| Q. |
What is a grace period? |
| A. |
Dealers whose license expiration date has expired are granted an additional 30 day grace period in which to renew their license. A grace period is additional time that is granted as a courtesy to an applicant so that they may have time to renew their license. This grace period begins the 1st day after the license expiration date. A late fee will be assessed. See the Fee Schedule.
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| Q. |
What if my license has expired and so has the grace period? |
| A. |
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 Licensing page for more details on how to apply for license. Note that you will be required to follow all of the requirements listed (this includes financials, bond, mastery exam, pre-licensing certificate etc.) and will be assigned a new dealer number.
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| Q. |
How do I ensure that I am authorized to have Dealer Plates? |
| A. |
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.
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| Q. |
Do I need to provide verifiable ID? |
| A. |
Yes, verifiable ID is generally required for original & renewal applications. EXEMPT entities are Corporations, LLC or LLP.
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| Q. |
Do I need an Off-Premise Permit to sell away from my primary or additional location? |
| A. |
Yes, regulation 12-6-102 (16) (1) 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."
Note that no off-premise sale shall exceed six days; and specific sales are exempt of this rule. Refer to the Laws & Regulations page for the Motor Vehicle or Powersports Laws and Regulations.
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| Q. |
Do I need to attend a Pre-licensing Class if I am an existing Motor Vehicle Dealer? |
| A. |
No, refer to: C.R.S. § 12-6-115, (7) (a) 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 5 of this article." This new requirement pertains to applications submitted on or after September 4, 2008.
See Pre-Licensing Education Program page.
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| Q. |
Do I need to attend a Pre-licensing Class if I am applying as a Powersports Dealer? |
| A. |
Yes, if you are not an existing motor vehicle dealer, refer to: C.R.S. § 12-6-115, (7) (a) 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 5 of this article." This new requirement pertains to applications submitted on or after September 4, 2008.
See Pre-Licensing Education Program page
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| Q. |
Does my General Manager or Finance Manager need to be licensed? |
| A. |
Yes, if they will be participating in negotiations of any kind they would have to be licensed.
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| Q. |
I recently moved my Dealership, do I need to notify the Auto Industry Division of this change? |
| A. |
Yes, per C.R.S. 12-6-116 "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 12-6-110. "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.
See Laws & Regulations page.
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| Q. |
I'm closing my Dealership, do I need to notify the Auto Industry Division of this change? |
| A. |
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.
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| Q. |
I forgot to mention on my license application that I was recently arrested, what should I do? |
| A. |
Excluding traffic violations, you are required to notify the Auto Industry Division immediately and within 30 days after receiving a conviction. A license can be denied for failure to disclose your criminal history and failure to provide court documents. Failure to disclose your criminal history is considered a material misstatement in an application for a license (12-6-118 C.R.S.) and could be grounds for denial of a Dealers license.
See Laws & Regulations page.
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| Q. |
I was recently arrested but the charges were dismissed, do I need to notify the Auto Industry Division of this event? |
| A. |
Yes, you are required to notify the Auto Industry Division right away 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 (12-6-118 C.R.S.) and could be grounds for denial of a Dealers license.
See Laws & Regulations page.
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| Q. |
Does the Auto Industry Division have a listing of bond providers? |
| A. |
No, the Auto Industry Division does not have a list and does not make recommendations of this nature. AID recommends that you contact your insurance agent. You may also look in the Yellow Pages under "Surety Bonds."
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| Q. |
I've changed my entity type (business type) do I need to notify the Auto Industry Division of this change? |
| A. |
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 subject to meet the current Dealer Board requirements for financial fitness and background. Refer to regulation 12-6-104 (3) (g) in the Laws and Regulations manuals located on the Laws & Regulations page. Read more about entity changes on line in the September 2008 Wheels Newsletter.
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