A bill of sale is a written record that you and the other person sign to prove that a vehicle changed hands, who paid what, and on what date
When you buy or sell a car privately—not through a dealer—a bill of sale is your proof that the transaction happened. It documents the seller's name and address, the buyer's name and address, the vehicle's details (year, make, model, VIN, odometer reading), the sale price, and the date. Both parties sign it. The bill of sale is not the title itself; the title is the government document that proves ownership. But the bill of sale is the paper trail that shows how ownership moved from one person to the next, and it protects both of you if questions come up later.
You need a bill of sale before you can register the vehicle in your name at your state's Department of Motor Vehicles (or equivalent). The DMV uses it to confirm that the person who signed the title over to you actually owned it and sold it to you willingly. Without a bill of sale, you have no documented proof of the transaction, which can create problems if the seller later claims they didn't sell the car, if there's a lien on the vehicle that wasn't disclosed, or if you need to prove when you bought it for insurance or tax purposes.
Key Takeaways
- A bill of sale is a signed document between buyer and seller that records the vehicle details, sale price, and date—it is not the title itself.
- You must have a bill of sale to register a vehicle at your state's DMV; they will not process the title transfer without it.
- The bill of sale protects both buyer and seller by creating a record of who owned the car, when, and for how much.
- Your state's DMV website usually provides a free bill of sale form, or you can use a generic template as long as it includes all required information.
- Both the buyer and seller must sign the bill of sale in front of a witness or notary public, depending on your state's rules.
What information must go on a bill of sale
A bill of sale must include the seller's full name, address, and phone number; the buyer's full name, address, and phone number; the vehicle's year, make, model, color, and Vehicle Identification Number (VIN); the odometer reading at the time of sale; the sale price in dollars; the date of the sale; and the signatures of both buyer and seller. Some states also require the signature of a witness or a notary public. Check your state's DMV website for the exact form they accept—most states provide a free template that you can print and fill out by hand or type.
Do not leave any field blank. If the price is cash and you do not want to write the exact amount, you can write "cash" or "as agreed," but leaving the price field completely empty can cause the DMV to reject the form. The odometer reading is important because it creates a record of the vehicle's mileage at the time of sale; this protects the buyer if the seller later claims the car had lower mileage, and it protects the seller by documenting what the reading actually was.
Where to get a bill of sale form
Your state's DMV website is the best source. Search "[your state] DMV bill of sale" and you will find the official form. read it, print it, and fill it out. Some states call it a "bill of sale," others call it a "sales contract" or "vehicle purchase agreement." The name varies, but the purpose is the same.
If your state does not provide a form, or if you cannot find it, you can use a generic bill of sale template from a legal document website or even write one yourself on plain paper, as long as it includes all the required information. The form does not have to be fancy or printed on special paper. What matters is that it is signed by both parties and contains the vehicle details, sale price, and date. However, using your state's official form is always safer because you know it will be accepted by the DMV without question.
How to fill out and sign the bill of sale
Print the form or write it out clearly by hand. Fill in all the blanks with accurate information. The seller fills in their details and the buyer fills in theirs. Write out the vehicle's VIN exactly as it appears on the title or on the driver's side door jamb. Write the odometer reading as it shows on the dashboard at the moment of sale. Write the sale price as a number (for example, $5,500) and spell it out in words below if the form has a line for that.
Both the buyer and the seller must sign and date the form. Some states require the signatures to be notarized, meaning a notary public must watch you both sign and then add their stamp and signature. Other states allow a witness to sign instead—someone who is present when both parties sign but who is not involved in the sale. Check your state's DMV website to see whether notarization or a witness signature is required. If notarization is required and you skip it, the DMV will reject the form and you will have to start over.
Make at least three copies: one for the seller, one for the buyer, and one to submit to the DMV with the title transfer paperwork. Keep your copy in a safe place. You may need it later for insurance, tax records, or if a dispute arises.
When the seller still owes money on the car
If the vehicle has a lien—meaning the seller still owes money to a bank or lender—the bill of sale must note this. Write something like "Vehicle subject to lien held by [lender name]" or "Lien payoff amount: $[amount]." This tells you, the buyer, that the seller does not yet own the car free and clear, and that the lender has a claim on it.
Do not hand over payment until the lien is satisfied. The seller should contact their lender and arrange to pay off the loan at or before the sale closes. The lender will then release the lien and send the title to the seller, who can then sign it over to you. If the seller cannot pay off the lien before the sale, some buyers and sellers use an escrow service (a neutral third party holds the money until the lien is cleared), but this adds cost and complexity. It is simpler to wait until the lien is paid off and the title is clear before you hand over any money.
What happens after you sign the bill of sale
After both parties have signed, the seller must sign the back of the title (the official government document) and hand it to you. You then take the signed title, the signed bill of sale, and any other documents your state requires (such as a vehicle inspection report or emissions test) to your local DMV office or submit them online if your state allows it. The DMV will process the title transfer, register the vehicle in your name, and issue you a new title.
The seller should keep a copy of the signed bill of sale for their records. If the car is later involved in an accident or crime, or if there is a dispute about when the sale happened, the bill of sale is proof that the seller no longer owned it. The buyer should also keep a copy until the new title arrives in the mail, which usually takes two to four weeks depending on your state.
Common mistakes to avoid
Do not leave the price blank or write "as agreed" if your state's form requires a specific dollar amount. Do not skip the odometer reading. Do not forget to have both parties sign. Do not assume that a handshake or a text message counts as a bill of sale—it does not. The DMV will not process a title transfer without a signed, written bill of sale.
Do not accept a bill of sale that has been altered or crossed out after it was signed unless both parties initial the change. If the seller crosses out the price and writes a new one without your initials, the DMV may question whether you both agreed to the change. Do not buy a car if the seller refuses to provide a bill of sale or if they cannot produce the title. These are red flags that the seller may not actually own the vehicle or that there is a lien or other claim on it that they are hiding.
Frequently Asked Questions
Can I use a bill of sale from the internet instead of my state's form?
Yes, as long as it includes all required information: seller and buyer names and addresses, vehicle details and VIN, odometer reading, sale price, date, and signatures. However, using your state's official form is safer because you know the DMV will accept it without question.
What if the seller will not sign the bill of sale?
Do not buy the car. A seller who refuses to sign a bill of sale is a major warning sign. It suggests they may not own the vehicle, may have a lien they are hiding, or may be trying to avoid a record of the sale. Walk away.
Do I need a notary if my state does not require one?
No, but having the bill of sale notarized is optional extra protection. A notary's stamp proves that both parties were present and signed willingly. It costs $10 to $25 and takes a few minutes, and it can prevent disputes later.
What if I lose the bill of sale after I buy the car?
Once the DMV processes the title transfer and issues you a new title in your name, the bill of sale's main job is done. However, keep a copy for your records in case you need to prove when you bought the car for insurance, tax, or warranty purposes. If you lose it, ask the seller for another signed copy.
Can the buyer and seller use the same bill of sale form for a trade-in at a dealership?
No. Dealerships use their own paperwork and handle the title transfer themselves. A private bill of sale is only for sales between two individuals, not for dealer transactions.