What a bill of sale is and why you need one

A bill of sale is a written record that you sold a car to someone else, or that someone sold a car to you. It shows the date, the vehicle details, the price paid, and the signatures of both the seller and buyer. It is not the same as a title — the title is the legal proof of ownership that the state issues. A bill of sale is your proof that a transaction happened.

You need a bill of sale because it protects both of you. If you are selling, it proves you no longer own the car and are not responsible for what the buyer does with it after the sale. If you are buying, it proves you paid for the car and what you paid. If a dispute comes up later — about the price, the condition, or who owns it — the bill of sale is the document that settles it.

Most states do not require a bill of sale by law, but many will accept one as proof of sale when you transfer the title at the DMV. Some states do require it. Even where it is not required, creating one takes 10 minutes and costs nothing, and it is the clearest way to protect yourself.

Key Takeaways

  • A bill of sale records that a car was sold, who bought it, who sold it, the price, and the date — and both parties must sign it.
  • Most states do not legally require a bill of sale, but many DMVs will accept one as proof of sale when you transfer the title.
  • Your state may have a specific bill of sale form, which you can find on your state DMV website or by calling your local office.
  • A bill of sale protects the seller by proving the car was sold and the buyer by proving what was paid and when.
  • You should keep a copy for your records even after the sale is complete, and the buyer should do the same.

What information goes on a bill of sale

A bill of sale must include the names and addresses of both the seller and the buyer. It should also include the date of the sale. These three pieces of information are what make the document legally meaningful — without them, it is just a note.

The vehicle information section should list the year, make, model, and vehicle identification number (VIN). The VIN is the 17-character code on your title and registration, and on the driver's side of the dashboard. Including the VIN makes it impossible to confuse this car with another one. You should also note the odometer reading at the time of sale, the color, and the license plate number if you have it.

The price section is where you write the exact amount paid. Write it both as a number ($5,000) and as words (Five Thousand Dollars). If the buyer is paying in cash, note that. If they are paying by check or transfer, you can note the method. Some sellers also note whether the sale is "as-is" — meaning the buyer accepts the car in its current condition with no warranty — or whether the seller is making any promises about the car's condition.

Both the seller and buyer must sign and date the bill of sale. Some people have it notarized, which means a notary public watches you sign it and stamps it. Notarization is not required in most states, but it does add a layer of proof that the signatures are real.

Finding your state's bill of sale form

Many states have an official bill of sale form on their DMV website. Go to your state's DMV site and search for "bill of sale" or "vehicle bill of sale." If your state has an official form, use it — it will include all the fields the DMV expects to see, and using the official form removes any question about whether you did it right.

If your state does not have an official form, you can create your own using a template. A basic template should include spaces for seller name and address, buyer name and address, vehicle year/make/model/VIN, sale date, price, and signature lines for both parties. You do not need fancy language or legal jargon — plain English is fine and is actually clearer.

Some states' DMV offices will tell you over the phone whether they have a form and where to find it. If you cannot find it online, calling your local DMV is faster than searching. Have your state name ready when you call.

How to fill out and sign the bill of sale

Print the form or template and fill it out by hand or on a computer before you meet the buyer. Use black or blue ink if you are writing by hand — it photocopies better than other colors. Write clearly and spell out names exactly as they appear on the buyer's and seller's IDs. Do not use nicknames or shortened versions.

For the vehicle information, copy the VIN directly from the title or registration so there are no typos. Write the odometer reading as it appears on the dashboard at the time you sign. If the odometer shows 87,432 miles, write 87,432 — not "approximately 87,000" or "high mileage."

Both the seller and buyer should sign the form in front of each other, if possible. Each person should sign their own name, not print it. Write the date next to the signatures. If you are having it notarized, take it to a notary after both of you have signed — the notary will watch you sign again and add their stamp and signature.

Make at least two copies: one for the seller and one for the buyer. If you are having it notarized, ask the notary for extra copies. Keep your copy in a safe place with your other car documents.

When to use a bill of sale in the title transfer process

When the buyer goes to the DMV to transfer the title into their name, they may be asked to show proof of purchase. A bill of sale is that proof. Some DMVs require it; others accept it but do not require it. Either way, having one makes the process faster because the DMV does not have to ask questions about the sale.

The seller should keep a copy of the signed bill of sale for their records. If the buyer later gets into an accident or breaks the law with the car, and the police or a court asks whether you still own it, the bill of sale proves you do not. This is one of the most important reasons to keep it.

If you are buying a car, bring your copy of the bill of sale to the DMV when you explore for the title transfer. You will also need the original title signed by the seller, a completed process for title transfer (your state DMV will provide this), and proof of insurance. The bill of sale is not always required, but it is helpful to have.

What to do if you lose the bill of sale

If you signed a bill of sale but lost your copy, contact the other party and ask them to send you a copy of theirs. Both copies should be identical, so either one works. If you cannot reach the other party, you can recreate the bill of sale from memory and have both parties sign it again, but this is less ideal because it is dated after the original sale.

If you are at the DMV and they ask for a bill of sale but you do not have one, tell them you did not create one at the time of sale. Some DMVs will accept other proof, such as a cancelled check, a bank transfer record, or a text message showing the agreement. Ask what documents they will accept as proof of purchase.

For future sales, create the bill of sale before the money changes hands, sign it at the time of sale, and keep your copy when ready. This prevents the problem of losing it later.

Frequently Asked Questions

Do I have to notarize a bill of sale?

No. Notarization is optional in most states and is not required by the DMV. A notarized bill of sale is stronger proof in a dispute because a notary watched you sign, but it costs money and takes extra time. For a private sale between two people, a regular signed bill of sale is enough.

What if the buyer and I disagree on the price later?

The bill of sale is the proof of what was agreed to. If you both signed it and it says $5,000, that is the price. If one of you claims a different price was discussed, the signed bill of sale is what a court would look at. This is why writing the price clearly and having both people sign is so important.

Can I use a bill of sale from the internet?

Yes, as long as it includes all the required information: seller name and address, buyer name and address, vehicle VIN, sale date, and price. Check your state DMV website first to see if they have an official form — if they do, use that. If not, a template from a reputable source works fine.

Do I need a bill of sale if I am trading in my car at a dealership?

No. Dealerships handle their own paperwork and do not use a bill of sale. They will give you a receipt and handle the title transfer themselves. A bill of sale is for private sales between individuals.

Should I write "as-is" on the bill of sale?

You can, but it is not required. Writing "as-is" means the buyer accepts the car in its current condition and cannot come back later claiming you promised it would run a certain way. If you are selling a car with known problems, writing "as-is" protects you. If the car is in good condition, it does not matter much either way.