What a bill of sale does and why you need one
A bill of sale is a written record that you sold a vehicle to someone else, or that someone sold one to you. It documents the date, the vehicle details, the price, and the names and signatures of both the buyer and seller. When you sign one, you are creating proof of the transaction — proof that money changed hands and ownership transferred on a specific date.
You need a bill of sale because it protects both of you. For the seller, it proves you received payment and no longer own the car — so if the buyer gets into an accident or racks up parking tickets after the sale, those are not your legal problem. For the buyer, it proves you paid for the vehicle and have a right to register it in your name. Without one, a dispute over who owns the car or whether payment was made becomes your word against theirs.
A bill of sale is separate from the title document itself. The title is the official government record of ownership, issued by your state's Department of Motor Vehicles or equivalent. The bill of sale is the paper trail that shows how the title got from one person to the next.
Key Takeaways
- A bill of sale documents that money changed hands and ownership transferred on a specific date, protecting both buyer and seller from later disputes.
- You can write one yourself using a template or form — most states do not require a specific format, only that the essential information is present and both parties sign.
- The bill of sale is not the same as the title; you will still need to register the vehicle with your state to transfer ownership officially.
- Keep a copy for your records even after the sale is complete, because you may need it to prove the transaction later.
What information goes on a bill of sale
A bill of sale needs the vehicle identification number (VIN), the make, model, and year, the odometer reading, and the sale price. It also needs the full legal names and addresses of both the buyer and the seller, the date of the sale, and the signatures of both parties. Some states ask for the title number as well.
The price matters even if no money changed hands. If you are giving the car to a family member, you can write "gift" or "$0" in the price field, but do not leave it blank. Some states treat a blank price field as a red flag during registration.
The odometer reading protects against title fraud — it creates a record of the mileage at the time of sale, which can be checked against the title history later. Write the actual mileage, not an estimate.
Where to find a free bill of sale template
Most states publish a bill of sale form on their Department of Motor Vehicles website. Search "[your state] bill of sale form" and look for the .pdf link on the official DMV site. Some states have a specific form they prefer; others accept any written document that includes the required information.
If your state does not publish one, or if you prefer a different format, you can use a generic template from a legal document site. The template does not have to be state-specific — the basic structure is the same everywhere. What matters is that you include all the information listed above and that both parties sign and date it.
You can also write one from scratch on plain paper if you want to. There is no legal requirement for a printed form. The document just needs to be clear, legible, and signed by both people.
How to fill out and sign the bill of sale
Print the form or write out your own document. Fill in the vehicle information first — VIN, make, model, year, and odometer reading. Then write in the sale price and the date of the transaction. Add the full legal names and addresses of both the buyer and seller, exactly as they appear on government ID.
Both the buyer and seller must sign the document in front of each other, or at minimum, both must sign it before it is used. Some people have the signatures notarized, which means a notary public witnesses the signing and stamps the document. Notarization is not required in most states, but it adds a layer of proof if there is ever a dispute.
Make at least two copies — one for the seller and one for the buyer. Keep your copy in a safe place. You may need it when you register the vehicle or if questions come up later about when the sale happened or what the price was.
When the bill of sale is used during registration
After the sale, the buyer takes the bill of sale to the DMV along with the title, proof of insurance, and proof of identity to register the vehicle in their name. The bill of sale shows the DMV that the buyer has a legitimate claim to the car. The seller does not usually need to bring the bill of sale to the DMV — the buyer handles the registration — but the seller should keep a copy for their records.
Some states ask you to submit the bill of sale with your registration paperwork; others just want to see it if there is a question about ownership. Check your state's DMV website to see whether the bill of sale is part of the required documents or just a supporting document you should have on hand.
The buyer should register the vehicle within a set time frame — usually 10 to 30 days, depending on the state. Until the registration is complete, the title still shows the seller's name, so the bill of sale is the only proof that the ownership transfer was legitimate.
What to do if you lose the bill of sale
If you are the seller and you have lost your copy, contact the buyer and ask them to provide a copy of the signed bill of sale. If the buyer has also lost it, you can write a new one together and both sign it, dating it to the original sale date. This is not ideal — it is better to have the original — but it is better than having no record at all.
If you are the buyer and you have lost the bill of sale before registering the vehicle, ask the seller for a copy. If the seller will not provide one or cannot be reached, you may still be able to register the vehicle if you have the title and can show proof of purchase another way — a bank statement, a check, a receipt, or a text message exchange. Different states have different rules about what counts as proof, so contact your DMV to ask what documentation they will accept.
Frequently Asked Questions
Does a bill of sale have to be notarized?
No. Notarization is optional in most states. A bill of sale is valid as long as both parties sign it and it includes the required information. Notarization adds extra proof that the signatures are real, which can be useful if there is ever a dispute, but it is not required to make the document legal.
Can I use a bill of sale from another state?
Yes. The basic structure of a bill of sale is the same across all states. If your state does not have a specific form, you can use a template from another state or write your own. The important thing is that it includes the VIN, the sale price, the date, and the signatures of both parties.
What if the buyer and seller cannot meet in person to sign?
You can sign separately, but both signatures should be on the same document before it is used. One option is to print the form, have one person sign it, mail or email it to the other person, have them sign it, and mail it back. Both people should keep a copy. Some states also allow electronic signatures on a bill of sale, though this varies — check your DMV website to confirm.
Do I need a bill of sale if I am trading in my car at a dealership?
No. When you trade in a vehicle at a dealership, the dealership handles the paperwork and the title transfer. You do not need a separate bill of sale. The dealership will give you a receipt for the trade-in value, which serves as your proof of the transaction.
Should I include the VIN on the bill of sale if I do not have the title yet?
Yes. The VIN is printed on the vehicle itself — on the dashboard, the door jamb, and the engine block. You can look it up without the title. Including the VIN on the bill of sale is important because it prevents confusion about which vehicle was sold, especially if the buyer or seller owns multiple cars.