Regardless of whether you are buying or selling a vehicle in Colorado, there are things you need to think of and you need to do your homework well. In this article, you will get more information about new and used car buying or selling regulations in Colorado.
Selling Your Car
Once you find a buyer who is willing to offer a good deal for your vehicle, there are certain documents needed by the State of Colorado in order to transfer the vehicle ownership to the buyer. These documents include:
- Certificate of Title obtained in Colorado. This document should contain your name and signature. If there are multiple owners listed on the title, all parties must sign off on the form. You will need to fill in the requested information on the back of the title, print your name, sign it and write the name of the buyer and their address.
- You also need a valid odometer reading if your vehicle is 10 years old or less.
- If the buyer lives in emission prone areas, you should provide them with a valid emission inspection certificate.
- You also need to give the seller a copy of the bill of sale. A typical bill of sale should contain the name of the buyer, purchase price, vehicle description and the vehicle identification number (VIN).
Note: You have to remove the license plates from the vehicle that you are selling. The buyer will then obtain a temporary permit in order to legally drive the vehicle before registering and titling it in their name.
Buying From a Private Party
When you purchase a vehicle from a dealer, they will handle all the required paperwork on your behalf. But if when you are dealing with a private party, you will need to obtain the required paperwork from the seller in order to register and title the vehicle in your name. The seller must:
- Provide you with the Certificate of Title listing the printed name, address and signature of the seller in the “seller’s box.” The certificate of the title must also list your name and address in the "buyer's box." If you are purchasing used car or truck, the title must contain notarized signatures. If you want to skin the signature notarization process, you can submit the Statement of Transfer form.
- The seller must also provide you will a bill of sale listing the vehicle’s purchase price agreed on, purchase date, buyer’s name, vehicle description and the vehicle identification number (VIN). If this document doesn’t have a signed perjury statement, it needs to be notarized.
- The seller also needs to provide you with the vehicle’s odometer reading if the car is 10 years old or less. These reading can be written on the back of the title or on a separate paper.
- If you live in an emission prone area, you need to obtain emissions inspection certificate from the seller.
Buying or Selling a Vehicle without a Title
In Arkansas, you cannot sell or buy a vehicle without a title. It is against the law to do so. The title is an important document that proves vehicle ownership. You also need the title to register and title the vehicle in your name. There are exceptions in Arkansas, but only when purchasing a vehicle from Canada. In this case, you need registration paperwork which serves as proof of ownership. The other exception is when you receive a certificate or origin when you purchase a vehicle from a dealer. In this case, you can use this certificate to register the vehicle waiting the title processing. If you are the seller and the title to your vehicle is missing or lost, you have to apply for a duplicate copy at the registration office in your county. If you want to sell a vehicle without a title certificate and you can’t apply for a duplicate copy because you never had one at first, you need to first establish vehicle ownership through a surety bond. The registration certificate is not required when purchasing a vehicle.
Buying From a Dealer
The current statistics show that the average price of a new car in Colorado is between $20,000 to $25,000 ranges. Monster SUVs and sporty imports come with considerably higher price, while compact and domestic vehicle models come with a cheaper price. This statistic shows that the overall price of a new car is lower than that of purchasing a house. Buying a new car from a dealership can also cause some anxieties and panic. The key to making an informed decision is to conduct your homework well. Research on car classified sites, ask car experts and read several buyers guide before making a purchase.
Guides and Other Resources
There is plenty of reliable information out there that you can use to make informed decisions before making a purchase. You can read magazines about cars, buying guides, search on the internet or listen to experts to equip yourself with enough information about negotiation and financing stages. You can also get reliable information on car buying process from the online Federal Trade Commission’s informative guide. You can also visit the Colorado DMV website to read comprehensive list of important car buying tips. These tips include but not limited to: when buying a car from a private party or dealer. The DMV also has a section with information on car leasing.