Dealer and Wholesaler (Motor Vehicle & Powersports) - Auto Industry Division
Definitions for motor vehicle dealers, powersports dealers, and wholesalers can be found in C.R.S. 12-6-102 (13), (17), (17.5), & (18) or C.R.S. 12-6-502 (11), (19), & (20). These statutes can be found here.
Review the requirements below to determine if you Qualify for a Dealer/Wholesaler license:
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 Motor Vehicle/Powersports Dealer/Wholesaler license requires the following information:
- Application (DR 2109)
- License Fee
- Addendum for each owner, partner, member, or officer (DR 2109B)
- Pre-licensing Education Certificate
- Mastery Examination Affidavit (DR 2097)
- Surety Bond - submit a copy of the bond.
- Secure Verifiable Identification for all owners, partners, members or officers
- Affidavit – Restriction on Public Benefits for all owners, partners, members or officers (DR 4679)
- Statement of Financial Condition for the applicant and all owners (DR 2114)
- Certificate of Good Standing from the Colorado Secretary of State (if applicable)
- Constituent Filed Document (if applicable)
- Bylaws/Operating Agreement (if applicable)
- Trade Name (if applicable)
- Business Plan
- A copy of your lease (if applicable)
- Place of Business Affidavit (DR 2044)
- Photographs of Location
- Franchise Agreement (if applicable)
- Dealer Plate Affidavit (DR 2640)
- Sales Tax License
Please be advised that the Colorado Motor Vehicle Dealer Board (Board) is the State licensing authority for Dealer/Wholesaler licenses. The Board has statutory authority to issue or deny license applicants.
- Pre-Licensing Education Program Certificate is for any used motor vehicle dealer application or wholesale motor vehicle auction dealer application, or wholesaler application unless the applicant has held a motor vehicle dealer, used motor vehicle dealer, wholesaler motor vehicle auction dealer, wholesaler, powersports dealer or used powersports dealer license within the last 3 years.
- Mastery Exam — Per C.R.S. 12-6-113 - … 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. More information can be found here.
- All Owners selling via the Dealer license must pass the Mastery Exam and provide a copy of the Exam Affidavit, form DR 2097.
- Examination Affidavit — (DR 2097) must be filled out completely and signed by the applicant and examination administrator.
- 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 Dealer/Wholesaler
- $5,000 for small trailer dealers (weighing less than 2000 pounds)
- 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 2109B). More information can be found here.
- 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 2109B).
- Statement of Financial Condition (DR 2114) — 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, ie: 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: You may visit the Secretary of State‘s web site at www.sos.state.co.us for further information.
- 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:
- 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.
- Place of Business Affidavit (DR2044) — Boxes under New/Used/Auction Dealers must be completed by any dealer doing retail business. Residence phone number must be given under Wholesalers doing wholesale business. More information can be found here.
- Photographs of Location — All photographs shall be submitted on 8.5” x 11” single side sheets of paper.
- A photograph of the main entrance to the dealership.
- A photograph of the signage along the main street from both directions.
- A photograph of the entire building from the main street.
- Photograph of adequate sanitary facilities (bathroom).
- Any additional photographs you think would be helpful to the Motor Vehicle Dealer Board in determining the suitability of the dealership.
- 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.
- 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. All dealers must submit this, even wholesalers.
- 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.
- 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.