Selling a Car in Colorado

When you’re selling a vehicle in Colorado, there are some requirements you must meet that are specific to the state. We’ve collected the appropriate information here about these requirements so you can make certain that your vehicle sale in the state goes without a hitch.

1. Title Information

First, make certain you own your vehicle entirely. In Colorado, you can only sell a vehicle if you completely own it. In other words, any “lien” (loan) must be paid off before you can sell the vehicle.

Second, make sure that you have the actual title in your possession. If you cannot find the title, you’ll need to request a replacement title from the Colorado Division of Motor Vehicles (DMV). Do note that if you need a replacement title, you will also have to show a secure and verifiable form of identification to the state. You need an official title because both you and the new owner will sign the title as proof of the transfer of ownership from you to them. Make sure both of you completely fill out the title transfer section of the title, as you certainly don’t want to accidentally end up still owning the vehicle and being liable for anything the new driver does with it.

2. Bill of Sale Requirements

Colorado does not require you to put together a Bill of Sale because the appropriate information will all be put on the actual title itself. The information that you must enter into the title transfer section of the title includes the following:

  • The new owner’s name
  • The full address of the new owner
  • The seller’s name
  • The full address of the seller
  • The date of the sale
  • The sale price
  • A full and detailed vehicle description, including the vehicle’s make, model, year, series number (if applicable) and body type (2-door, 4-door, sedan, etc.), as well as the vehicle identification number (VIN)
  • The vehicle odometer reading at the time of sale
  • The signatures of the seller and new owner

Be aware that the sale of your vehicle may be taxable; check with your accountant or financial adviser for more on this.

3. Inspections

Colorado requires emissions testing only in specific areas of the state. If you are selling the vehicle in one of these areas, you are required to have a valid emissions inspection certificate for the buyer, who must carry it in the vehicle at all times. For more information on which areas of Colorado require emissions testing, check out the Colorado DMV website’s emissions page.

4. License Plates

In Colorado, when you sell your vehicle, you will get to keep the license plates and may be able to put those same plates on your next vehicle. This does mean that the new owner will have to order new plates from the Colorado DMV.

5. Odometer Disclosure Requirements

In Colorado, you are required to disclose your vehicle’s odometer reading when you sell the vehicle. Writing the odometer reading on the back of the vehicle title when transferring the title satisfies this requirement.

6. Other Information

If you have other questions or want more details on anything relating to vehicle selling, check out the Colorado DMV website.