Colorado Auto Dealer Bonds
Auto dealer bonds protect consumers and the state. The bond amount and license type required depend on your state's DMV.
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At a glance
Colorado Auto Dealer Bond Key Facts
Governed by C.R.S. § 42-6-115.
The basics
What Is an Auto Dealer Bond in Colorado?
A bonded title in Colorado is a regular Colorado certificate of title the DMV files for you once you post a surety bond, because you cannot give the DMV a properly transferred title or other satisfactory proof of ownership. Under C.R.S. 42-6-115 the bond must be at least twice the vehicle's reasonable value. Colorado calls this “bonding for title.”
Good to know - There is no minimum vehicle value that triggers the bond — the surety bond is the standard path when ownership evidence is missing. Exception: a vehicle 25 years or older with a certified VIN inspection and a bill of sale presented within 24 months of the sale does not need a surety bond (in lieu of bond).
The bond protects the State of Colorado and anyone who later proves they had a claim on the vehicle — a prior owner or a lienholder — if your ownership turns out to be disputed. You file the bond together with your title application; it does not replace the application.
You do not post the bond by itself. First you ask the DMV to search the title record, try to reach any prior owner or lienholder, get the vehicle’s VIN inspected, and have its value set. Then you buy the bond and file everything at your county motor vehicle office.
If your vehicle is 25 years old or older, you may not need a bond at all. With a certified VIN inspection and a bill of sale presented within 24 months of the sale, you can title it “in lieu of bond” by signing a sworn affidavit instead.
Qualification
What You Need to Qualify for a Colorado Auto Dealer Bond
Approval depends on your dealer license type, required coverage amount, and underwriting factors such as credit.
- You have possession of the vehicle and it is physically located in Colorado.
- You cannot provide a properly transferred Colorado title or other evidence of ownership the DMV will accept.
- A certified VIN inspection has been completed on the vehicle by a P.O.S.T.-certified inspector or Colorado law enforcement officer.
- You have requested a Colorado title record search (DR 2489A) and tried to contact any prior owner or lienholder it identifies.
- The bond is issued by a corporate surety and runs to the State of Colorado for at least twice the vehicle’s reasonable value.
Step by step
How to Get an Auto Dealer Bond in Colorado: Step by Step
Request a Colorado title record search
Ask the DMV for a formal title record search using form DR 2489A. The search identifies the last known owner and any lienholders. All pages of the DR 2489A must be completed and returned.
Requesting Colorado Motor Vehicle Title Record (DR 2489A)Notify any prior owner or lienholder
If the record search finds a previous owner or a lienholder, contact them by certified mail so they have a chance to claim the vehicle or release their lien before you bond it.
Get a certified VIN inspection
Have the vehicle’s VIN inspected and a Certified VIN Inspection (DR 2704) completed by a P.O.S.T.-certified inspector or a Colorado law enforcement officer. Your county motor vehicle office can refer you to an inspector.
Certified VIN Inspection (DR 2704)Establish the vehicle’s value and buy the bond
Set the vehicle's reasonable value (current Kelley Blue Book or N.A.D.A. guide for vehicles under 7 years old, minimum $200; a Colorado licensed dealer's signed appraisal for older vehicles), then buy a surety bond for at least twice that value. Enter your vehicle value in the calculator above to estimate your premium.
Title or Salvage Title Established by Surety Bond (DR 2922)File everything at your county motor vehicle office
Submit the surety bond, the VIN inspection report, your title record search results, the Application for Title and/or Registration (DR 2395), and the other required forms to your county motor vehicle office. The county forwards the package to the state for review.
Application for Title and/or Registration (DR 2395)Paperwork
Colorado Dealer Bond Forms & Documents
The bonding application/surety bond filed to establish ownership.
View formStep-by-step checklist for the bonding-for-title process.
View formTitle record search that finds prior owners and lienholders.
View formMain Colorado title and registration application.
View formCompleted by a P.O.S.T.-certified inspector; provided by the inspector, not online.
Used for the no-bond path for vehicles 25 years or older.
View formYou'll also need
Cost
How Colorado Auto Dealer Bond Pricing Works
You do not pay the full bond amount. In Colorado the bond must be at least twice the vehicle’s reasonable value. You pay a premium, which is a smaller percentage of that bond amount.
Your final price depends on the bond amount and underwriting. Use the calculator above for an estimate; the final premium may vary.
Worked example
If your vehicle’s reasonable value is $4,000, the bond amount is $8,000 (2x). You pay only the premium, not the full $8,000.
Filing
Filing Information
Colorado Department of Revenue, Division of Motor Vehicles (DMV); the bond runs to the State of Colorado
We prepare the issued bond and send you a copy for your records. Filing requirements vary by state, license type, carrier, and bond form.
303-205-5607FAQ
Colorado Auto Dealer Bond FAQ
Yes. Under C.R.S. 42-6-115, when you cannot provide a properly transferred title or other satisfactory proof of ownership, the Colorado DMV can file a title once you post a surety bond. Colorado calls this “bonding for title.”
The bond amount must be at least twice (2x) the vehicle’s reasonable value. You pay a premium — a percentage of that amount — not the full bond. Use the calculator above to estimate it.
For vehicles under 7 years old, by the current Kelley Blue Book or N.A.D.A. Official Used Car Guide, with a $200 minimum. For older vehicles, by a signed, dated appraisal from a Colorado licensed motor vehicle dealer that lists the dealer’s license number.
You may not need a bond. With a certified VIN inspection and a bill of sale presented within 24 months of the sale, you can title the vehicle “in lieu of bond” by signing a sworn affidavit (see checklist DR 2462).
At your county motor vehicle office. Submit the surety bond, the VIN inspection report, the title record search results, and the Application for Title and/or Registration (DR 2395). The county forwards the package to the state for review.
C.R.S. 42-6-115 sets the bond amount but does not state a fixed term. Confirm how long your bond must stay in effect with the Colorado DMV or your county motor vehicle office before you buy it.
Sources
Last verified 2026-06-23. Requirements change - confirm current details with Colorado Department of Revenue, Division of Motor Vehicles (DMV); the bond runs to the State of Colorado before you file. This page is informational and not legal advice.
FAQ
Colorado Auto Dealer Bond Questions
The cost of a Colorado auto dealer bond is usually a small percentage of the state-required bond amount. Your exact premium depends on the bond amount, license type, business details, and underwriting factors such as credit.
Many auto dealer bonds can be issued the same day after you complete the application. Larger bond amounts or applications that need underwriting review may take longer.
Requirements vary by license type, but most Colorado auto dealers need to complete a short application and purchase the bond amount required by the state before their license can be issued or renewed.
Often, yes. Many states have separate bond requirements for wholesale, retail, broker, or other dealer license types. Choose the bond that matches your Colorado license instructions.
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AutoDealersBond.com is operated by Insurance Services by Shield, a California and Texas licensed insurance agency (CA License #6018195, TX License #3446536). Insurance Services by Shield is not an insurance carrier and does not underwrite bonds or insurance policies. Bond and coverage availability, pricing, and issuance are subject to carrier underwriting approval, eligibility, applicable state requirements, and policy or bond terms. Availability varies by state.
