Vehicle Selling Guide In Colorado
Selling your car privately rather than choosing through a dealership can get you a better price—but you'll have to follow the state-mandated procedure. Every state has its own set of rules governing the private sale of automobiles. If you do not complete all the steps, you may be held legally responsible for the vehicle even after the buyer drives it away.
First Thing To Do
The best way to sell a used car is to make potential buyers believe the vehicle is brand new. Give your car a thorough cleaning before taking pictures of it to sell. This includes vacuuming all of your car's nooks and crannies. Wipe down all surfaces to remove dust and dirt before hiring a cleaner or detailer to help you polish the inside. Outside, give your car a thorough cleaning, cleaning everything from the tires to the grille. Buyers will be more likely to purchase if the evidence of use is removed. A clean, shiny car appears newer and more reliable than a dirty, neglected car.
Requirements For Selling Your Car
If you're looking to sell a used car instead, there are a few things you should be aware of. Selling a vehicle will almost always get you a higher price than trading it in at your dealership, so it's worthwhile. You will need to handle paperwork, negotiations, and some marketing to generate interest in your vehicle.
To sell your car privately in the state of Colorado, you'll need to gather a few forms and documents. Check that you have all of the following:
Clean Vehicle Title
In many ways, your vehicle's title is the most important document. It serves as a legal proof that you are the owner of the vehicle. This is significant because the car cannot be sold or transferred without a clear title.
A clean title is legible, it has not been damaged, tampered or torn, and contains current, accurate information. If you no longer have a clear title, you must complete and return form DR 2539A, along with an $8.20 administrative fee, to request a duplicate.
Similarly, if a lien is on your title, your loan must be paid in full before selling the car. You can do this personally, have the car buyer pay for you on your behalf, or use an escrow service to ensure payment.
Clean Emission
In several Colorado counties, cars and SUVs must pass an emissions inspection regularly. Boulder, Broomfield, Denver, Douglas, and Jefferson counties are among them. Additionally, residents in Adams, Arapahoe, Larimer, and Weld counties require inspections. The residents of these counties should contact their local DMV office for more information.
Sellers in these areas are not permitted to sell a vehicle without a clean emissions inspection certificate. Even if you live in a county in Colorado that does not require this testing but is adjacent to one that does, you should consider getting an inspection. Otherwise, you'll be severely limiting your number of potential buyers.
Vehicle History Report
Though it is entirely optional, a vehicle history report can boost prospective buyers' confidence by demonstrating that you are being completely transparent. Running a vehicle report on your own can also save time, as many buyers will want one before making a purchase decision. You're one step closer to closing the transaction if you already have a vehicle history report.
In a related vein, many buyers may want to have a safety inspection performed before making a purchase. There is nothing wrong with this; it is standard procedure in private transactions. Typically, the buyer will select their mechanic, whose opinion and expertise they value. As a result, the car buyer is responsible for any inspection costs. If they insist you pay for the inspection, you will certainly find a better deal from another prospective buyer.
Odometer Statement And Bill Of Sale
You'll be ready to close the sale once you've sorted through offers, found a buyer, and agreed on a price. Begin by having each party fill out the buyer and seller sections of the title. Make sure to print and sign your full names correctly, as this is a legal document that must be completely accurate to be considered valid. It would be best if you also double-checked the listed odometer reading at this time.
Colorado also requires that cars sold privately include an odometer statement. This statement is not free, but it can be purchased for a small fee from several online sources.
Finally, both parties must complete and sign a bill of sale. The following information must be included.
- Both the buyer's and seller's legal first and last names
- The vehicle identification number (VIN)
- The purchase price
- The date of the sale
Print two copies and complete one for the buyer and one for the seller. Remember to remove the license plates from the car as a final step in the transaction. These are kept by the seller and not by the vehicle. If you're buying a new car, you can transfer these tags, but if you're not replacing your old car, you must turn your plates into the DMV.
Reporting The Transaction
After you've completed the sale, you have 5 days to notify the DMV of the transfer of ownership. Report the transfer online by selecting the Report Release of Liability option, or visit your nearest DMV office. Prepare your license number and the vehicle identification number (VIN) or verification code from your registration receipt.
In Colorado, reporting the sale is optional, but it's a simple way to protect yourself from liability for the buyer's actions after they drive away. If the new owner commits a violation while driving your old vehicle, failing to report the transfer of ownership may result in an unexpected increase in your insurance rate.
For information on vehicle release of liability, click on the link below:
