If you plan on buying a vehicle outside of Colorado, you’ll need to register the car in Colorado and pay the Colorado sales tax. You must also turn in the old title to get one from Colorado.
As with any vehicle purchase, you’ll have some paperwork to complete. However, this process can be a little more complicated if you buy a car outside Colorado. It helps to know what to expect ahead of time.
This is where Jerry
, the trustworthy insurance comparison app
, can give you the information you need. We’ll review the process of switching over the registration and title of your new vehicle to Colorado and the kind of paperwork you can expect. And while we're at it, we can give you information on how to save on those insurance premiums for your Colorado insurance costs
. How to buy a car out of state as a Colorado resident
If you purchase a vehicle out of state, you’ll need to complete some paperwork to register your vehicle with your home state of Colorado. Let’s look at everything you need to do to set up your new ride.
Be aware that you’ll have paperwork to complete, plus you’ll need to pay fees, including state sales tax. You have to register your vehicle within 60 days of the purchase. You want to have the right paperwork before making a trip to the DMV. Depending on whether you purchased your car from a dealer or an independent seller, you might be able to get a head start on the forms.
You’ll need to have multiple items ready when you register your out-of-state car:
Out-of-state registration
Vehicle Identification Number
Inspection (VIN). This inspection can be done by a Colorado-licensed dealer or emission station, as well as a Colorado law enforcement officerA bill of sale for sales tax purposes
A way to pay the registration and title fees (the amount is based on factors such as the weight and age of the vehicle)
Record of the loan agreement if the vehicle has a lien
Manufacturer's Statement of Origin (if being titled for the first time)
Proof of Colorado Vehicle Emissions (if gasoline or diesel-powered)
You’ll have to go to your local DMV to complete the process. Some steps, such as getting an emissions inspection, should be completed ahead of time—just be sure you keep track of the inspection paperwork!
Once everything is completed, you will get your title in four to six weeks. Be aware that the title is sent to the lienholder if the vehicle was purchased with a loan.
Key Takeaway: Keep track of all the paperwork you get when you buy your vehicle out of state because you’ll need it for switching everything over to Colorado.
How to buy a car in Colorado if you live out of state
Be aware that Colorado expects you to check on your vehicle's legal status and history before you make the purchase. It’s up to the buyer to look up the car in several databases:
Checking on the car’s status is especially important if you buy it from an individual, but you can also use these tools for a dealership.
Once you double-check the status of your future vehicle, you need to get a temporary permit with the local DMV before you drive it home—the seller is required to remove the original plates, so you won’t have access to the old plates once the car is handed over to you. If it’s from a dealership, they should provide you with a temporary permit.
You need to get some paperwork from the seller as well:
The original Colorado Certificate of Title
Emissions inspection certificate—for buyers who live in an emissions location
Bill of sale, which should include the vehicle’s year, make, VIN, time/date of purchase, signatures from buyer and seller
An odometer disclosure reading and indicator information on the Certificate of Title or DR2173 Motor Vehicle Bill of Sale form
Rebuilt from Salvage Disclosure if applicable
You need to register the vehicle with your own state using the paperwork provided by the seller or dealership. Fortunately, Colorado won’t require you to pay sales tax on the vehicle as long as you use the car outside of Colorado. However, your state will probably add its own sales tax to the fees when you switch over the registration and title to that state.
What if I don’t have a physical title?
If you want a Colorado title, you need to surrender the previous state’s title, so you need a physical copy to transfer everything over. Most states require the seller to give the buyer the original title as part of the sale, but if you lose the document or did not get one, you’ll have to order a physical copy from that state’s DMV.
In Colorado, the title is sent to the lienholder, which can complicate things when you need a copy of the title. However, you can contact the lienholder for help if you need a title copy. You can also get a temporary registration that is good for up to 60 days from the DMV.
MORE: How to Get a Temporary License Plate in Colorado
Tips for buying a vehicle out of state
There are plenty of reasons to buy a car from out-of-state, but considering what a significant investment it can be, you want to be sure to do a couple of things:
Check the vehicle history report, especially if buying a used car. Sites like CARFAX
and the National Motor Vehicle Title Information System
can help with the process. Check to make sure the vehicle wasn’t in an accident or declared a loss before you buy it. Don’t forget the inspections. Colorado requires several inspections, including one for emissions
and the Vehicle Identification Number
Inspection (VIN). You are responsible for getting the inspections completed. Remember the sales tax—Colorado expects you to pay sales tax on the new vehicle, so keep the bill of sales on hand since you will need it for this purpose. If the other state had you pay sales tax, you might be able to get a credit toward the Colorado tax.
Make sure you have insurance ready to go. You are legally required to have insurance, so have the Colorado state minimum requirements
at least.
How to save on car insurance in Colorado
Let’s face it, after doing all that work to find your new car and get it registered, you probably don’t want to deal with the hassle of making sure you aren’t overpaying on your Colorado vehicle insurance
. Fortunately, Jerry’s super app can help find the best option for your needs, whether you want minimum coverage or to go all out. The savings keep coming even after Jerry
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