehicles at the same address or telephone number in any one calendar year shall be prima facie evidence that a person is engaged in the business of selling used powersports vehicles. "Used powersports vehicle dealer" includes an owner of real property who allows more than ten used powersports vehicles to be offered for sale on the property during one calendar year unless the property is leased to a licensed used powersports vehicle dealer. "Used powersports vehicle dealer" does not include: (a) Receivers, trustees, administrators, executors, guardians, or other persons appointed by or acting under the judgment or order of any court; (b) Public officers while performing their official duties; (c) Employees of used powersports vehicle dealers when engaged in the specific performance of their duties; (d) Anyone selling powersports vehicles solely to wholesalers; (e) Mortgagees or secured parties as to powersports vehicles constituting collateral on a mortgage or security agreement, if the mortgagees or secured parties shall not realize for their own account from the sales any money in excess of the outstanding balance secured by the mortgage or security agreement, plus costs of collection; or (f) A motor vehicle auctioneer.

Wholesaler

C.R.S. 44-20-402 (21) "Wholesaler" means a person who, for commission or with intent to make a profit or gain of money or other thing of value, sells, exchanges, or offers or attempts to negotiate a sale, lease, or exchange of an interest in a new or new and used powersports vehicle solely to powersports vehicle dealers or used powersports vehicle dealers.

Licensing Authority

The Colorado Motor Vehicle Dealer Board is the State licensing authority for Dealer/Wholesaler licenses.

The Board has statutory authority to issue or deny license applications.

How to Apply

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Dealer/Wholesaler License Application Checklist

 

1.  New Worth Requirement

Applicant(s) must have a net worth of at least $100,000.

2. Vantage score of at least 701 or higher for each applicant
  • The Dealer Board requires a Vantage score of at least 701 or higher for each applicant.

  • The Division will obtain a credit bureau report from Experian. This report is an indicator of an applicant’s financial fitness.

  • It is suggested that if you are not sure of your score that you contact Experian to run your own credit report. If derogatory information appears, it must be resolved or explained in an attachment with your application.

3. Background Check

A background check will be processed on every applicant. If the applicant has ever been convicted of or pled no contest to any felony or misdemeanor crime, supporting court documents must be included with the application.

4. Dealer/Wholesaler Checklist

Dealer/Wholesaler Checklist (DR 2248). This form is provided to assist you with the application process.

5. Dealer/Wholesaler License Application
  • No person may hold both a wholesaler license and a motor vehicle salesperson license at the same time.

  • A wholesaler may not employ a motor vehicle salesperson.

  • Complete and submit a Dealer/Wholesale License Application (DR 2109). Incomplete applications may delay processing.

6. Dealer/Wholesaler License Application Addendum
  • Complete and submit  an addendum (DR 2109B) for each owner, partner, member, or officer.

  • Each owner, partner, LLC/LLP member, stockholder (5% or more), director or officer must complete an Addendum AND provide their signature on the "signature" line of this form.

7. Pre-licensing Education Certificate

Pre-Licensing Education Program Certificate is required for any Used Motor Vehicle dealer application or Wholesale Motor Vehicle Auction dealer application, or Wholesaler application.

If the applicant has held one of the following licenses listed below within the last 3 years, the certificate is not required:

  • Motor Vehicle Dealer

  • Used Motor Vehicle Dealer

  • Wholesaler Motor Vehicle Auction Dealer

  • Wholesaler

  • Powersports Dealer

  • Used Powersports Dealer

Go to the Pre-Licensing Education Program Certificate page and read the requirements that must be met by ALL applicants.

8. Mastery Exam 

Mastery Exam — Per C.R.S. 44-20-116 … If the applicant is a corporation, the managing officer shall take such examination, and, if the applicant is a partnership, all the general partners shall take such examination. No license shall be issued except upon successful passing of the examination. Go to the Mastery Exam page and read the requirements that must be met.

  • All Owners selling via the Dealer license must pass the Mastery Exam and provide a copy of the Examination Affidavit (DR 2097) form. Submit a completed form signed by the applicant and the examination administrator.

9. Verification of Fingerprints 
  • Go to the Verification of Fingerprints page and read the requirements that must be met.

  • DO NOT provide Verification of Fingerprints (DR 2197) form UNLESS YOU ARE REQUIRED TO DO SO.  TO Determine IF YOU NEED TO SUBMIT THIS FORM, go to the Verification of Fingerprints page and read the requirements. 

  • If you do not follow directions, your application may be rejected.

10. Surety Bond
  • Submit a photocopy or scanned document copy of the bond.

  • Bond must show FULL LEGAL NAME and DBA must appear on the “principal line.”

  • Bond amount must be: $50,000

  • Bond must be signed by an owner or a partner, a corporate officer or LLC member.

  • Small trailer dealers weighing less than 2000 pounds – Bond amount must be: $5,000

  • Example of a Bond.

11. Secure Verifiable Identification – Proof of Lawful Presence
  • All Auto Industry applications and forms require that a licensee use their FULL LEGAL name as shown on the applicants Driver License or Identification Card or proof of lawful presence document.

  • Provide SVID for All owners, partners, members or officers.

  • Submit a photocopy or a scanned copy of an appropriate identification such as a Colorado Driver License for the applicant (unless the applicant is a corporation or LLC) AND all people who filled out an Addendum (DR 2109B).

  • Examples of Proof of lawful presence documents are listed on the SVID Matrix form.

  • HB06S-1023 - EVIDENCE OF LAWFUL PRESENCE - All Dealers, Salespeople and Wholesalers must attach a copy of their verifiable ID to their application. Verifiable ID is required for original and renewal applications. You may learn more about this requirement by viewing the Verifiable ID Requirement link for Rules of Evidence of Lawful Presence - 1 CCR 201-17 located on the Secretary of State Office website.

12. Affidavit – Restriction on Public Benefits 
  • All Auto Industry applications and forms require that a licensee use their FULL LEGAL name as shown on the applicants Driver’s License or Identification Card.

  • Each owner, partner, members or officers who filled out an Addendum form - DR 2109B must submit a copy of their SVID.

  • Affidavit - Restrictions on Public Benefits (DR 4679) form must be completed by each applicant (unless the applicant is a corporation or LLC).

13. Statement of Financial Condition for the applicant and all owners
  • A financial statement is required for the applicant and each owner, member, or partner. If filing as a corporation or LLC a financial statement is also required. We must know how the corporation or LLC will be funded. All financial statements must be completed on the DR 2114. No other financial statement forms will be acceptable. Please do not mix your personal assets and liabilities with the corporation or LLC. The corporation or LLC must have its own assets/liabilities.

  • NOTE: All assets other than cash must have an independent valuation of their worth, such as "Average Trade-In" NADA value for a vehicle.

  • When using “cash in banks,” please provide at least 12 months of bank statements as verification of the dollar amount that is being entered on the form. Attach copies of the entire statement. (Be aware that more than 12 months may be requested as part of the background investigation).

  • When using marketable securities, please provide a statement verifying the dollar amount that is being entered on the form. Please provide the entire statement. Additionally, attach documentation regarding the cash out value.

  • When using real estate, we must have the complete address of the property and proof of ownership, such as the property tax statement. A copy of the mortgage balance must accompany the application, as well as the valuation of said property, i.e. County Assessors report.

  • When using motor vehicles, please submit a copy of title and/or lien statement that appears in the name(s) of the applicant. Please include a valuation for the motor vehicles, such as: NADA, Kelly Blue Book, etc. that establishes the average trade-in value.

  • All statements must include applicant’s name/identifying information.

14. Business Documents

If filing as a Limited Liability Company/Limited Liability Partnership/Corporation you must also submit the documents listed in this section.

  • Certificate of Good Standing from the Colorado Secretary of State.

  • Constituent Filed Document -  The Articles of Incorporation (corporation, nonprofit corporation, cooperative or cooperative association), Articles of Association (limited partnership association), Articles of Organization (limited liability company), Certificate of Limited Partnership (limited partnership) or Statement of Registration (limited liability partnership or limited liability limited partnership). NOTE: For further information, you may visit the Secretary of State website.

  • Bylaws - Bylaws of the Corporation, operating agreement for a limited liability company, or the partnership agreement for any partnership.

  • Trade Name

    • If doing business in a name other than the corporate name, attach a copy of the Certificate of Assumed or Trade Name. 

    • If foreign corporation, submit a copy of Certificate of Authority to do business in Colorado.

15. Business Plan

All applicants must submit a business plan, including, but not limited to:

  • Staffing

  • Hours of operation

  • Overhead costs

  • Sales projections

  • Inventory acquisition

  • Floor-planning”/financing/lines of credit

If your business plan is confidential you must provide a written statement permitting the Colorado Motor Vehicle Dealer Board  to review the business plan.

16. Lease

If applicable, submit a copy of your lease.

17. Place of Business Affidavit 
  • Go to the Place of Business Requirements page and read the requirements that must be met by all applicants.

  • Complete the Place of Business Affidavit (DR 2044) form.

  • Complete all boxes under New/Used/Auction Dealers.

  • These boxes must be completed by any dealer doing retail business. 

  • Residence phone number must be given under Wholesalers doing wholesale business.

18. Franchise Agreement 
  • If applying as a franchised dealer please ensure that the manufacturer is licensed to do business in Colorado. You may ask them for a copy of their license or contact the Division for that information. 

  • If the manufacturer is licensed you must provide a letter of intent followed by the final franchise/dealer agreement with your application. The agreement must state the type of vehicles and makes you are authorized to sell.

19. Dealer Plate Affidavit  

Complete and submit the Dealer Plate Affidavit (DR 2640) form. Fill out all fields and sign document.

20. Sales Tax License 
  • Dealers AND Wholesalers must complete the Colorado Sales Tax Withholding Account Application (CR 0100AP) form.

  • A Colorado Sales Tax account number or a copy of the sales tax license must be provided as well as proof of trade name registration.

21. Wholesalers
  • No person may hold both a wholesaler license and a motor vehicle salesperson license at the same time. 

  • A wholesaler may not employ a motor vehicle salesperson.

22. UCC Retail Business Requirements

Companies that extend consumer credit in Colorado should be aware of amendments to the Colorado UCCC due to the passage of Colorado House Bill 09-1141. As of January 1, 2010 retail sales companies are required to file notification even if the contracts are sold or assigned within thirty days of the contract date. However, they are no longer required to pay volume fees. In addition, retail sales companies may be subject to periodic compliance examinations pursuant to Section 5-6-203, C.R.S.
To obtain forms or obtain more information go to the Attorney General’s office website

23. Written Correspondence 
  • If you have anything you wish the Motor Vehicle Dealer Board to take into account or need to explain any licensing character, criminal character, or financial character issues please provide it with the application. Failure to disclose any licensing character, criminal character, or financial character issues in writing with the application is considered a material misstatement and may result in your license being denied. When in doubt provide an explanation.

  • NOTE: During the background investigation, additional information may be requested/required. If you would like to authorize the Background Investigator to discuss your application with anyone other than yourself, or other co-applicants, please provide a signed authorization with your application packet.

  • You cannot hold a license issued by the Colorado Motor Vehicle Dealer Board if you have been convicted of a felony within the last 10 years of an Article 3, 4, or 5 of Title 18 of the Colorado Revised Statutes or any crime involving odometer, salvage, motor vehicle title fraud, or the defrauding of a retail consumer in a motor vehicle sale or lease transaction.(See C.R.S. 44-20-121(8)(a) and C.R.S. 44-420(8)(a).

  • Article 3 of Title 18 includes, but is not limited to crimes against persons such as murder, assault, kidnapping, sexual assault, custody violation, menacing weapon, vehicular homicide, manslaughter, criminal extortion and enticing a child.

  • Article 4 of Title 18 includes, but is not limited to crimes against property, arson, theft, burglary, robbery, criminal mischief over $500, criminal trespass in the 1st degree and unlawful transfer for sale (copyright infringement).

  • Article 5 of Title 18 includes, but is not limited to fraud, forgery, criminal possession of a forged instrument or forging instrument, criminal impersonation, fraud by check (over $500), commercial bribery, bribery in sports and equity skimming.

  • MATERIAL MISSTATEMENTS - Any license issued by the Colorado Motor Vehicle Dealer Board may be denied, suspended, or revoked if a material misstatement is made in an application for a license. A “Material Misstatement” means any false or misleading statement, omission, or misrepresentation regarding personal identification information, employment history, prior occupational licensing history, criminal background and history, including filings, indictments, municipal, misdemeanor, and/or felony convictions and deferred judgments.

24. Additional Requirements

All documents submitted must be on 8.5” x 11” size paper. Do not submit legal size copies.

  • Do not submit double sided copies.

  • Do not staple documents.

25. Incomplete Applications
  • All of the information provided on this web page is provided to assist you in ensuring that your application is not missing any required documentation.

  • The Auto Industry Division strongly recommends that you use this information to aid you in completing the application.

  • Any fields that are not complete may result in your application being rejected and may delay processing.

26. Pay Fee(s)

Check should be made payable to the Department of Revenue. All fees are subject to change July 1st of every year. See button labeled $ Fees

Dealer/Wholesaler License Apply Online

Initial Online Application

The Auto Industry Division  is now accepting Dealer and Wholesaler (Motor Vehicle & Powersports) initial applications online by clicking here.

Training

The Auto Industry Division  has created a training video that is available here

 

Adobe Acrobat Reader

  • To view or print any of the forms listed on this page, you will need a free copy of Adobe Acrobat Reader.

  • You can download a copy from the Auto Industry home page - Quick Links

For additional information contact the Auto Industry Division at (303) 205-5604 or e-mail your question to: dor_dealers@state.co.us