SellCarAdvisor is reader-supported, when you sign up through links on this post, we may receive compensation at no extra cost to you. How We Work.
The bottom line: Colorado plates stay with you when you sell, not the car. Remove them before the buyer drives away.
You sign the title over, file a release of liability within 5 days online, and the buyer handles registration and any emissions testing after that.
Key Takeaways
- Title notarization: Colorado doesn’t require it. Just sign in blue or black ink, exactly as your name appears on the front of the title.
- Missing title: A replacement costs $8.20. Download Form DR 2539A from the Colorado DMV website to apply.
- Buyer deadline: The buyer has 60 days to register the car at their county motor vehicle office. Late fees of $25 per month kick in on day 61.
- License plates: They stay with you, not the car. Remove them before the buyer drives away.
- Release of liability: Colorado recommends you file a notice of sale online within 5 days. It protects you from parking tickets, accidents, or violations after the sale.
- Bill of sale: Legally required when the title has no space to record the sale price. Smart to include for every private sale as protection for both parties.
Compare Instant Offers
Step-by-Step Process for Colorado
Step 1: Prepare Your Colorado Paperwork
Documents you’ll need:
- Vehicle title – Must be in your name and clear of liens
- Valid Colorado driver’s license – Names must match exactly
- Lien release documentation – If you still owe money on the car
If your title is missing:
You’ll need to get a replacement first. Download Form DR 2539A and submit it to your county motor vehicle office in person with your ID and $8.20. Plan for 2 to 6 weeks to receive your new title.
If you still owe money on the car:
If you have a paper title with a lien, your lender either signs the lien release section on the back of the title or provides a separate letter on official letterhead. If your lien is electronic (held in Colorado’s ELT system), the lender releases it electronically once the loan is paid off. You can then request a paper title mailed to you, which takes about 4 to 6 weeks.
If you owe more than the car is worth, you’ll need to pay the difference.
Learn more: How to Sell a Financed Car?
Name matching requirement:
Check your title carefully. The name on your driver’s license must match the name on the title exactly. If you got married or changed your name, bring documentation showing the name change.
Step 2: Prepare Your Car
Clean your car inside and out, gather maintenance records, and run a VIN check to get the best price and build buyer confidence.
Learn more:
Step 3: Price Your Car
Learn more: Best Free Car Valuation Tools
Step 4: Advertise Your Car
Facebook Marketplace works best in Colorado, especially in Denver, Colorado Springs, and Aurora where buyer activity is highest. Cars.com and Autotrader are good for reaching buyers statewide and from neighboring states.
Colorado’s outdoor recreation culture drives strong demand for trucks and AWD vehicles year-round, so 4WD and all-wheel-drive cars tend to fetch more money. Peddle or Wheelzy will buy your old or damaged car directly, and Carvana will give you competitive offers if you have a newer car.
Best for Newer Cars
Buys newer, low-mileage cars
Offers pickup or free drop-off
Competitive trade-in value
Best for Used Cars
Instant offer in 2 minutes
Instant offer and free pickup
Get paid on the spot
Best for Junk Cars
Sell your car in 30 minutes
Easy-to-use
Buys non-running cars
Learn more:
Step 5: Meet with Buyers Safely
Always meet at public places like bank parking lots during daylight hours.
Learn more:
Step 6: Handle Payment and Negotiate
Cash for cars under $5,000, cashier’s check (verify at bank), or meet at buyer’s bank for wire transfer.
Learn more:
Step 7: Complete the Colorado Title Transfer
Find the “Assignment of Title” section on the back of your Colorado title. This is where you’ll record the sale details.
What to fill in:
- Enter the exact odometer reading in whole miles (no tenths or decimals)
- Print the buyer’s full legal name and complete current address
- Write the exact sale price and sale date
- Sign exactly as your name appears on the front of the title
Ink and correction rules: Use only black or blue ink. Any correction, white-out, or cross-out voids the title completely. If you make a mistake, you’ll need to apply for a duplicate title using Form DR 2539A ($8.20) before you can complete the sale.
Multiple owners on the title: If the title shows “AND” between names, all owners must sign. If it shows “OR,” any one owner can sign alone.
After the sale: The buyer has 60 days to register the vehicle at their county motor vehicle office. Late fees of $25 per month start on day 61, up to a $100 maximum.
Step 8: Sign Bill of Sale (Required)
Colorado requires a bill of sale when the title doesn’t include a dedicated space to record the sale price. Most standard Colorado titles do include this space, but if yours doesn’t, a separate bill of sale is legally required.
Colorado doesn’t have an official state bill of sale form. You don’t need a notary. It’s smart to include one for every private sale anyway. Use our free bill of sale generator to create one in minutes.
Learn more: What is Bill of Sale for a Car? (Seller Guide + Templates)
Step 9: Handle Colorado License Plates and Registration
Remove your license plates before the buyer drives away. In Colorado, plates belong to you (the seller), not the car.
You can transfer your plates to another car you own, return them to your county motor vehicle office, or destroy them. Only personalized and specialty plates can be transferred to a new vehicle. Standard Colorado plates from a vehicle you’ve sold cannot move to a different car.
The buyer gets new plates when they register the car at their county motor vehicle office.
Learn more: How to Remove License Plates Safely?
Step 10: Submit the Release of Liability
File online with the Colorado DMV after you sell the car. Colorado recommends you do this within 5 days of the sale date.
This creates a paper trail showing you’re no longer responsible for the vehicle. Without it, you could be held accountable for parking tickets, tolls, or accidents after the sale.
Step 11: Cancel Insurance
Cancel your insurance only after the title transfer is complete.
Learn more: When to Cancel Car Insurance After Selling a Car?
Colorado DMV Resources
State Resources:
- Colorado Division of Motor Vehicles – Buying and Selling
- myDMV Online Portal – Title services and release of liability
- County motor vehicle offices handle most title and registration work in Colorado. Find your local office at dmv.colorado.gov/county-offices.
Phone Support:
- General DMV: (303) 205-5600
Colorado Fees and Costs
| What You Pay? | Cost | When? |
|---|---|---|
| Duplicate title (if needed) | $8.20 | Before sale |
| Lien payoff (if applicable) | Loan balance | Before sale |
| Everything else | $0 | Buyer pays |
Compare Instant Offers
Compare Instant Offers
Frequently Asked Questions
How long does the buyer have to transfer the title after we complete the sale?
The buyer has 60 days from the purchase date to register the vehicle at their county motor vehicle office (CRS 42-3-103).
If they miss that window, late fees of $25 per month start on day 61 and can add up to $100 total.
The buyer can drive the car temporarily using a 60-day temp tag until registration is complete. If the deadline falls on a weekend or holiday, they should visit their county office before that date.
Do I need to get the title notarized when I sign it over in Colorado?
No, Colorado doesn’t require title notarization. The title assignment itself never needs a notary.
When is a bill of sale required in Colorado?
Colorado requires a bill of sale when the title doesn’t have a dedicated space to record the sale price. Most standard Colorado titles do include this space.
Even if it’s not legally required for your specific title, using a bill of sale protects both you and the buyer.
No notarization is needed. Use our free bill of sale generator to create one.
Can I sell my car if I still owe money on it in Colorado?
Yes, but you need to coordinate lien release with your lender.
If your lien is electronic, your lender releases it through Colorado’s ELT system after your loan is paid off, and you can then request a paper title mailed to you.
For paper titles, your lender signs the lien release section directly on the back or provides a signed letter on official letterhead.
If you owe more than the car is worth, you’ll need to pay the difference.
My car was inherited. What additional Colorado forms do I need?
It depends on the size of the estate. For smaller estates that don’t go through probate, Colorado offers an Affidavit of Transfer Without Probate (Form DR 2053A), along with a certified copy of the death certificate.
You’d complete this at your county motor vehicle office.
For larger estates that go through probate, you’ll need letters testamentary or a court order authorizing the transfer.
Both my spouse and I are on the Colorado title. Do we both need to sign?
It depends on how the title reads. If the names are connected with “AND,” both of you must sign the title. If the names are connected with “OR,” either one of you can sign alone to complete the sale.
What if I make a mistake on the Colorado title?
Don’t try to fix it yourself with white-out or cross-outs. Any correction or alteration voids the Colorado title completely.
You’ll need to apply for a duplicate title using Form DR 2539A, pay the $8.20 fee at your county motor vehicle office, and wait 2 to 6 weeks for the new title to arrive before you can complete the sale.
The buyer is from out of state. Does Colorado require anything special?
Your obligations as the seller are the same. You still sign the title correctly, remove your license plates, and file the release of liability within 5 days.
The buyer will register the vehicle in their home state and follow that state’s rules for title transfer and any required inspections.
Do Colorado license plates transfer to the buyer?
No, Colorado license plates stay with you (the seller). Remove them before the buyer drives away.
You can transfer them to another vehicle you own, return them to your county motor vehicle office, or destroy them. Only personalized and specialty plates can move to a new vehicle you own.
Do I need to file a release of liability after selling my car in Colorado?
Yes. Colorado recommends filing the release of liability within 5 days of the sale.
Go to mydmv.colorado.gov, select “Vehicle Services,” then “Report Release of Liability.” It’s free and takes about 5 minutes.
Without it, you could be held responsible for parking tickets, tolls, accidents, or violations that happen after you’ve sold the car. It’s one of the most important steps to protect yourself.
Article Update History
Colorado's DMV rules for private sales haven't changed. The title transfer process, plate rules, release of liability steps, and fees in this guide are current.
Originally posted and shared with our readers.