Colorado requires a bill of sale for most vehicle transfers, and the state has specific rules about what information must be on it
A bill of sale is a written record that documents the transfer of a vehicle from one owner to another. In Colorado, you do not need to use an official state form — you can write one yourself on plain paper — but it must contain certain information and be signed by both the seller and buyer. The Colorado Department of Revenue does not provide a mandatory bill of sale template, which means you have flexibility in format as long as you include all required details.
The bill of sale serves as proof of ownership transfer and protects both parties. The seller uses it to show they no longer own the vehicle, and the buyer uses it as evidence of purchase when registering the vehicle with the Colorado Division of Motor Vehicles (DMV). Without a bill of sale, the DMV will not process a title transfer, and disputes over ownership become much harder to resolve.
Key Takeaways
- Colorado does not require a specific bill of sale form, but the document must include the vehicle identification number (VIN), sale price, date of sale, and signatures from both buyer and seller.
- Both the seller and buyer should keep a signed copy of the bill of sale for their records before submitting it to the DMV.
- The bill of sale must be presented to the Colorado DMV along with the vehicle title when the buyer registers the vehicle in their name.
- If the vehicle has a lien (outstanding loan), the lienholder's name and address must appear on the bill of sale.
Required information on a Colorado bill of sale
Your bill of sale must include the vehicle's VIN (Vehicle Identification Number), which is a 17-character code found on the dashboard, driver's side door jamb, or the vehicle title. You also need the vehicle's year, make, model, and color. The sale price must be stated in dollars, even if the vehicle was traded for something other than money — in that case, write the fair market value of what was exchanged.
Both the seller's and buyer's full legal names, addresses, and phone numbers should appear on the bill of sale. The date of the sale must be included. If the vehicle has an outstanding loan, the name and address of the lienholder (usually a bank or credit union) must be listed. The seller should sign and print their name, and the buyer should do the same. Some people add the odometer reading at the time of sale, which is helpful for the buyer's records but not legally required in Colorado.
The bill of sale does not need to be notarized in Colorado, though having it notarized adds an extra layer of verification and can be useful if a dispute arises later. If you choose to have it notarized, both parties should sign in front of the notary public.
How to write a bill of sale yourself
You can create a bill of sale using a word processor, write it by hand, or print a template from a reliable source. Start with a heading that says "Bill of Sale" or "Vehicle Bill of Sale." Then list all the required information in a clear order: seller details, buyer details, vehicle details (VIN, year, make, model, color), sale price, date, and lienholder information if applicable.
Write the document in plain language. For example: "I, [Seller Name], hereby sell the vehicle described below to [Buyer Name] for the sum of $[amount]." Then list the vehicle details. At the bottom, include signature lines for both parties with spaces to print their names and the date they signed. Leave enough space between sections so the document is straightforward to read.
Keep the bill of sale to one or two pages. There is no length requirement, and a straightforward, clear document works better than a complicated one. Both the seller and buyer should sign and date the document before any money changes hands or the vehicle is transferred.
What happens after you sign the bill of sale
Once both parties have signed, each should keep a copy for their records. The buyer will need to bring the original or a certified copy to the Colorado DMV along with the vehicle title, proof of insurance, and a completed process for Vehicle Registration (Form DR 2261). The DMV uses the bill of sale to verify the sale price and confirm that both parties agreed to the transfer.
The seller should keep their signed copy to prove they no longer own the vehicle. If the seller is later contacted about the vehicle — for example, if it is involved in an accident or receives a traffic ticket — they can show the bill of sale to prove ownership was transferred. The buyer should not register the vehicle until they have the signed bill of sale in hand.
Special situations: liens, trade-ins, and private sales
If the vehicle has a lien, the lienholder must be listed on the bill of sale. The seller is responsible for paying off the loan before or at the time of sale. Some lienholders require that the payoff check be sent directly to them, and the title cannot be transferred until the lien is satisfied. Make sure this is handled before the buyer takes possession of the vehicle.
In a trade-in situation, the dealer typically handles the bill of sale as part of the transaction. However, if you are trading a vehicle privately with another individual, you still need a bill of sale. Write the sale price as the fair market value of the vehicle being traded, or note the exchange of vehicles by description.
Private sales between individuals follow the same rules as dealer sales in Colorado. There is no special form or process for private transactions. The bill of sale is equally important whether you are buying from a dealer, a private seller, or a family member.
Common mistakes to avoid
Do not leave the VIN blank or write it incorrectly — the DMV will reject the registration if the VIN does not match the title. Do not forget to include the sale price; the DMV needs this to calculate registration fees and taxes. Do not have only one party sign; both the seller and buyer must sign for the bill of sale to be valid.
Avoid writing the sale price as "cash" or "as agreed" without stating a dollar amount. The DMV needs a specific price. If you are unsure of the fair market value of a traded vehicle, use the Kelley Blue Book or NADA Guides to estimate it and write that figure on the bill of sale.
Do not assume the bill of sale is complete just because it has signatures. Review it one more time to make sure all required information is present and legible before submitting it to the DMV. A bill of sale with missing or illegible information will delay the registration process.
Where to submit the bill of sale in Colorado
The buyer submits the bill of sale to the Colorado DMV as part of the vehicle registration process. You can register a vehicle online through the Colorado DMV website, by mail, or in person at a local DMV office. If you register online, you will need to upload an image of the bill of sale. If you register by mail or in person, bring the original signed bill of sale along with the title, proof of insurance, and the registration process.
The DMV does not keep the bill of sale permanently in your file, but it uses the information to process the title transfer. Once the registration is complete, the buyer receives a new title in their name. The seller's name is removed from the title at that point.
Frequently Asked Questions
Can I sell a vehicle without a bill of sale in Colorado?
Technically, you can transfer a title without a bill of sale if both parties appear at the DMV together, but this is not recommended. A bill of sale protects both the seller and buyer by creating a written record of the transaction. Without it, disputes over price, condition, or ownership are harder to resolve. The DMV strongly encourages sellers and buyers to use one.
Do I need to have the bill of sale notarized?
No, Colorado does not require notarization for a bill of sale. However, having it notarized adds credibility and can be useful if a dispute arises later. A notary public charges a small fee (usually $5 to $15) and verifies that both parties signed the document in their presence.
What if the seller and buyer disagree on the sale price?
This is why a signed bill of sale is critical. Once both parties sign, the price stated on the bill of sale is the agreed-upon amount. If a dispute arises after signing, the bill of sale is the legal record of what was agreed. To avoid this problem, make sure both parties understand and agree on the price before signing.
Can I use a bill of sale template from the internet?
Yes, many websites offer free Colorado bill of sale templates. Make sure the template includes all required information: VIN, vehicle details, sale price, buyer and seller information, and signature lines. Review the template carefully and fill in all fields completely before both parties sign.
What if I lose my copy of the bill of sale after I sell the vehicle?
If you are the seller, contact the buyer and ask for a copy. If the buyer has already registered the vehicle, you can request a copy from the Colorado DMV, though they may charge a small fee. Keep your copy in a safe place for at least several years in case questions arise about the sale.