A bill of sale is a written record that you and the buyer sign to document the sale of your vehicle
A bill of sale is a legal document that proves ownership has transferred from you to the buyer. It records the vehicle details, the sale price, the date, and the signatures of both parties. When you sell a car privately—not through a dealer—a bill of sale protects you both by creating a paper trail that shows who owned the vehicle at what point in time.
The document itself is straightforward. It does not need to be fancy or notarized in most states, though some states do require notarization for the transfer to be official. A printable bill of sale template gives you the structure; you fill in the blanks with the specific information about your car and the transaction. Once both you and the buyer sign it, each of you keeps a copy.
Without a bill of sale, you have no proof you sold the car. If the buyer gets into an accident, racks up parking tickets, or commits a crime with the vehicle before they register it in their name, you could still be held liable because the title still shows you as the owner. A bill of sale does not transfer the title itself—that happens through your state's motor vehicle department—but it proves the sale occurred and when.
Key Takeaways
- A bill of sale documents the date, price, and vehicle details of a private car sale and must be signed by both the seller and buyer.
- The bill of sale protects you from liability after the sale by proving you no longer owned the vehicle when an incident occurred.
- Most states do not require notarization, but a few do; check your state's motor vehicle department website to confirm the requirement.
- You and the buyer each keep a signed copy, and you should also give a copy to your insurance company when you cancel the policy.
- The bill of sale is separate from the title transfer; you must still submit the title to your state's motor vehicle department for the buyer to register the car.
What information goes on a bill of sale
The bill of sale needs to identify the vehicle clearly so there is no confusion about which car changed hands. Include the vehicle identification number (VIN), the year, make, model, color, and license plate number. The VIN is the most important—it is a 17-character code unique to that vehicle and appears on the title, the dashboard, and the driver's side door jamb.
Next, record the sale details: the purchase price, the date of sale, and the odometer reading. Some states require the odometer reading to prevent title fraud. Then list the full names, addresses, and phone numbers of both the seller (you) and the buyer. If either party is a business or organization rather than an individual, use the legal business name and the name of the person signing on behalf of that business.
At the bottom, both you and the buyer sign and print your names. Some templates include a line for the buyer to acknowledge that they have inspected the vehicle and accept it in its current condition, which protects you from later claims that something was wrong with the car when you sold it. You can add that language if you want extra protection, or leave it out if the buyer objects.
Where to find a bill of sale template
Your state's motor vehicle department website often provides an official bill of sale form or a list of what must be included. Search "[your state] bill of sale template" or go directly to your state's DMV or Secretary of State website. Some states have a specific form you should use; others straightforward require that certain information be present, and you can use any template that includes it.
If your state does not provide an official form, you can use a generic printable template from a legal document site or a blank form from an office supply store. The template does not have to be state-specific as long as it includes the vehicle information, sale price, date, and signature lines. You can also type one yourself in a word processor if you follow the basic structure: vehicle details, sale price, date, seller information, buyer information, and signature lines.
Some insurance companies and auto clubs provide bill of sale templates to their members. If you belong to AAA or a similar organization, check their website or call to ask whether they offer one. The advantage of using your state's official form is that you know it will be accepted by the motor vehicle department and any court if a dispute arises later.
How to fill out and sign the bill of sale
Print two copies of the template—one for you and one for the buyer. Fill in all the blanks with accurate information. Use black or blue ink if you are printing and signing by hand; avoid pencil because it can be erased. Type the information if you prefer, but both parties must sign by hand in ink.
Before you sign, read through the entire document to make sure every detail is correct. Check the VIN against your title and registration. Verify the sale price matches what you and the buyer agreed on. Confirm the date is correct. Any error—especially in the VIN or price—can cause problems when the buyer tries to register the vehicle or if a dispute arises.
Meet with the buyer in person to sign the document together. Both of you should sign and print your names on both copies. Some templates have a witness line; if your state requires notarization, you will need to take the document to a notary public, who will watch you both sign and add their seal and signature. If notarization is not required in your state, you do not need a witness, but having one does add an extra layer of proof that the signatures are genuine.
Notarization requirements by state
A few states require the bill of sale to be notarized before it is valid. These include Alabama, Arkansas, Connecticut, Illinois, Kansas, Kentucky, Louisiana, Michigan, Mississippi, Missouri, Montana, Nebraska, New Hampshire, New Mexico, North Carolina, Ohio, Oklahoma, South Carolina, Tennessee, Texas, and West Virginia. In these states, you cannot straightforward sign the document at home; you must go to a notary public with the buyer and sign in front of them.
A notary public is usually available at a bank, law office, UPS store, or library. The notary will ask for identification from both you and the buyer, watch you both sign the bill of sale, and then add their official seal and signature. The cost is typically between five and twenty dollars. If the buyer cannot meet you in person, some notaries can notarize documents remotely using video, though this varies by state and notary.
If you live in a state that does not require notarization, you can skip this step. However, notarizing the document anyway does not hurt and may make it stronger evidence if you ever need to prove the sale occurred. Check your state's motor vehicle department website to confirm whether notarization is mandatory where you live.
What to do with the bill of sale after signing
Keep your signed copy in a safe place—a file folder, safe deposit box, or digital scan stored in the cloud. You may need it later to prove you sold the vehicle. If the buyer gets into an accident or receives a traffic ticket before they register the car in their name, the police or insurance company may contact you. Your copy of the bill of sale proves that you no longer owned the vehicle at that time.
Give the buyer their signed copy and make sure they understand that they need to take it to the motor vehicle department along with the title to register the vehicle in their name. The bill of sale is not a substitute for the title transfer; it is a supporting document that shows when the sale occurred.
Notify your insurance company that you have sold the vehicle and provide them with a copy of the bill of sale. Ask them to cancel your policy effective the date of sale. This protects you from being charged for coverage after you no longer own the car and from liability if something happens to the vehicle after the sale.
Common mistakes to avoid when writing a bill of sale
The most frequent error is writing down the wrong VIN or license plate number. Double-check both against your title and registration before you sign. A mismatched VIN can prevent the buyer from registering the vehicle and may raise red flags about whether the sale was legitimate.
Another mistake is leaving the price blank or writing "as is" instead of a specific amount. The price is important for tax purposes and for proving the transaction was a genuine sale, not a gift or a transfer between family members. Even if you negotiated a low price or the buyer paid in cash, write down the actual amount agreed upon.
Do not sign the bill of sale before the buyer has inspected the vehicle and agreed to the condition. Once you both sign, the buyer has accepted the car as it is. If you sign first and the buyer later discovers a problem, they may claim you misrepresented the vehicle or try to back out of the sale.
Avoid using white-out or crossing out information and initialing the change. If you make a mistake, print a fresh copy and start over. A document with corrections looks unprofessional and may raise questions about whether it was altered after the fact.
Frequently Asked Questions
Do I need a bill of sale if I am selling to a dealer?
No. Dealers have their own paperwork and do not use a bill of sale. They handle the title transfer and registration as part of their business. A bill of sale is only necessary for private sales between individuals.
What if the buyer does not show up to sign the bill of sale?
Do not hand over the keys or the title until you have both signed the bill of sale. If the buyer refuses to sign or does not appear, the sale has not been completed. Keep the vehicle and the title in your possession until the transaction is finalized.
Can I sell a car without a title if I have a bill of sale?
No. The title is a separate legal document that proves ownership. A bill of sale documents the sale, but the buyer cannot register the vehicle without the title. You must provide both the signed bill of sale and the original title to complete the sale.
Is a bill of sale the same as a title transfer?
No. A bill of sale proves the sale occurred and when. A title transfer is the legal process of changing the owner's name on the title document at the motor vehicle department. You need both: the bill of sale to document the private transaction, and the title transfer to make the change official with the state.
What if I lose my copy of the bill of sale after the sale?
Ask the buyer for another signed copy. If they refuse or you cannot reach them, contact your state's motor vehicle department and explain the situation. They may be able to provide a record of the title transfer, which serves as proof that the sale occurred. Keep the copy they provide in your records.