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Colorado Auction Failure to Disclose Salvage Conditions of Vehicle


1993  Nissan hardbody truckThis is a story of deception and integrity. I recently had an experience that left me feeling both frustrated and naive, after purchasing an auction car at a local Colorado auction in Longmont. 


I had been in the market for an older model truck for quite some time. When I exited the United States Army Military Police Corps I had ventured off to start a car flipping business. With that, got in contact with a local auntioneer that deals with government auctions in the Denver Metro area and purchased several vehicles.

The car in question was a late-model Nissan hardbody truck. It was running, lifted, and had simple electronics. The suspension was not great however, It was ideal  for customizing. After setting my mind on it I applied to start the online auction bidding and won!


Excited about my new purchase, I took the car to a mechanic for a thorough inspection before registering it. It was at this point that I was informed that the truck may have been significantly damaged at some point in its history. The mechanic pointed out signs of previous repair work that had been done poorly, and warned me about potential future issues with the truck.

I attempted to register it and gain the title. However, it was rejected. At the time it was post pademic so getting access to DMV in person was a challenge. With that, I left that part on the backburner as I had determined I would attempt to make repairs myself.

Two years later, due to health reasons I had to reduce my vehcle inventory and the truck was up for sale. With that, I made a sale on the vehicle with the paperwork I had from the auction company. The new owner tried getting the title, however it was rejected because he was told it was a salvaged vehicle from another state. Unfortuately, by law, I had to return the money to the purchaser and take back the truck (very costly).

Next I went to the DMV and the local county deputy office to get a verification of the truck history. I was shocked and disheartened by this revelation, as the auction had not disclosed the salvage title in the vehicle's listing. In fact, they wrote "No Records Found". I felt like I had been duped into purchasing a car that was not what it appeared to be, and I was now faced with the dilemma of what to do with it.


After doing some research, I learned that in Colorado, sellers are legally required to disclose a salvage title if the car is being sold by a dealership (See Lemon Law).

The deputy agreed on the legalities. The DMV created a letter of rejection pointing out the discrepencies and recommended that I reach out to the auctioneer to express my concerns and ask for a refund. I did just that, however they are non-resposive at taking the car back or any solutions (ongoing dispute). I felt like I had hit a dead end, and was left with a truck that I would have not bidded on had I known it was a salvage vehicle.

This experience has been a valuable lesson for me, and has taught me the importance of due diligence when making a major purchase. I hope that by sharing my story, others can learn from my mistakes and avoid similar situations in the future. It is always better to be overcautious than to end up in a situation like mine, regretting a purchase that could have been easily avoided with a little more research.

If you bought a vehicle at an auction in Colorado that was not disclosed as a salvage vehicle, this means the seller violated state law and you may have legal options to pursue depending on the specifics of the situation; you should contact the Colorado Department of Revenue's Motor Vehicle division and consult with a lawyer to understand your rights and next steps. 

Key points to consider:

Colorado law requires disclosure:In Colorado, sellers are required to disclose if a vehicle has a salvage title, meaning it was previously considered a total loss due to significant damage and needs to be rebuilt before being driven legally. 
"Rebuilt from Salvage" title:If a salvage vehicle is repaired and deemed roadworthy, the title will be marked as "Rebuilt from Salvage" which must be disclosed to any future buyers. 
• What to do next:
Check the title: Review the car title carefully to see if it is marked as "salvage" or "rebuilt from salvage". 
Contact the seller: Try to reach out to the seller to discuss the issue and see if they are willing to rectify the situation, potentially by refunding your purchase or providing additional compensation. 
Report to the DMV: If the seller does not cooperate, file a complaint with the Colorado Department of Revenue's Motor Vehicle division.
Consult a lawyer: Seek legal advice from an attorney specializing in consumer law to understand your options for recovering damages or taking further action.
  • California Vehicle Code Section 11515; it mandates that a seller must inform the buyer if a vehicle has been declared a total loss or "salvage" before the sale takes place, and failure to do so can result in civil penalties.

Statues & Codes: Universal Citation: CO Rev Stat § 42-6-206 (2023)


The whole ordeal has reminded me the importance of doing thorough research before making a major purchase, especially when it comes to buying a used vehicle.

If you are in the Denver Metro Area you can work with local news organization such as Denver 7 and report consumer issues oe suspected fraud. The investigating team have done outstanding work to help bring relief to victims: DENVER NEWS 7 - https://www.denver7.com/news/investigations

Thank you for reading and be sure to share this with anyone considering purchasing a used vehicle whether from a used auto dealer or an auction house.
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