Just Sold My Car in Colorado — What’s Next? (2026)
Need Colorado bill of sale documentation?
If you haven’t generated a Colorado-compliant bill of sale yet, do it now — your proof-of-sale window closes the moment the buyer leaves.
Start My Colorado Car Bill of Sale →Colorado car sale facts
| Titling agency | Colorado DMV ↗ |
| Title transfer deadline | 60 days from sale |
| Release of liability | File with Colorado DMV within 5 days |
| Buyer’s sales / use tax | 2.9% (Sales tax applies; ownership tax also assessed based on vehicle age) |
| Bill of sale notary | Not required |
| Title fee (buyer pays) | $7 |
| Car identifier | VIN |
Your Colorado car post-sale checklist
- 1
Keep your signed Colorado bill of sale
This is your proof that you sold the car on the sale date. If the buyer gets a ticket, is in an accident, or fails to transfer the title within 60 days from the sale date, the Colorado bill of sale shields you from liability. Keep both your copy and a scan for at least 5 years.
- 2
File a release of liability with Colorado DMV
Most Colorado sellers file this online through Colorado DMV within 5 days of the sale. Filing removes you from records as the registered owner so any post-sale tickets, tolls, or accidents become the buyer's responsibility, not yours. Colorado requires the buyer to title the car within 60 days — your release filing protects you if the buyer misses that deadline.
- 3
Cancel or transfer your auto insurance
Contact your insurer the same day you hand over the keys. Colorado does not require you to maintain insurance on a vehicle you no longer own, but you must not cancel before the sale is complete. If you are replacing the car with another, transfer the policy instead — many insurers offer a short grace period to bind coverage on the new vehicle.
- 4
Remove your license plates
In Colorado, plates go with the seller — not with the car. Remove the plate(s) before the buyer drives or rides away. You can return them to Colorado DMV or transfer them to your next vehicle.
- 5
Verify the 60-day title transfer window
Colorado requires the buyer to retitle the car at Colorado DMV within 60 days of the sale date. If you have not received confirmation that the title has been transferred by day 65, contact Colorado DMV with your bill of sale and release-of-liability filing number to confirm the change of ownership.
- 6
Confirm your Colorado tax obligations (seller's side)
Colorado charges 2.9% sales/use tax on private-party car sales — the buyer pays this at Colorado DMV when titling. Sales tax applies; ownership tax also assessed based on vehicle age. Sellers generally do not owe Colorado sales tax, but if the car sold for more than your original purchase price you may owe federal capital gains tax. Consult a tax advisor.
- 7
Watch for liens or loan payoff confirmation
If you had a loan on the car, confirm the lender received the buyer's payoff and has released the lien on the Colorado title before you deliver the title. Colorado uses DR 2444A as the lien release form — your lender will file this with Colorado DMV to clear the title record.
Colorado lien release procedure
- Obtain Form DR 2444A from the Colorado DMV or the lienholder.
- Lienholder completes and signs DR 2444A releasing the lien.
- Submit DR 2444A with the existing title and title application at your county motor vehicle office.
- Pay the title fee and receive a clean title.
Frequently Asked Questions — Colorado
How long do I have to file a release of liability in Colorado?▾
Colorado sellers should file a release of liability with Colorado DMV within 5 days of the sale. Most Colorado sellers can file this online directly through Colorado DMV. Filing removes you from records as the registered owner so any post-sale tickets, tolls, or accidents fall on the buyer.
What is the Colorado title transfer deadline for a car?▾
Colorado requires the buyer to title the car within 60 days of the sale date. Missing the deadline can trigger late fees and back-dated registration penalties.
Do I owe Colorado sales tax on the car I just sold?▾
Colorado charges 2.9% sales/use tax on private-party car sales. Sales tax applies; ownership tax also assessed based on vehicle age. The buyer typically pays this at Colorado DMV when titling — sellers generally owe no Colorado sales tax on the proceeds. You may owe federal capital gains if you sold for more than the original purchase price.
Does Colorado require a notary on the car bill of sale?▾
No. Colorado does not require notarization for a private car bill of sale. A signed bill of sale with both parties' full names, addresses, signatures, and the date is sufficient for Colorado DMV.
How does the buyer register the car in Colorado?▾
The buyer brings the signed bill of sale and endorsed title to Colorado DMV, pays the title fee (~$7) plus 2.9% sales/use tax, and receives a new Colorado title in their name. Transfer must be completed within 60 days of the sale date.
What if the buyer hasn't transferred the title yet?▾
In most states this is the buyer's responsibility, not yours. Filing a release of liability with your state DMV is the seller-side protection — it removes you from records as the registered owner so any post-sale tickets, accidents, or tolls fall on the buyer regardless of when the title is actually transferred.
Do I need to keep the bill of sale after the sale is complete?▾
Yes — keep your signed bill of sale for at least 5 years. If a parking ticket, toll, or accident occurs after the sale but before the buyer transfers the title, the bill of sale is your proof that the car was sold on the sale date. Store a scan and the original.
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Source: Colorado DMV ↗ · Last verified 2026-05-07