Bill of Sale Aug 13, 2026
If you're buying or selling a used car in Colorado through a private sale, you've probably heard the term bill of sale thrown around. It sounds like paperwork you can skip — and in many Colorado transactions, the title itself can technically cover the transfer. But a bill of sale is still the single easiest way to protect both sides of a private car deal, and in a few specific situations, Colorado law makes it necessary.
This guide walks through when Colorado requires a bill of sale, what it must include, how the private sale process works from start to finish, what it costs, and where private sellers run into trouble. Every figure below is sourced directly from Colorado state government pages, so you can verify anything before you sign.
Selling through KarKiosk already gives you a secure way to list your vehicle and connect with verified buyers — this guide fills in the paperwork side so the rest of the transaction goes just as smoothly.
What Is a Colorado Bill of Sale?
A Colorado bill of sale is a signed document that records the transfer of a vehicle from a seller to a buyer. It typically lists the vehicle's year, make, model, and VIN, the purchase price, the odometer reading, the date of sale, and the printed names and signatures of both parties.
According to the Colorado Department of Revenue's Division of Motor Vehicles, if the title is completed correctly — with the price, date, and odometer disclosure filled in — a separate bill of sale is not always required to transfer the title. However, the DMV describes providing one as best practice, and it becomes required in specific circumstances, such as when the sale price is left off the title.
Source: Colorado DMV — Private Sale: Buying or Selling a Vehicle in Colorado
When Is a Bill of Sale Required in Colorado?
Colorado's DMV points to a short list of situations where a bill of sale isn't optional:
● The sale price isn't recorded on the title.
● There's no space left on the title to record the odometer reading, so the disclosure has to move to a separate form.
● The buyer needs to drive the vehicle before it can be registered, such as after county offices are closed.
In these cases, sellers use the state's secure DR 2173 Motor Vehicle Bill of Sale form, purchased through a state-approved vendor, or an equivalent written document. Some Colorado counties also provide their own bill of sale template through the local Clerk & Recorder's office.
Source: Colorado DMV — Private Sale: Buying or Selling a Vehicle in Colorado
What Information Belongs on a Colorado Bill of Sale?
Whether you use the state's DR 2173 form or a written equivalent, the DMV recommends including the following details so the document holds up as a legal record of the sale:
| Section | What to Include |
|---|---|
| Vehicle details | Year, make, model, and VIN, matched exactly to the title |
| Sale details | Purchase price, date, and time of sale |
| Odometer disclosure | Actual mileage reading, or a note if mileage is unknown or exceeds mechanical limits |
| Seller information | Printed name(s) exactly as they appear on the title, and signature(s) |
| Buyer information | Printed name and address, and signature |
| Plate handling | Confirmation that the seller has removed the license plates |
Source: Colorado DMV — Private Sale: Buying or Selling a Vehicle in Colorado
Step-by-Step: Completing a Private Vehicle Sale in Colorado
Colorado splits responsibility for a clean transfer between both parties. Here's what each side needs to handle.
Seller Responsibilities
● Properly endorse the title: sign and print your name in the "Seller" section, matching your signature exactly to the name on the front of the title.
● Disclose the odometer reading on the title or on a DR 2173 form. This is required for every ownership transfer during the first 20 years of a 2011-or-newer vehicle's life.
● Provide a bill of sale with the purchase price, date, VIN, year, make, model, and both parties' names and signatures.
● Provide a passing emissions certificate if the vehicle is more than 7 model years old and the buyer lives in an emissions-testing county.
● Remove your license plates. In Colorado, plates belong to the owner, not the vehicle — leaving them on can make you liable for the buyer's future tickets or tolls.
● Report the sale within 5 days using the "Report Release of Liability" tool on myDMV, or at your county motor vehicle office.
Buyer Responsibilities
● Verify the VIN on the title matches the VIN physically on the vehicle.
● Check for fraud using Colorado's Motor Vehicle Verification System and the National Motor Vehicle Title Information System before you pay.
● Confirm the odometer reading and sign the disclosure in the "Buyer" section on the back of the title.
● Get Colorado-compliant insurance before driving the vehicle.
● Use the 36-hour rule carefully: you can legally drive a newly purchased vehicle without plates for up to 36 hours, but only while carrying the signed bill of sale and proof of insurance, and only driving from the seller's location to your home or a registration office.
● Title and register within 60 days. Miss the window and Colorado assesses late fees of $25 per month (or portion of a month), up to a maximum of $100.
Source: Colorado DMV — Private Sale: Buying or Selling a Vehicle in Colorado
Colorado Vehicle Sales Tax and Registration Costs
Colorado's state sales and use tax on vehicle purchases — private sale or dealership — is a flat 2.9%, charged on the purchase price. Counties, cities, and special districts can add their own local sales taxes on top of that base rate, and those local rates vary by where the buyer lives, not where the sale takes place.
Source: Colorado Department of Revenue — Sales Tax Guide
On top of tax, Colorado residents who register a vehicle also pay a Keep Colorado Wild Pass — a $29 charge automatically included in most registration transactions, which residents can opt out of if they choose.
Source: Douglas County, CO — Motor Vehicle & Driver License
| Cost Item | Amount | Notes |
|---|---|---|
| State sales/use tax | 2.9% of purchase price | Applies to private sales and dealer sales alike |
| Local sales tax | Varies by county/city | Added on top of the 2.9% state rate |
| Keep Colorado Wild Pass | $29 | Included by default; residents may opt out |
| Late registration fee | $25 per month (max $100) | Charged if title/registration isn't completed within 60 days of purchase |
Source: Colorado DMV — Private Sale: Buying or Selling a Vehicle in Colorado
Why a Bill of Sale Matters: Fraud and Vehicle Theft in Colorado
A signed bill of sale isn't just paperwork — it's your evidence of when ownership changed hands. That matters in Colorado more than in most states. The Colorado Bureau of Investigation's own crime data, compiled quarterly by the state's Division of Criminal Justice, recorded a motor vehicle theft rate of 121.6 incidents per 100,000 residents in the first quarter of 2024, a 21% drop from the previous quarter but still a meaningful risk for private sellers and buyers alike.
Source: Colorado Division of Criminal Justice — Quarterly Crime Trends, 2024 Q1
For sellers, that's exactly why removing your plates and filing a Release of Liability within 5 days matters — without it, a vehicle involved in a crime or accident after the sale can still trace back to your name. For buyers, running the vehicle through Colorado's Motor Vehicle Verification System before paying is a quick way to confirm it hasn't been reported stolen.
Odometer Disclosure: A Federal and State Requirement
Odometer disclosure is one of the most commonly missed steps in a private sale. Colorado requires it for every ownership transfer during the first 20 years of a vehicle's life for model year 2011 and newer, with limited exceptions for vehicles 20 years or older, trailers, and vehicles rated above 16,000 lbs.
Sellers must certify the actual mileage, or disclose if the reading is unknown or exceeds what the odometer can mechanically record. Getting this wrong — intentionally or not — can affect the vehicle's resale value and create legal exposure for the seller down the line.
Source: Colorado DMV — Private Sale: Buying or Selling a Vehicle in Colorado
Common Mistakes Private Sellers and Buyers Make
● Leaving the license plates on the car when it drives away — Colorado plates stay with the owner, not the vehicle.
● Skipping the Release of Liability filing, which leaves the seller connected to the vehicle after the sale.
● Forgetting the odometer disclosure or filling it out inconsistently between the title and the bill of sale.
● Waiting past the 60-day registration window, which triggers late fees for the buyer.
● Not checking for an emissions requirement before the sale closes, if the buyer lives in a testing county and the vehicle is more than 7 model years old.
How KarKiosk Makes the Private Sale Process Easier
KarKiosk is built for exactly this kind of private, peer-to-peer car sale. Listing your vehicle on karkiosk.com gives you a straightforward way to reach real buyers, while the paperwork side — the bill of sale, the odometer disclosure, and the title transfer — stays firmly in your hands and under Colorado's rules. Whether you're the one selling or the one buying, having a clear, well-documented bill of sale alongside your KarKiosk listing keeps the transaction simple and protects both sides after the deal is done.
