A bill of sale is a written record that you sold a car to someone else, signed by both of you, and kept for your records
A bill of sale documents the transfer of a vehicle from one owner to another. It names the seller and buyer, describes the car (make, model, year, VIN), states the sale price, and is signed by both parties. You do not need a bill of sale to transfer a title at the DMV — that is what the title document itself does — but a bill of sale protects both of you by creating a paper trail of who owned the car when and for how much.
The bill of sale is your proof that you sold the car on a specific date for a specific price. If the buyer gets into an accident the day after purchase and the previous owner is somehow named in a lawsuit, the bill of sale shows you no longer owned it. If you sell a car and the buyer never registers it, then racks up parking tickets in your name, the bill of sale is evidence you transferred ownership. For the buyer, it proves what they paid, which matters for insurance claims and for their own records if they later sell the car.
Key Takeaways
- A bill of sale is a separate document from the title and is kept by both the seller and buyer as proof of the transaction.
- The bill of sale must include the VIN, sale price, date of sale, and signatures from both the seller and buyer to be valid.
- Each state has its own bill of sale form or requirements, so check your state's DMV website for the correct version.
- You should complete the bill of sale on the same day you hand over the keys and receive payment, and each party keeps a copy.
What information must be on the bill of sale
The bill of sale needs the vehicle identification number (VIN), which you find on the driver's side dashboard or on the title itself. Include the year, make, model, and color so there is no confusion about which car changed hands. Write down the sale price in both numbers and words — for example, "Five Thousand Dollars ($5,000)" — because this prevents disputes later and is what your state uses to calculate sales tax if applicable.
Add the full names, addresses, and phone numbers of both the seller and buyer. Include the date of the sale. Both the seller and buyer must sign and print their names. Some states require the signature to be notarized (witnessed and certified by a notary public), though most do not. Check your state's DMV website to see whether notarization is required where you live.
If the car has a lien on it — meaning a bank or lender still owns part of it — note that on the bill of sale. Write something like "Vehicle subject to lien held by [Lender Name]" so the buyer knows they cannot take full ownership until the loan is paid off. If there are any known mechanical problems or damage, you can note those too, though you are not required to.
Where to find your state's bill of sale form
Most states provide an official bill of sale form on their DMV website. Search "[Your State] DMV bill of sale" and you will usually find a PDF you can print and fill out by hand, or a form you can fill in on your computer and then print. Some states call it a "bill of sale," others call it a "notice of sale" or "vehicle sale form." The DMV site will tell you which one your state uses.
If your state does not have an official form, you can use a generic bill of sale template from a legal document website, but stick to one designed for your state because requirements vary. A bill of sale from a template site is usually free or costs a few dollars. The important thing is that it includes all the information listed above and is signed and dated by both parties.
Do not use a bill of sale from another state. A bill of sale from California will not meet the requirements in Texas, and using the wrong form can cause delays when the buyer tries to register the car in their name.
When and how to sign the bill of sale
Sign the bill of sale on the same day you hand over the keys and the buyer gives you payment. This keeps the date accurate and makes sure both of you are present to sign. Print your name clearly below your signature so there is no question about who signed it. The buyer should do the same. If either party cannot be present, you can sign separately, but both signatures must be on the same document before either of you considers the sale complete.
Make at least two copies — one for you and one for the buyer. If your state requires notarization, both of you go to a notary public together with the unsigned bill of sale, sign it in front of the notary, and the notary stamps and signs it. The notary will make copies for you. Keep your copy in a safe place, ideally with your other car-related documents, for at least a few years.
How the bill of sale connects to the title transfer
The bill of sale and the title are two separate documents that serve different purposes. The title is the legal proof of ownership issued by your state. The bill of sale is your record of the transaction. When you sell a car, you sign the back of the title to transfer ownership to the buyer, and you also sign the bill of sale. The buyer takes both documents to the DMV to register the car in their name.
Some states require you to submit the bill of sale to the DMV along with the title when you transfer ownership. Others do not require it but recommend keeping one for your records. Check your state's DMV website to see whether the bill of sale must be filed or if it is just for your protection. Either way, having a signed bill of sale protects both you and the buyer if questions come up later about when the car changed hands or what was agreed to.
What to do if you lose your copy of the bill of sale
If you kept a copy and it gets lost, ask the buyer for their copy. If the buyer no longer has it, you can ask them to sign a new bill of sale with the original date and sale price, though they are not required to. If neither of you has the original, there is no way to recreate an official bill of sale after the fact.
This is why keeping your copy in a safe place matters. If you are the seller and you lose your copy, the buyer still has theirs, so the transaction is documented. If you are the buyer and you lose your copy, the seller should have one. The bill of sale is not filed with the state in most places, so it exists only in the copies you and the buyer keep.
Common mistakes to avoid when filling out a bill of sale
Do not leave the sale price blank or write "as is" instead of a number. The price is the whole point of the document. If you are selling the car for less than its market value — for example, to a family member — write the actual amount you agreed to, not what you think the car is worth. The price on the bill of sale is what matters legally and for tax purposes.
Do not use a nickname or shortened name. Write out full legal names as they appear on driver's licenses. If the buyer's name is "Robert" but their license says "Robert James," use "Robert James." Mismatched names can cause problems when the buyer tries to register the car.
Do not forget to include the VIN. A bill of sale without a VIN is much weaker as proof because it does not clearly identify which car was sold. The VIN is on the title, on the dashboard, and on the insurance documents. Take the time to copy it correctly.
Frequently Asked Questions
Do I need a bill of sale if I am trading in my car at a dealership?
No. Dealerships handle the paperwork themselves and do not use a bill of sale. They will have you sign the title and their own trade-in forms. A bill of sale is for private sales between individuals.
What if the buyer and I agree on a price but they pay me in installments?
Write the full agreed-upon price on the bill of sale, not just the first payment. The bill of sale documents the sale price, not the payment schedule. If you want to document the payment plan separately, you can add a note like "Paid in installments: $2,000 due [date], $3,000 due [date]," but the total sale price should still be clear.
Can I sell a car without a bill of sale?
Technically yes, but you should not. The title transfer itself documents the change of ownership, but a bill of sale gives you written proof of the date and price. Without it, if a problem arises later — the buyer does not register the car, or gets a ticket in your name — you have no paper trail to prove you sold it and when.
Does the bill of sale have to be notarized?
Only in some states. Check your state's DMV website to see if notarization is required. If it is, both you and the buyer must go to a notary public together. If it is not required, a notarized bill of sale is still valid and adds an extra layer of proof, but it is not necessary.
What if I sell a car and the buyer never registers it in their name?
The bill of sale proves you transferred ownership on a specific date. If the buyer does not register it and parking tickets or other violations pile up in your name, you can show the bill of sale to the DMV or the court as proof that you no longer owned the vehicle. This is one of the main reasons to keep your copy safe.