Is a Vehicle Bill of Sale Required in Colorado?

There is a document that acts as proof of the sale or exchange of the vehicle. This document is called a vehicle bill of sale and is widely used in Colorado. This is the official legal tool for personal reporting and registering a vehicle.

The document shows that the transaction has been completed on terms that suit all parties (seller and buyer) and that the item has passed into the new owner’s possession. A bill of sale provides good insurance against unscrupulous sellers. The main thing is to carefully check the document before signing it and keep a certified copy.

A bill of sale for a motor vehicle is one of the most common types of this document in Colorado and accompanies all car purchases. If you buy a car from a dealer, they usually prepare all the paperwork themselves. If you buy a vehicle from a private party, you will have to draw up the document together by yourself.

In Colorado, this form is required to register a vehicle. If you buy a car at a dealership, they usually prepare a package of documents on their own and send it for registration. Otherwise, you must complete this process within 30 days of purchase.

The documents that you will need to collect:

  • VIN verification (if the vehicle has the title of another state)

  • Vehicle title

  • Verifiable ID with photo

  • Proof of insurance

  • Proof of vehicle emissions

What Should Be Included in a Vehicle Bill of Sale?

The bill of sale for vehicles outlines the transaction terms. It includes essential details about the vehicle, such as the vehicle identification number (VIN), make, model, year, and purchase price. Both the buyer and the seller must complete and sign the bill of sale.

Colorado law does not mandate using a specific legal language for this form; everything can be straightforward. However, you must ensure your form includes all the necessary parts, namely:

  • Details of the buyer and seller, including names, addresses, and contact information (if a dealer is involved, the official company name is indicated)

  • Date of creation of the document and date of the transaction

  • Description of the vehicle, including model, type, year, VIN, and condition

  • Odometer reading (the actual mileage of the vehicle)

  • Sale amount

  • Signatures of the parties

Colorado does not require the notarization of the form, but you can still do it. Make the document in several copies so the seller and the buyer have their records.

It's a good idea to consult legal professionals or the Colorado Division of Motor Vehicles (DMV) for any specific requirements or updates related to vehicle transactions and bill of sale documents in the state. You can also find the official bill of sale template on the DMV website.

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