What should a dealer do with records related to purchases?

Storing records related to purchases securely for several years is essential for compliance with state regulations and to protect the business. In Colorado, dealers are generally required to keep detailed records of their transactions, including purchase records, for a specified period, often around three to five years. This retention period helps ensure that the dealer can verify transactions if questions or disputes arise, and it supports the dealer during audits or inspections by regulatory authorities.

Proper storage not only safeguards the business against potential legal issues but also contributes to maintaining accurate financial and operational records. Keeping these documents secure ensures that sensitive information is protected from unauthorized access or loss. This practice also fosters accountability and transparency within the dealer operations, contributing to a positive reputation within the community and industry.