There are certain legal requirements and regulations you need to be aware of when deciding to sell your junk car in Denver. Selling your junk vehicle can be a great way to get rid of an unwanted or unneeded vehicle and possibly make money at the same time. Whether you are trying to sell a car that no longer runs, is in need of extensive repairs, or was simply traded in during a car purchase, knowing the rules and regulations in the city can help make the process go more smoothly. In this article, we’ll discuss the legal requirements, regulations, and paperwork involved in selling your junk vehicle in Denver.
It’s important to first define your vehicle as “junk” or “scrap” in order to determine what steps and paperwork you will need to complete. If your vehicle meets the criteria of being classified as “junk” or “scrap,” it’s legally defined as an “abandoned vehicle.” This is an important distinction, as there are different requirements for abandoned vehicles than regular cars. According to the Colorado Motor Vehicle Law, an abandoned vehicle can be defined as “any motor vehicle, trailer or semi-trailer that has been discarded, abandoned, or otherwise left unattended for more than seven days upon any public or private property without the permission of the person with legal possession of the property.”
Once you have determined that your vehicle meets the definition of an abandoned vehicle, you need to register the vehicle with the City of Denver’s Abandoned Vehicle Program. This is a free service provided by the city that allows the seller to register their vehicle as abandoned. This registration will provide the seller with a way to evidence their decision to abandon the car, and it also serves to notify the state that the car is no longer registered or in use.
When transferring ownership of a car in the state of Colorado, you are required to pay a use tax. The amount due is based on the fair market value of the car, which varies depending on the condition and age of the car. Therefore, any outstanding taxes due on the vehicle must be paid before you can legally transfer the title to a new owner.
In Colorado, it is illegal to transfer the title of a vehicle without completing and providing the appropriate title paperwork. This includes both a signed bill of sale and a properly completed title transfer. To complete the title transfer, you must complete and sign an application for a certificate of title, which will be submitted to the state along with the appropriate fees.
In addition to transferring the title, you will also need to file an Affidavit of Transfer of Ownership with the county in which the vehicle was sold. This form must be completed and notarized, and it must include the seller’s notarized signature, the buyer’s name and address, and an odometer disclosure statement. Once completed, the form must be filed with the county within 45 days to avoid penalties or fines.
Once the title and affidavit are filed, the seller must also notify the Colorado Department of Motor Vehicles of the transfer. This involves either filling out a transfer of ownership online or sending a completed MVR-18 form to the DMV. The MVR-18 form must include the seller’s name, address, and vehicle identification number (VIN).
In order for the seller to dispose of their abandoned vehicle, a towing or junkyard company must be hired to pick up and dispose of the vehicle. In most cases, this company will also provide paperwork that will allow the seller to back up their decision to sell the vehicle. Be sure to keep all of the paperwork related to hiring the tow company in a safe place in case you ever need to provide evidence of the sale.
Once the tow company has arrived, the seller should ensure that the vehicle is loaded onto the truck or trailer and that the vehicle’s title remains with the seller. This is to ensure that the buyer or junkyard company cannot come back and ask for money or paperwork at a later date.
To ensure that the sale is complete and final, it is important that the seller request payment in full upon delivery of the vehicle, if applicable. The seller should also request a receipt and proof of payment, if possible. These documents are important for tax and insurance records.
Before a vehicle is sold, it is important to ensure the safety of both the seller and the buyer. If a tow company needs to pick up the vehicle, make sure that the company is insured, licensed, and bonded. This will protect both parties from any potential liability or property damage.
Selling a junk vehicle can be a great way to get rid of an unwanted or unneeded car and potentially make money at the same time. However, it is important to understand the legal requirements and regulations involved in the process, including determining the vehicle as “junk,” registering the vehicle, paying taxes, filing paperwork, and providing proof of payment. Taking the time to understand the legal process can help make the experience of selling your junk vehicle in Denver easier and more successful.