Colorado has always required the dealer or wholesaler to disclose known damage (if your service department has knowledge, the dealer is responsible to disclose!).  This disclosure must be given even in wholesale or auction transactions.  Material Particulars means those details concerning a vehicle for sale that are essential or necessary for a "reasonable prospective buyer" to know prior to making a decision to buy a vehicle (see Section D below).  The disclosure must be given "prior to sale", so make sure the written disclosure is read and signed by the Buyer and Seller prior to the signing of the Purchase Agreement or Buyers Order.  


Along with a written Damage Disclosure, we recommend always having trade-in customers complete a Trade-in Affidavit, and make sure to disclose any material particulars from that affidavit to the new Buyer.  


Check for unrepaired recalls and disclose those, in writing, to the Buyer.


Regulation 12-6-118(3)(i)


A. Definitions for Purposes of this Regulation


  1. "Contract" means any written agreement, such as a purchase agreement, buyer order or invoice, between a Dealer and a Buyer for the sale of a motor vehicle, excluding the Retail Installment Sales Contract (RISC).
  2. "Dealer" means a motor vehicle dealer, used motor vehicle dealer, wholesaler, wholesaler motor vehicle auction dealer, motor vehicle auctioneer, or a representative of the dealership.
  3. "Seller" means Dealer.
  4. "Buyer" means a retail consumer or a Dealer.
  5. "Material Particulars" means those details concerning a vehicle for sale that are essential or necessary for a reasonable prospective Buyer to known prior to making the decision to buy or not to buy a vehicle.

 B. Disclosure Process

Prior to the signing of the Contract, the Seller shall produce a written document disclosing all known Material Particulars.  Both he Seller and Buyer must sign the document.  The document is deemed to be part of the Contract.  A signed copy of the Contract and the disclosure document shall be provided to the Buyer at the time of sale.  The Seller shall retain a copy of the Contract and the disclosure document.


 C.  "As Is" Statement
 A statement by the seller to the Buyer that a vehicle is sold "as-is" does not relieve the Seller of the disclosure obligations imposed by his regulation, nor does it relieve the Seller of any other disclosure obligations otherwise required by state or federal law.  An "as-is" statement solely disclaims implied warranties under provisions of the "Colorado Uniform Commercial Code," Title 4, C.R.S.

D.   Non-Exclusive List of "Material Particulars" 
 Material Particulars include but are not limited to the following:
  1. The motor vehicle is a "Salvage Vehicle" as that term is defined in the Colorado "Certficate of Title Act," Part 1 of Article 6, Title 42, C.R.S.
  2. The motor vehicle has sustained damage, whether repaired or not repaired, of the following type:
    1. Frame or unibody damage o any grade or type; or
    2. Flood, fire or hail damage; or
    3. Accident or collision damage
  3. The motor vehicle has been modified in a way tat impacts warranty coverage.
  4. The motor vehicle had been declared a "total loss" by an insurance company.
  5. The motor vehicle had been stolen.
  6. The motor vehicle had been used as a police vehicle, vehicle for hire, rental vehicle, or a loaner or courtesy vehicle, if such use is clearly ascertainable from a title brand, from information obtained from a prior owner, from a Vehicle Identification Number (VIN), from a State-issued Identification Number, or from any other source.
  7. The motor vehicle had been put to a use or had been altered in such a way that a reasonable person would consider unusual or extraordinary, such as use as a racing vehicle.

 E.  Matters Generally Not Considered "Material Particulars"
This list is not intended to be all-inclusive.  Material Particulars do not generally include the items on the following list:
  1. Normal wear and tear.
  2. Completed or prior mechanical repair.
  3. General maintenance.
  4. Repair or replacement of tires, wheels, glass, handlebars, moldings, radios, in-dash audio equipment, or the like, provided that the repair or replacement was completed in a manner reasonable comparable to manufacturer's specifications and provided that any repaired or replaced item is functioning at the time of sale in the manner that a reasonable person would expect.
  5. Touch-up paint for minor scratches, dents, or dings.
  6. Completed recall repair, provided the repair was done by a dealer authorized by the manufacturer to perform such repairs.