What a Colorado vehicle bill of sale is and why you need one
A vehicle bill of sale is a document that records the transfer of a car, truck, or motorcycle from one owner to another. In Colorado, it serves as proof that money changed hands and that both parties agreed to the sale. The bill of sale is not the title itself — that is the official ownership document — but it is the paper trail that shows how the title moved from seller to buyer.
You need a bill of sale because it protects both people in the transaction. For the seller, it proves they no longer own the vehicle and are not responsible for what happens to it after the sale. For the buyer, it documents the price paid, the vehicle's condition at handoff, and the seller's promise that they actually own what they are selling. Colorado law does not require a bill of sale to transfer a title, but the Colorado Department of Revenue strongly recommends one, and most lenders and insurance companies will ask for it.
The bill of sale also creates a record if something goes wrong later — a mechanical failure the seller did not disclose, a dispute over whether the sale actually happened, or questions about the vehicle's history. Without one, you have only your word against theirs.
Key Takeaways
- A bill of sale is a written record of the sale that protects both buyer and seller, even though Colorado does not legally require one to transfer the title.
- The document must include the vehicle identification number (VIN), the sale price, the date, and the signatures of both the seller and buyer.
- You can use a form provided by the Colorado Department of Revenue, a template from a legal website, or write your own as long as it contains all required information.
- The buyer will need the bill of sale when registering the vehicle with the Colorado Department of Revenue, and the seller should keep a copy for their records.
What information must go on a Colorado bill of sale
Colorado does not have a single official bill of sale form that you must use, but the document needs to include specific details to be useful. Start with the vehicle itself: the year, make, model, color, and most importantly the VIN (vehicle identification number), which is a 17-character code unique to that car. You can find the VIN on the dashboard at the bottom of the windshield on the driver's side, on the title document, or on insurance paperwork.
Next, write down the sale price in dollars — the actual amount of money that changed hands. Do not leave this blank or write "as is" without a number. Include the date of the sale, the seller's full name and address, and the buyer's full name and address. Both the seller and buyer must sign and print their names. If either person is married and the vehicle is community property, the spouse may need to sign as well, though this depends on how the title is currently held.
You can also note the vehicle's condition (for example, "sold as is" or "with warranty"), any mechanical issues the seller disclosed, and the odometer reading at the time of sale. These details are not required by law but they protect both parties by creating a record of what was promised.
Where to find a bill of sale form or template
The Colorado Department of Revenue does not publish an official bill of sale form, but the state does recognize bills of sale as valid proof of sale when you bring them to register the vehicle. You have three options for creating one.
First, you can read a template from the Colorado Department of Revenue website or from a legal document site like LawDepot or Rocket Lawyer. These templates are designed for Colorado and include all the fields you need. Second, you can ask your lender or insurance company if they have a form — many do, and they are already set up the way the company prefers. Third, you can write your own on plain paper as long as it includes all the information listed in the previous section. There is no magic to the format; what matters is that both parties sign it and all the details are there.
Whichever route you choose, print or write it clearly so that the Colorado Department of Revenue can read it when you submit it with your registration paperwork. If you are buying from a dealer, the dealer will usually provide the bill of sale as part of the sale package.
How to fill out and sign the bill of sale
Fill in all the blanks with accurate information. Use the VIN from the title or the vehicle itself, not a guess. Write the actual sale price, not a lower number to reduce taxes — the state can see through that, and it creates legal problems for both of you. Use the date the money actually changed hands, not a date from last week or next week.
Both the seller and buyer should sign the document in front of each other if possible. Some people have the signatures notarized, which means a notary public watches you sign and stamps the document. Notarization is not required in Colorado, but it adds a layer of proof that the signatures are real. If you are buying or selling a high-value vehicle or if you do not trust the other person, notarization is worth the small fee — usually $10 to $25.
Make at least two copies: one for the seller to keep, one for the buyer. The buyer will bring their copy to the Colorado Department of Revenue when registering the vehicle. The seller should keep their copy for at least a few years in case questions come up later.
When you need the bill of sale for Colorado registration
When you buy a vehicle in Colorado, you have 30 days to register it with the Colorado Department of Revenue. You can do this in person at any county clerk's office, by mail, or online through the state's website. You will need the bill of sale, the title (signed over by the seller), proof of insurance, and payment for registration and title fees.
The bill of sale tells the state that you bought the vehicle and at what price. The state uses the price to calculate sales tax if you have not already paid it. If you bought the vehicle from a private seller and did not pay sales tax at the time of sale, you will owe it when you register — Colorado charges 2.9 percent state sales tax plus any local sales tax in your county, which varies. The bill of sale is the document that proves the sale price for tax purposes.
If you are selling a vehicle, you do not have to register it in the buyer's name — that is the buyer's job. But you should keep a copy of the signed bill of sale to prove you sold it and are no longer responsible for it. If the buyer does not register it and something happens — an accident, a parking ticket, a tow — you could be held liable if you cannot show proof of sale.
What happens if you sell a vehicle without a bill of sale
Colorado does not require a bill of sale to transfer a title, so technically you can sell a car without one. However, doing so leaves both you and the buyer unprotected. Without a bill of sale, there is no written proof that the sale happened, what price was agreed to, or when the transfer occurred.
For the seller, this means if the buyer gets into an accident or racks up parking tickets before registering the vehicle, you might still be listed as the owner and held responsible. For the buyer, it means if the seller claims they never received payment or if the vehicle has hidden problems, you have no documentation to back up your side of the story.
Some buyers and sellers skip the bill of sale because they know each other or because they think it is too formal. This is a mistake. The bill of sale takes 10 minutes to fill out and costs nothing. It is the cheapest insurance you can buy in a vehicle transaction.
Frequently Asked Questions
Can I write a bill of sale by hand, or does it have to be typed?
You can write it by hand as long as it is legible and includes all the required information. The Colorado Department of Revenue does not require it to be typed or printed. However, typed documents are easier to read and look more official, so if you have access to a computer, typing is the better choice.
Do I need a bill of sale if I am trading in my vehicle at a dealership?
No. When you trade in a vehicle at a dealership, the dealer handles all the paperwork and the title transfer. The dealer will give you a receipt for the trade-in value, which serves the same purpose as a bill of sale. You do not need to create a separate bill of sale.
What if the seller will not sign the bill of sale?
Do not buy the vehicle. A seller who refuses to sign a bill of sale is a red flag. It suggests they may not actually own the vehicle, they are hiding something about its history, or they plan to claim later that the sale never happened. Walk away from the deal.
Do I need to notarize the bill of sale in Colorado?
Notarization is not required by Colorado law, but it is optional and recommended for high-value vehicles or when you do not know the other person well. A notary public will verify your identity and watch you sign, then stamp the document. This costs $10 to $25 and adds proof that the signatures are genuine.
What if I lose the bill of sale after I buy the vehicle?
If you have already registered the vehicle in your name, losing the bill of sale is not a major problem — the registration is your proof of ownership. However, if you need to prove when you bought it or what you paid for it (for insurance, taxes, or a dispute), you will not have that documentation. Ask the seller for a copy if you can, or keep the bill of sale in a safe place from the start.