How To Sell a Car in Colorado

Selling a motor vehicle in Colorado requires a valid transfer of ownership, delivery of the title and supporting sale documents, and compliance with any lien, emissions, or out-of-state title requirements that apply to the vehicle. The principal agency responsible for titling and registration is the Colorado Division of Motor Vehicles (DMV), and most title transactions are processed through county motor vehicle offices, which act as authorized agents.

What You Need To Know Before Selling a Car in Colorado

Colorado Title Law and Ownership Requirements

For a standard highway motor vehicle, a Colorado sale must be supported by a certificate of title. Under C.R.S. Section 42-6-110, the titled owner must execute a formal transfer, and the purchaser must present the transferred title and an application for a new title to the director or an authorized agent within 60 days.

Vehicles Exempt from Title Requirements

Colorado’s title law does not apply to every type of vehicle. The exemptions in Title 42 include low-power scooters, electric scooters, rail vehicles, farm tractors, and farm trailers used in agricultural production, and special mobile or industrial machinery not designed primarily for highway transportation. Certain off-highway vehicles are also excluded in limited statutory circumstances. Those exemptions generally do not apply to an ordinary passenger car, pickup, van, or SUV offered for private sale.

Satisfying an Existing Lien

If a lien is still active, that lien must be released before a clean title can be issued without the lien notation. A Colorado-filed lien may be released on the title itself or by a separate lien release letter that identifies the vehicle, the titled owner, the signing agent, and the date of release. The release must be signed under penalty of perjury in the second degree, or, if the lienholder uses a notarized declaration, be notarized.

Inspection, Emissions, or VIN Verification Requirements

Colorado does not impose a general pre-sale safety inspection for a private passenger vehicle transfer, but some transactions require emissions compliance or VIN verification. In the Denver metropolitan area and the North Front Range, a passing emissions inspection is required when the buyer resides in an emissions area, and the vehicle is not exempt. Additionally, if a gasoline vehicle is transferred in the last year of the seven-year exemption, or a diesel vehicle is transferred in the last year of the four-year exemption, an emissions test is required for the transfer.

If the vehicle is being titled in Colorado from an out-of-state title, the buyer must submit a completed VIN verification on Form DR 2698 through an approved verifier.

Situations Involving Lost Titles, Duplicate Titles, or Title Correction

If the original title has been lost, stolen, mutilated, altered, or is otherwise unavailable, the owner must obtain a duplicate title before an ordinary sale can be completed with proper title documentation. Form DR 2539A is used for duplicate title and lien-release title requests.

Documents Required To Sell a Car in Colorado

Certificate of Title

The title is the primary ownership document. Sellers must provide the Colorado certificate of title, enter the purchase price and date, and sign in the seller section. If more than one owner is named on the face of the title, all owners listed there must sign as sellers.

Bill of Sale

For a private-party transaction, a bill of sale that identifies the vehicle by year, make, and VIN, shows the date and time of sale, and bears the signatures of both parties is needed. Colorado also treats the bill of sale as part of the title and tax documentation presented to the county office.

The official Secure Motor Vehicle Bill of Sale (DR 2173) is a secure title form, rather than a standard downloadable form.

Odometer Disclosure Statement

Colorado requires a completed odometer disclosure in the title packet. The mileage reading and indicator information may be completed on the title itself or disclosed on Form DR 2173. For vehicles with model years of less than 10 years in certain title-establishment procedures, the mileage must be disclosed on Form DR 2173.

Damage Disclosure, Emissions Records, Lien Release, or Other State-Specific Forms

Additional documents are required in some transactions. If the vehicle is subject to emissions testing, the seller must provide a passing emissions result when the buyer resides in an affected area.

If a lien is recorded, the seller must provide the lien-release documentation required for a clear title record. If the vehicle has a rebuilt-from-salvage history, C.R.S. Section 42-6-206 requires disclosure before sale, and Form DR 2710 is the branded title disclosure form.

The buyer’s title application is made on Form DR 2395, titled Application for Title and/or Registration.

How To Transfer a Car Title in Colorado

Step 1: Resolve Any Title or Lien Issue Before the Sale

Before the vehicle is transferred, the seller should confirm that the correct title is available and that any lien has been satisfied. If the title is unavailable, a duplicate title should be obtained first. If the lien has been paid, the lien release or lien-release title process should be completed so the buyer receives valid ownership documents.

Step 2: Complete the Title Assignment

At the time of sale, the seller completes the assignment on the certificate of title by entering the sale information and signing in the seller's section. If multiple owners are listed on the title, all listed owners must sign.

Step 3: Prepare the Bill of Sale and Odometer Disclosure

The parties should complete a bill of sale containing the vehicle description, sale date, time of sale, price, and signatures. The odometer disclosure must also be completed in the manner permitted by the Colorado DMV, either on the title or on the secure Form DR 2173.

Step 4: Add Any Required Supporting Documents

Some transactions require additional paperwork. That may include a passing emissions result, a lien release, a branded-title disclosure, or a VIN verification for an out-of-state title. The exact requirements depend on the vehicle's record and where the buyer will title and register it.

Step 5: Deliver the Documents to the Buyer

The seller delivers the endorsed title and all supporting sale documents to the buyer. In a standard private sale, that packet generally includes the assigned title, the bill of sale, the odometer disclosure, and any additional documents needed for the county office to process the new title.

Step 6: Buyer Submits the Title Application

The buyer must submit the title documents to the county motor vehicle office in the county of residence. The purchaser must present the transferred title and application for a new title within 60 days. If the vehicle is being titled in Colorado from another state, the buyer must also submit DR 2698 and any applicable emissions documentation.

Title Transfer Fee Schedule in Colorado

Colorado DMV implements the following state title fees as reflected in Form DR 2539A:

County offices may also collect registration charges, taxes, and other locally applicable filing amounts.

Sales Tax on Private Vehicle Sales

Colorado taxes motor vehicle purchases under the state sales and use tax system at 2.9%. For a private-party vehicle sale, the seller generally does not collect the tax if the seller is not a retailer required to hold a sales tax license.

Instead, the purchaser generally pays the applicable state and local taxes to the county clerk at the time of registration. Local city, county, and special district taxes may also apply, depending on the place of registration and other factors identified by the Department of Revenue.

What To Do After Selling a Car in Colorado

Colorado requires sellers to remove their license plates when the vehicle is sold. Regular plates may be returned to the county motor vehicle office or recycled as metal. License plates generally cannot be transferred to another vehicle unless they are personalized plates or horseless carriage plates.

An optional seller-protection filing after the sale is implemented in Colorado. Within 5 days, the seller may report the transfer of ownership through myDMV using the report release of liability service, or the report may be made at the county motor vehicle office. This filing is not mandatory, but it is available to document the vehicle's transfer.

After the sale is completed and the plates are removed, the vehicle's insurance policy should be updated with the insurer so the policy record reflects the current ownership and plate status.

Copies of the title assignment, bill of sale, lien release, emissions paperwork, and any release-of-liability filing should be retained in case questions later arise concerning ownership, tolls, citations, taxes, or insurance.

Contact Information

Colorado Division of Motor Vehicles
1351 5th St., Suite 100, Denver, CO 80204
Phone: (303) 205-5608
Official Website: Colorado Division of Motor Vehicles