What a Colorado bill of sale is and why you need one
A bill of sale is a written record that documents the transfer of a vehicle from one owner to another. In Colorado, it serves as proof that you bought or sold a car, truck, or motorcycle, and it protects both the buyer and seller by creating a paper trail of the transaction. The state does not require a bill of sale to register a vehicle, but it is the single most important document you can have if a dispute arises later — whether about the sale price, the vehicle's condition, or who owned it on a specific date.
Colorado law does not mandate a specific form for a bill of sale. You can write one yourself on plain paper, use a template, or use the form provided by the Colorado Department of Revenue. What matters is that the document includes the essential information: the names and addresses of both buyer and seller, the vehicle identification number (VIN), the year, make, and model, the sale price, and the date of the sale. Both parties should sign and keep a copy.
The bill of sale becomes especially important if you are buying a used vehicle from a private party. It gives you a record of what you paid and what condition the seller said the vehicle was in at the time of purchase. If the seller later claims you still owe money, or if the vehicle has a hidden lien, the bill of sale is your proof of when and how the transaction occurred.
Key Takeaways
- A bill of sale documents the transfer of ownership and protects both buyer and seller, even though Colorado does not legally require one.
- You can write a bill of sale yourself or use the Colorado Department of Revenue form, as long as it includes the VIN, vehicle details, sale price, date, and signatures from both parties.
- The bill of sale should be signed and dated by both the buyer and seller, and each party should keep a copy for their records.
- When buying a used vehicle, a bill of sale protects you against later claims about liens, unpaid loans, or disputes over the sale price.
What information must go on a Colorado bill of sale
The bill of sale should include the seller's full name and address, the buyer's full name and address, and the vehicle's complete identification: the VIN (found on the dashboard or title), the year, make, model, and body style. You should also note the vehicle's mileage at the time of sale, the sale price in dollars, and the date the sale occurred.
If the vehicle is being sold "as-is," you can add that phrase to the bill of sale. If there are known defects or damage, listing them on the bill of sale protects the seller by showing the buyer knew about the problems before purchase. For example: "Vehicle sold as-is with known transmission noise" or "Windshield has crack on driver's side." This prevents the buyer from later claiming they were unaware of the condition.
Both the buyer and seller must sign the bill of sale. Some people also have it notarized, though Colorado does not require notarization for a bill of sale to be valid. Notarization adds a layer of proof that both parties actually signed the document, which can be useful if there is ever a dispute.
Where to get a bill of sale form in Colorado
The Colorado Department of Revenue does not publish an official bill of sale form on its website, but you can find templates through the Colorado Secretary of State's office or use a generic bill of sale template from a legal document provider. Many online sources offer free templates that meet Colorado's requirements.
You can also write your own bill of sale from scratch on plain paper. There is no legal requirement that it be printed on a special form or use specific wording, as long as it contains the essential information: both parties' names and addresses, the VIN and vehicle details, the sale price, the date, and signatures. Handwritten bills of sale are legally valid in Colorado.
If you are buying or selling through a dealership, the dealership will provide the bill of sale as part of the paperwork. Private sales are where you need to create your own bill of sale or use a template.
How to complete and sign the bill of sale
Fill in all the blanks with accurate information. Use the VIN from the vehicle's title or dashboard — do not guess or abbreviate. Write out the full names of both buyer and seller as they appear on their driver's licenses. Include complete street addresses, not just city and state.
Write the sale price as a dollar amount. If the vehicle is being given as a gift, you can write "$0" or "gift," but be aware that Colorado may still assess a use tax based on the vehicle's fair market value when you register it. List the date the sale occurred, not the date you are signing the bill of sale if they are different.
Both the buyer and the seller should sign and print their names on the bill of sale. If either party is signing on behalf of a business or estate, that should be noted (for example, "John Smith, as executor of the estate of Jane Smith"). Each party should keep a copy. If you are the buyer, keep your copy with the title and registration documents. If you are the seller, keep your copy as proof that you transferred ownership on a specific date.
Using the bill of sale when you register the vehicle
When you take the vehicle to the Colorado Division of Motor Vehicles (DMV) to register it in your name, you will need the bill of sale along with the title, proof of insurance, and proof of residency. The bill of sale is not filed with the DMV — you keep it — but it serves as supporting documentation that you are the legitimate buyer.
If the title is not available (for example, if the seller lost it), the bill of sale becomes even more critical. The DMV may ask for the bill of sale to help establish the chain of ownership. In some cases, if the title is missing and there is a lien on the vehicle, the bill of sale helps the DMV determine whether you are buying the vehicle subject to that lien or whether the seller is responsible for paying it off.
Keep your copy of the bill of sale for at least as long as you own the vehicle. If you sell the vehicle later, you may need to show it as part of the documentation that you owned it during a certain period.
What happens if there is no bill of sale
Without a bill of sale, you have no written proof of when you bought the vehicle, what you paid for it, or what condition it was in at the time of purchase. If a dispute arises — for example, if the seller claims you still owe money, or if a lien appears on the title after you have already paid — you have no documentation to defend yourself.
If you bought a vehicle without a bill of sale and later discover a problem, you may still have recourse under Colorado's lemon law or consumer protection statutes, but you will have a harder time proving your case. The bill of sale is the easiest and cheapest way to protect yourself.
If you are selling a vehicle and the buyer later claims you misrepresented its condition, a bill of sale that notes "as-is" or lists known defects protects you by showing the buyer was aware of those issues before purchase.
Bill of sale and Colorado's use tax
Colorado assesses a use tax on vehicles purchased from private parties. The tax rate is based on the sale price you report. When you register the vehicle at the DMV, you will be asked to provide the bill of sale or other proof of the purchase price so the state can calculate the tax owed.
If you do not have a bill of sale, the DMV may use the vehicle's fair market value (determined by resources like NADA Guides or Kelley Blue Book) to calculate the tax instead of the actual price you paid. This could result in a higher tax bill than if you had documented the lower price on a bill of sale.
Keeping an accurate bill of sale with the correct sale price protects you from overpaying use tax and gives you documentation if the DMV questions the price later.
Frequently Asked Questions
Do I need a notarized bill of sale in Colorado?
No, Colorado does not require notarization for a bill of sale to be valid. However, having it notarized adds proof that both parties actually signed it, which can be useful if there is ever a dispute. Notarization costs between $10 and $25 and takes a few minutes at a bank, notary public, or some legal document services.
Can I use a bill of sale from another state?
Yes, as long as it contains all the required information: both parties' names and addresses, the VIN, vehicle details, sale price, date, and signatures. Colorado does not require a state-specific form. However, using a Colorado template ensures you are not missing any information Colorado's DMV might ask for.
What if the seller will not sign a bill of sale?
A seller's refusal to sign a bill of sale is a red flag. It suggests the seller may have a lien on the vehicle, may not actually own it, or may be hiding something about its history. Do not complete the purchase without a signed bill of sale and a clear title. If the seller refuses, walk away from the deal.
Can I write a bill of sale after the sale has already happened?
Yes, you can write and sign a bill of sale after the sale, but it is better to do it at the time of the transaction. If you write it later, date it with the actual date of the sale, not the date you are signing it. Both parties should still sign it. A bill of sale written after the fact is still valid, but it is less convincing as proof if there is ever a dispute.
Is a bill of sale the same as a title?
No. The title is the legal document issued by the state that proves ownership. The bill of sale is a private record between buyer and seller that documents the transaction. You need both: the title transfers ownership, and the bill of sale proves you bought it and what you paid. The seller keeps the title until you register the vehicle; you keep the bill of sale as your record of the purchase.