Colorado Vehicle Bill of Sale: Free Template, DR 2173 Rules and the 60-Day Deadline

What is a Colorado vehicle bill of sale, and what is Form DR 2173?

A Colorado vehicle bill of sale is the written record of who sold which vehicle to whom, on what date and at what time, for how much, with the odometer reading disclosed. Form DR 2173, the Secure Motor Vehicle Bill of Sale, is the state's official version, and it is a secure paper form sold through licensed vendors rather than a download.

Because DR 2173 has to be bought, the DMV's private-sale page tells sellers to provide "a Bill of Sale (Form DR 2173 or a written equivalent)" that includes the purchase price, date, VIN, year, make, model and both parties' names and signatures. This template is written to that standard and adds the two things a Colorado buyer needs later: the time of sale, which the 36-hour drive-home rule requires, and the odometer disclosure, which may be made on the title or on the DR 2173.

Do not confuse DR 2173 with Form DR 2116, the "Bill of Sale for Purged Colorado Title"; that one exists only for vehicles whose Colorado title record has been deleted.

Is a bill of sale required for a private car sale in Colorado?

Ownership transfers when the seller endorses the Colorado Certificate of Title, but the DMV treats a bill of sale as part of the standard private-sale package: its seller checklist says to provide one even when the title is signed, the buyer cannot drive the car home without plates unless a signed bill of sale is in the car, and the date of sale and purchase price must be on the back of the title unless a separate bill of sale is included.

• Title endorsement is the transfer. The seller signs and prints their name in the "Seller" section exactly as it appears on the front of the title; every owner listed on the front must sign.
• Bill of sale is the proof. It records the price the county taxes, the date the 60-day clock starts from, and the time of sale for the 36-hour rule.
• Purged record. If the state has no record of the title, the sale runs on Form DR 2116 instead.

Does a Colorado bill of sale need to be notarized?

No. The DMV's requirements for a private-sale bill of sale are the signatures of both the buyer and the seller; there is no notary or witness requirement.

What Colorado is strict about is the name: the seller's signature on the title must match the name printed on the front of the title exactly, and the buyer's printed name must match their secure and verifiable identification (Form DR 2841 lists the accepted documents), because that is how the new title will read. Voluntary notarization is harmless and some buyers ask for it when the seller lives out of state.

What has to be on a Colorado vehicle bill of sale?

At minimum the DMV list: purchase price, date of sale, VIN, year, make, model, and the names and signatures of both parties. Add the time of sale, because the 36-hour rule requires it, and the odometer disclosure.

The odometer rule: for model year 2011 and newer vehicles the seller must disclose the mileage on every transfer for the first 20 years of the vehicle's life, choosing "actual mileage", "not actual mileage" or "mileage in excess of mechanical limits", and the buyer must check the reading against the dashboard before signing. The DMV notes that an inaccurate disclosure can reduce the vehicle's value and cause problems later. If the title carries a brand (salvage, rebuilt, flood and so on), seller and buyer also complete Form DR 2710, Branded Title Disclosure Statement.

Bill of sale versus title: which one transfers the car?

The title. A Colorado vehicle changes hands when the seller endorses the Certificate of Title and the buyer takes it, with the bill of sale, to the county motor vehicle office and applies for a new title in their name.

Before paying, the DMV's buyer checklist says to confirm that the VIN on the title matches the VIN plate on the vehicle, to check the vehicle's history through the National Motor Vehicle Title Information System, and to confirm with the National Insurance Crime Bureau that it has not been declared a total loss. A lien listed on the title has to be released before the county will issue a clean title, so ask for the lien release at the sale. A vehicle last titled in another state also needs a VIN verification on Form DR 2698, done by a licensed dealer, a law-enforcement officer or an emissions inspection station.

What taxes and fees does the buyer pay, and does the bill-of-sale price matter?

In Colorado the written price matters: the county motor vehicle office collects state and local sales or use tax on the purchase price when the buyer titles the vehicle. On top of that come the $7.20 title fee, registration fees and the annual Specific Ownership Tax.

• Sales or use tax at the county office, on the price shown on the title or bill of sale; the state rate is 2.9%, with county, city and special-district taxes added by where the buyer lives.
• Title fee: $7.20 for a transfer of ownership.
• Specific Ownership Tax: Colorado's annual vehicle tax, paid with registration and based on the vehicle's taxable value and age.
• Registration fees vary by weight, vehicle type and county.

Because tax is computed from the declared price, understating it on the bill of sale is tax fraud, not a discount.

What are the deadlines after a private car sale in Colorado, and what does it cost to miss them?

The buyer has 60 days from the purchase date to title and register the vehicle; after that the county charges a late fee of $25 per month or part of a month, up to $100. The seller has 5 days to report the sale on myDMV.

• Buyer, 60 days. Title and register at the county motor vehicle office (C.R.S. 42-3-103(1)(a)). Late fee $25 per month or portion, capped at $100; $10 a month for trailers.
• Buyer, first 36 hours. You may drive home or to a registration office without plates, with the signed bill of sale and proof of insurance in the car. Insurance must be in place before you drive at all.
• Seller, 5 days. File "Report Release of Liability" on myDMV so tolls and tickets stop landing on you.
• Emissions. In Boulder, Broomfield, Denver, Douglas and Jefferson counties and the program areas of Adams, Arapahoe, Larimer and Weld, a gasoline vehicle more than seven model years old needs a passing test to register. It is the seller's job to hand over a fresh certificate or a test voucher at the sale; any used vehicle offered for sale needs a new inspection even if the old one has not expired. A test costs $35 and is valid for two years for 1982-and-newer vehicles.

What are the most common mistakes on a Colorado bill of sale?

A seller signature that does not match the name on the title, plates left on the car, a bill of sale without the time of sale, and a buyer in Denver who drives away without the emissions certificate.

• Signature mismatch. The seller must sign exactly as printed on the front of the title, and every listed owner must sign. A wrong or missing signature means a new title before the sale can close.
• Plates on the car. Plates belong to the owner. Leaving them on the vehicle leaves the seller liable for the buyer's tolls and fines.
• No time of sale. The 36-hour drive-home allowance runs from the time on the bill of sale; without it the buyer has no legal way to move the car.
• No emissions certificate. In the testing counties the seller owes the buyer a new passing certificate; the county will not register without it.
• Release of liability skipped. Five days on myDMV, or the seller stays on the record.
• Out-of-state title without VIN verification. Form DR 2698 is required before the county will title it.