How to Obtain an Auto Wholesale License in Colorado
If you want to become a wholesale auto dealer in Colorado, be prepared for a lengthy process. A wholesaler's license will allow you to sell new and used cars, obtain dealer license plates, buy cars at auto auctions and run a dealership. To protect consumers, auto dealers are subject to regulation and oversight. You will be required to learn Colorado laws and prove adherence to them in order to obtain your wholesaler license.
Other People Are Reading
Instructions
-
-
1
Attend a prelicensing education program. Program providers include Colorado Automobile and Powersport Support Services and the Colorado Independent Automobile Dealers Association. The program will inform you of the laws regarding automobile sales and prepare you for the mastery examination.
-
2
Take the mastery examination. The organization that provided prelicensing education will administer this exam. It is a 90-minute exam with 60 questions. You must answer at least 85 percent of the questions correctly to pass. It is an open notebook exam, but be sure to study beforehand.
-
-
3
Obtain a $50,000 surety from a bonding company. The bonding company should have the appropriate form for automobile dealers. The purpose of the bond is to protect consumers from potential fraud.
-
4
Obtain and fill out the documents included in the dealer/wholesaler application packet. Forms are available online (see Resources). This can be an involved and lengthy process. You need to fill out at least eight documents. Additional documents may be required depending on individual factors, such as a criminal record. The forms ask for personal information, financial information and planned business information. Follow the instructions provided carefully.
-
5
Gather the completed documents. Use the checklist provided to ensure that you have everything. Include the original surety bond in the packet. If you have a criminal record, include an explanation of all items that appear on it. Check the fee schedule on the Colorado Department of Revenue's website to see what fees must be paid. Include payment in the packet. Mail the completed packet to Department of Revenue, Auto Industry Division, Denver, CO, 80261-0016.
-
1
Tips & Warnings
You will be subject to criminal background and credit checks. Certain violent crimes and crimes involving financial fraud may invalidate you from receiving your license. An insufficient credit score also will invalidate you from receiving your license.
References
Resources
- Photo Credit Brand X Pictures/Brand X Pictures/Getty Images
