Business Disposal Dealers - Auto Industry Division

Business Disposal License statutes can be found in Senate Bill 19-249, accessible on line here:

Statutes in general related to the Motor Vehicle Dealer Board can be found by looking for Title 44, Article 20, Lexis Nexis.

Regulations in general related to the Motor Vehicle Dealer Board can be found here:

C.R.S. 44-20-108  - Definitions

C.R.S. 44-20-118 - Fingerprinting Requirement

44-20-118 (8)(a) with the submission of an application for any license issued under this part 1, each applicant shall submit a complete set of fingerprints to the Colorado Bureau of Investigation or the Auto industry Division for the purpose of conducting fingerprint-based criminal history record checks. The Colorado Bureau of Investigation shall forward the fingerprints to the Federal Bureau of Investigation for the purpose of conducting fingerprint-based criminal history record checks. The Board or the Executive Director shall use the information resulting from the fingerprint-based criminal history record check to investigate and determine whether an applicant is qualified to be licensed. The Board or the Executive Director may verify the information an applicant is required to submit. The applicant shall pay the costs associated with the fingerprint-based criminal history record check to the Colorado bureau of Investigation.

Review the requirements below to determine if you Qualify for a Business Disposal license:

  • The Board requires a net worth of at least $100,000.
  •  The Division will obtain a credit bureau report from Experian. This report is an indicator of an applicant’s financial fitness. The Dealer Board requires a Vantage score of at least 701 or higher for each applicant.
  • 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 to your application.

Background check: a background check will be done 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.

An application for a Business Disposal license requires the following information:

All documents submitted shall be on 8.5” x 11” size paper. Do not submit double sided copies. Do not staple. Do not submit Legal size copies.

Please be advised that the Colorado Motor Vehicle Dealer Board (Board) is the State licensing authority for Business Disposal licenses. The Board has statutory authority to issue or deny license applications.

  • Surety Bond with FULL LEGAL NAME and DBA must appear on the “principal line,” which needs to be signed by an owner or a partner, a corporate officer or LLC member. Bond amounts are as follows:
  • $50,000 for Business Disposal Dealers
  • Secure Verifiable Identification — A photocopy 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 2996).  For more information refer to the SVID Matrix form.
  • Verification of Fingerprints — Provide a receipt or confirmation from a 3rd party vendor OR two (2) fingerprint cards and the Verification of Fingerprints form (DR 2197). Visit the Verification of Fingerprints page of this website for specific requirements that must be met by all applicants. Fingerprints are not required for additional or renewal applications.
  • Affidavit — Restrictions on Public Benefits (DR 4679) - must be filled out by applicant (unless the applicant is a corporation or LLC) and all people who filled out an Addendum (DR 2996).
  • Business Disposal Statement of Financial Condition (DR 2997) — 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 2997. 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.
  • Business documents — If filing as a: Limited Liability Company/Limited Liability Partnership/Corporation:
  • 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.
  • Business Plan — all applicants must submit a business plan, including, but not limited to:
  • Staffing
  • Hours of operation
  • Overhead costs
  • Sales projections
  • Inventory acquisition
  • If your business plan is confidential you must provide a written statement permitting the Colorado Motor Vehicle Dealer Board  to review the business plan.
  • Sales Tax License - (CR0100AP Colorado Sales Tax Withholding Account Application) 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.
  • 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.

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.

For additional information contact the Auto Industry Division at (303) 205-5604 or e-mail your question to: