Motor Vehicle Salesperson or Powersports Vehicle Salesperson ($15,000) Bond - Statewide in Colorado

Brief Summary

Fifteen thousand dollars, flat, on the state's own form DR 2831, and it is one of the few items you can have finished before your dealer sponsor sends in the application. You pay a premium instead of parking $15,000 with the state or tying it up in a certificate of deposit, and at renewal the surety issues a continuation certificate rather than a whole new bond.

Colorado requires a $15,000 bond from every motor vehicle salesperson under C.R.S. 44-20-113(1) and from every powersports vehicle salesperson under C.R.S. 44-20-413(1). The amount is the same in both sections and does not vary with experience, dealer size or sales volume. The bond runs to the State of Colorado on Auto Industry Division form DR 2831, must be written by a corporate surety licensed in Colorado in a form approved by the attorney general, and is renewed each year when the license is renewed.

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How to Apply for a Motor Vehicle Salesperson or Powersports Vehicle Salesperson ($15,000) Bond:

• Line up dealer sponsorship first, since the license only exists for someone employed by a licensed dealer.
• Your full legal name exactly as it will appear on the license application.
• Personal information for the surety's underwriting review.
• Complete the bond application and review the quoted premium.
• Receive the executed $15,000 bond on form DR 2831, signed by you, countersigned by a Colorado resident agent, signed by the attorney-in-fact and notarized.
• Submit a photocopy or scanned copy of the bond with the application package: DR 2115, checklist DR 2234, Examination Affidavit DR 2097, identification and the fee.
• At renewal, have the surety issue a continuation certificate rather than a new bond.
• If you are licensed for both motor vehicle and powersports sales, ask for a rider instead of buying a second bond.

Detailed Information About the Colorado Motor Vehicle Salesperson or Powersports Vehicle Salesperson ($15,000) Bond:

One amount, two license types

There are no tiers. C.R.S. 44-20-113(1) sets a good and sufficient bond in the amount of fifteen thousand dollars for a motor vehicle salesperson, and C.R.S. 44-20-413(1) sets the same fifteen thousand dollars for a powersports vehicle salesperson. Form DR 2831 (01/19/21) is titled for both and has the $15,000 penal sum printed on it, citing 44-20-113(1) and 44-20-413(2).

If you hold or are seeking both licenses, read the last sentence of 44-20-113(1) before you buy a second bond. It says a motor vehicle salesperson need not furnish an additional bond, savings account, deposit, or certificate of deposit under that section if a bond, savings account, deposit, or certificate of deposit is furnished under section 44-20-413, and section 44-20-413 carries the matching provision the other way. The Auto Industry Division handles the paperwork side of this with a rider when a salesperson sells more than one vehicle type, so ask for a rider rather than a duplicate bond.

The bond is not the only way to satisfy this

Both sections let an applicant file evidence of a savings account, deposit, or certificate of deposit meeting the requirements of section 11-35-101 instead of a bond. That means locking up the money. Most salespeople buy the bond for the obvious reason, but the option exists and it is in the statute.

Claims work differently here

The bond is conditioned on performing in good faith as a salesperson, without fraud and without violating the provisions of the relevant part related to fraud that the board designates by rule. On top of that, no corporate surety is required to make any payment to a person claiming under the bond until a final determination of fraud has been made by the Motor Vehicle Dealer Board or by a court of competent jurisdiction. A customer complaint alone does not reach the bond.

What the form itself commits you to

DR 2831 runs to the State of Colorado to indemnify persons, firms and corporations for loss. It carries a 45 day written notice period for the surety to cancel, shortened to 10 days for nonpayment or within the first sixty days. It needs the principal's signature, the countersignature of a Colorado resident agent, the attorney-in-fact signature, and a notarized acknowledgment with the notary seal and commission expiration. The Auto Industry Division wants the bond to show your full legal name and to be signed by you, and a photocopy or scanned copy goes in with the application.

Things that must happen but do not replace the bond

You cannot hold this license on your own. A salesperson is licensed as someone employed directly or indirectly, regularly or occasionally, by a motor vehicle dealer, so you need dealer sponsorship before applying. You also have to pass the mastery examination with a score of 85 percent or better. It is an open book online test given by your hiring dealer or an approved third party at no cost, and the completed Examination Affidavit is form DR 2097. Sponsorship and a passing exam score are prerequisites, not bond substitutes. The application itself is DR 2115 with checklist DR 2234, and original applicants also go through a fingerprint based criminal history record check.

Dates and money

A salesperson license is valid for one year following the month of issuance, so a license issued on September 5 runs to September 30 of the following year. First time applicants work under a temporary license while the background investigation runs, valid for 120 days or until the permanent license is granted or denied. If it is denied you stop selling immediately. Statute allows a grace period for renewal under C.R.S. 44-20-111(4)(d), which the division describes as 30 days.

Under the DR 2246 fee schedule effective July 1, 2026 through June 30, 2027, an original salesperson license is $217, a renewal is $168, additional or multiple licenses are $168 and a transfer is $168. The fingerprint based criminal history record check for original applicants is $39.50. Fees change on July 1 each year.

The bond side of renewal is simple. C.R.S. 44-20-113(3) and 44-20-413(3) both require the bond to be renewed annually when the license is renewed, and allow the renewal to be done through a continuation certificate issued by the surety.

Eligibility and Requirements for a Colorado Motor Vehicle Salesperson or Powersports Vehicle Salesperson ($15,000) Bond:

• Bond amount of exactly $15,000 for either license type.
• Corporate surety duly licensed to do business in Colorado.
• State of Colorado as obligee, on Auto Industry Division form DR 2831, in a form approved by the attorney general.
• Name on the bond matching your full legal name on the license application.
• Colorado resident agent countersignature, attorney-in-fact signature and notarized acknowledgment.
• Renewed annually with the license, which the surety may do by continuation certificate.
• Alternative permitted by statute: a savings account, deposit or certificate of deposit meeting section 11-35-101.

Colorado Motor Vehicle Salesperson or Powersports Vehicle Salesperson ($15,000) Bond FAQs:

Official and Additional Resources for the Colorado Motor Vehicle Salesperson or Powersports Vehicle Salesperson ($15,000) Bond: