How to Get a Dealer License in Colorado: Cost & Requirements

Last updated: October 2, 2026

Colorado is the strictest state in this series on who you are, not just what you sell. The Motor Vehicle Dealer Board wants a Vantage credit score of 675 or higher, a $100,000 net worth with $25,000 of it liquid, a pre-licensing class, and a proctored exam. And the license itself is $900 — a number most guides still have wrong, because Colorado reissues its fee schedule every July 1.

Three Cars, Not Five

Most states put the dealer threshold at five or six vehicles. Colorado sets it at three. The Board’s regulation treats the sale or lease of three or more motor vehicles — or the offering for sale or lease of more than three — at the same address or telephone number in any one calendar year as prima facie evidence that you are in the business of selling vehicles.

That phrase “same address or telephone number” matters more than the count. It is what stops the common workaround of spreading sales across family members while running every ad from one phone.

The Financial Screen Is the Hard Part

Colorado is unusual in checking the applicant’s personal finances before it checks the lot:

• Vantage score of at least 675 for each applicant. The Division obtains its own credit bureau report from Experian rather than taking your word for it. If derogatory information appears, it must be resolved or explained in an attachment to the application.
• Total net worth of $100,000, of which at least $25,000 must be liquid — and the Board defines liquid narrowly as cash, bonds or stocks.
• A Statement of Financial Condition for the applicant and every owner.

If your credit is borderline, fix that before you sign a lease. It is the requirement that most often ends a Colorado application.

What It Costs

Item	Cost	Notes
Original dealer or wholesaler license	$900	License period 7/1/2026–6/30/2027
Renewal	$734	Late fee $50, all license types
Fingerprint-based criminal history check	$39.50	All original applicants
Surety bond	$50,000	$5,000 for small trailer dealers under 2,000 lbs
Original salesperson license	$217	Renewal $168
Additional location	$376	Address, class, ownership or name change: $217 each
Colorado LLC	$50	Periodic report $25/year

Check the year before you budget. Colorado states plainly that all fees are subject to change every July 1, and it publishes a dated DR 2246 schedule for each license period. The $900 figure above is from the schedule issued 04/30/2026 for the 2026–27 year; older guides still quoting figures in the $400s are reading a superseded sheet.

The Class and the Exam Are Two Separate Things

People conflate these. They are not the same requirement.

The pre-licensing education certificate is required for used motor vehicle dealer, wholesaler and wholesale motor vehicle auction applicants — unless you have held one of those licenses (or a powersports dealer license) within the last 3 years. The Dealer Board has approved exactly one provider: the Colorado Independent Automobile Dealers Association (CIADA) in Lakewood, which runs programs statewide and in Montrose.

The Mastery Exam is separate, required by C.R.S. 44-20-116, and computerized. You cannot simply take it at home: it must be administered either by a dealership licensed in Colorado or by a Board-approved third-party administrator — CADA, CIADA, PDAC or CAPSS. If the applicant is a corporation the managing officer sits the exam; if it is a partnership, every general partner does. Anyone who has held a current license within the last 12 months does not have to retake it.

How to Get Licensed, In Order

1. Check your credit against the 675 Vantage threshold and assemble proof of $100,000 net worth with $25,000 liquid.
2. Form the entity and get your Colorado sales tax license, so the bond and business documents all carry one name.
3. Take the CIADA pre-licensing class and get the certificate.
4. Pass the Mastery Exam through a licensed dealership or an approved administrator.
5. Bind the $50,000 bond, showing your full legal name and DBA on the principal line.
6. Submit fingerprints with the $39.50 check and file the application with the $900 fee.

Frequently Asked Questions

How many cars can I sell in Colorado without a dealer license?

Three is the line. Under the Motor Vehicle Dealer Board’s regulation, the sale or lease of three or more motor vehicles, or the offering for sale or lease of more than three, at the same address or telephone number in any one calendar year is prima facie evidence that you are in the business of selling vehicles and need a license.

How much does a Colorado dealer license cost?

$900 for an original dealer or wholesaler license in the license period running July 1, 2026 through June 30, 2027, and $734 to renew. Every original applicant also pays $39.50 for the fingerprint-based criminal history record check. Colorado republishes this fee schedule every July 1, so a figure quoted from last year is usually wrong.

Do I need good credit to get a Colorado dealer license?

Yes. The Dealer Board requires a Vantage score of at least 675 for each applicant, and the Division pulls its own credit bureau report from Experian to verify it. You must also show a total net worth of $100,000, of which at least $25,000 has to be liquid assets the Board defines as cash, bonds or stocks.

Is a pre-licensing class required in Colorado?

Yes for used motor vehicle dealer, wholesaler and wholesale motor vehicle auction applicants, unless you have held one of those licenses within the last 3 years. The Colorado Independent Automobile Dealers Association is the only provider the Dealer Board has approved. You must also pass the online Mastery Exam, which has to be administered by a licensed Colorado dealership or by CADA, CIADA, PDAC or CAPSS.

Taxes, the periodic report, licensing and hiring are covered in our full guide to starting a business in Colorado.

Sources

Source	What It Covers
Colorado Auto Industry Division — Dealer and Wholesaler Application	Three-vehicle threshold, $100,000 net worth with $25,000 liquid, Vantage 675, $50,000 bond, full application checklist
Auto Industry Division — Fee Schedule (DR 2246, 2026–27)	$900 original, $734 renewal, $39.50 fingerprint check, $50 late fee, salesperson and change fees
Auto Industry Division — Pre-Licensing Education Certificate	Who must take the class, the 3-year exemption, and the Board’s approved provider list
Auto Industry Division — Mastery Exam	C.R.S. 44-20-116, who must sit it, approved administrators, 12-month exemption

Comparing states? See our dealer license guides for every state we cover.