Bill of Sale for Selling a Car: What It Is and What It Should Include
When you sell a car, a bill of sale is the written record of that transaction. It documents who sold what, to whom, for how much, and when. Think of it as the receipt for a private vehicle sale — proof that ownership changed hands under agreed-upon terms.
It's not the same as a title transfer, and it doesn't replace the title. But in many situations, it's just as important.
What a Bill of Sale Actually Does
A bill of sale serves two parties at once. For the seller, it establishes that you handed over the vehicle and received payment — protecting you if the buyer gets a ticket, causes an accident, or racks up tolls after the sale. For the buyer, it's a record of the agreed purchase price, which matters for calculating sales tax when registering the vehicle.
In some states, a bill of sale is required by law to complete a title transfer or register the vehicle. In others, it's optional but strongly recommended. Either way, having one is almost always in both parties' interest.
What a Bill of Sale Typically Includes
Most bills of sale for a private vehicle sale cover the same core information:
| Field | What to Include |
|---|---|
| Vehicle description | Year, make, model, body style |
| VIN | 17-character Vehicle Identification Number |
| Odometer reading | Mileage at time of sale |
| Sale price | Exact dollar amount (or "gift" if applicable) |
| Seller information | Full legal name and address |
| Buyer information | Full legal name and address |
| Date of sale | Month, day, year |
| Signatures | Both parties; some states require notarization |
| Payment method | Cash, certified check, etc. (optional but useful) |
| "As-is" language | If the vehicle is sold without warranty |
Some states provide an official bill of sale form through the DMV. Others accept any written document as long as it contains the required fields. A few states build bill of sale fields directly into the title certificate itself.
The "As-Is" Clause Matters 📋
Most private vehicle sales are sold as-is, meaning the buyer accepts the vehicle in its current condition with no guarantees from the seller. Including clear as-is language in your bill of sale helps establish that the buyer knew what they were getting.
This won't protect a seller from fraud — if you knowingly concealed a serious defect, as-is language doesn't insulate you from liability. But for an honest transaction where the buyer accepts the vehicle's condition, it's an important declaration to include.
How State Requirements Vary
This is where sellers and buyers often get tripped up. There is no single national standard for what a bill of sale must include, whether it needs to be notarized, or whether the state DMV requires it as part of the title transfer process.
A few things that differ by state:
- Notarization: Some states require one or both parties to sign in front of a notary. Others don't require it at all.
- Odometer disclosure: Federal law requires odometer disclosure for most vehicles under 10 years old. Some states have their own additional requirements.
- Official forms: Certain states require you to use their DMV-issued bill of sale form — not just any document.
- Sales tax calculation: Many states use the bill of sale price to determine the sales tax the buyer owes at registration. If the stated price seems unusually low, some states apply a minimum taxable value instead.
- Submission requirements: Some states want a copy of the bill of sale filed with the DMV. Others treat it as a private document you keep for your records.
Gifting a Vehicle vs. Selling One
If you're giving a car to a family member rather than selling it, the bill of sale still matters — but the "price" field will read $0 or "gift." Some states have specific gift transfer processes with their own paperwork. The bill of sale documents the nature of the transaction either way.
How Many Copies to Make
Both the seller and buyer should keep a signed copy. If your state requires one to be filed with the DMV, make an additional copy for that. Some people keep a digital photo or scan as a backup.
Store your copy somewhere accessible — if the buyer doesn't transfer the title promptly and the car gets impounded or ticketed, your bill of sale is part of how you demonstrate you no longer own the vehicle. 🗂️
What a Bill of Sale Can't Do
A bill of sale does not transfer legal ownership of the vehicle. That's the title's job. The seller must sign over the title, and the buyer must complete the title transfer with their state DMV to become the registered owner.
A bill of sale also doesn't cancel your registration, end your insurance obligation, or remove your name from the title automatically. Those are separate steps that vary by state.
The Variables That Shape Your Situation
How a bill of sale fits into your transaction depends on:
- Your state's specific DMV requirements — including whether it mandates an official form or notarization
- Whether the vehicle is a gift or a sale
- The age and type of vehicle — federal odometer rules, for instance, don't apply to all vehicles equally
- Whether a lien is involved — a vehicle with an outstanding loan has additional paperwork requirements
- How the title itself is structured — some titles include fields that overlap with what a bill of sale covers
The document itself is straightforward. What varies is exactly how it fits into the title transfer and registration process in your state — and what additional steps are required alongside it. 🔑
