CO Code § 42-6-113 (2021)
2021 Colorado Code|Title 42 - Vehicles and Traffic|Article 6 - Certificates of Title - Used Motor Vehicle Sales|Part 1 - Certificates of Title|§ 42-6-113. New Vehicles - Bill of Sale - Certificate of Title - Rental Businesses - Rules

  Upon the sale or transfer by a dealer of a new motor or off-highway vehicle, the dealer shall, upon delivery, make, execute, and deliver to the purchaser or transferee a sufficient bill of sale and the manufacturer's certificate of origin.    The bill of sale must:   Be affirmed by a statement signed by the dealer, containing or accompanied by a written declaration that it is made under the penalties of perjury in the second degree, as defined in section 18-8-503, C.R.S.;    Be in such form as the director may require; and    Contain, in addition to other information that the director may by rule require, the make and model of the motor or off-highway vehicle, the identification number placed upon the vehicle by the manufacturer for identification purposes, the manufacturer's suggested retail price, and the date of the sale or transfer, together with a description of any mortgage or lien on the vehicle that secures any part of the purchase price.       Upon presentation of the bill of sale and the manufacturer's certificate of origin, the director or an authorized agent shall file a new certificate of title for the vehicle described in the bill of sale. A dealer shall transfer a new motor or off-highway vehicle used by a dealer for demonstration in accordance with this section.    Notwithstanding subsection (3) of this section, the department may, upon presentation of a manufacturer's invoice, issue a business that rents motor vehicles or special mobile machinery a certificate of title for a new motor vehicle or special mobile machinery if the business submits a signed affidavit or a title application attesting that the motor vehicle or special mobile machinery is new and has not been issued a certificate of title and that the business is entitled to be issued a certificate of title for the motor vehicle or special mobile machinery. Upon request of the department, the business shall make available a scanned image of the front of the manufacturer's certificate of origin for up to one percent of the registered vehicles of the business for any given month.     History. Source: L. 94: Entire title amended with relocations, p. 2454, § 1, effective January 1, 1995. L. 2000: Entire section amended, p. 1659, § 7, effective July 1, 2001. L. 2005: Entire section amended, p. 813, § 11, effective August 8. L. 2013: Entire section amended, (SB 13-280), ch. 407, p. 2382, § 10, effective June 5. L. 2018: (4) added, (HB 18-1299), ch. 297, p. 1813, § 10, effective July 1, 2019.    Editor's note:   This section is similar to former § 42-6-111 as it existed prior to 1994, and the former § 42-6-113 was relocated to § 42-6-115 .   ANNOTATION   Annotator's note. Since § 42-6-113 is similar to § 42-6-111 as it existed prior to the 1994 amending of title 42 as enacted by SB 94-1, relevant cases construing that provision have been included with the annotations to this section.   First purchaser protected by bond against dealer's prior mortgage. Certification begins with the first retail purchaser, based upon bill of sale from the dealer. The first purchaser is protected in theory against a dealer's prior mortgage by means of a bond required to be filed by the dealer for the purchaser's protection. First Nat'l Bank v. Chuck Lowen, Inc., 128 Colo. 104 , 261 P.2d 158.   Whereas purchaser from other than dealer takes subject to valid prior mortgages. The purchaser of a motor vehicle other than from a dealer as defined in § 42-6-102 without delivery of certificate of title takes subject to valid prior mortgages. First Nat'l Bank v. Chuck Lowen, Inc., 128 Colo. 104 , 261 P.2d 158 (1953).   Title passes to purchaser of new car without recordation of bill of sale. This section does not require the purchaser of a new automobile from a dealer to record his dealer's bill of sale as a condition precedent to the passing of title to him. Colo. State Bank v. Riede, 92 Colo. 362 , 20 P.2d 1010 (1933).   Title may not be defeated by dealer's chattel mortgage. Such purchaser who receives a bill of sale and possession of the car, acquires complete title which cannot be defeated by the giving of a chattel mortgage by the dealer to a third party between the time of the execution of the bill of sale and the securing of a certificate of title by the purchaser. Colo. State Bank v. Riede, 92 Colo. 362 , 20 P.2d 1010 (1933).   Possession of automobile is evidence of ownership. See South Denver Bank v. Guardian Trust Co., 86 Colo. 121 , 278 P. 590 (1929).   Bill of sale is evidence that the car was acquired in due course of law. Irvine v. Murphy, 77 Colo. 285 , 236 P. 1000 (1925).