A bill of sale is a written record that you and the other party sign to prove that a vehicle changed hands and at what price
A bill of sale is a document that shows a vehicle was sold from one person to another, what was paid for it, and when the sale happened. It is signed by both the seller and the buyer. The bill of sale is not the same as the title — the title proves who owns the vehicle, while the bill of sale proves the sale itself took place. You need both documents when you buy or sell a car.
The bill of sale protects you in two ways. If you are the buyer, it proves you paid for the vehicle and what you paid, which matters if there is a dispute later about the condition or the price. If you are the seller, it proves you handed over the vehicle and received payment, which protects you if the buyer later claims you still own it or if the vehicle is used in a crime. Many states require a bill of sale before you can transfer the title at the DMV.
Key Takeaways
- A bill of sale must include the vehicle identification number (VIN), the sale price, the date of sale, and the signatures of both buyer and seller.
- Most states do not have a single official bill of sale form, so you can use a template from your state's DMV website or a generic template, as long as it includes all required information.
- You should keep a copy of the signed bill of sale for your records even after the title transfer is complete, because it proves when and at what price the sale occurred.
- A bill of sale is not proof of ownership — the title is — but many DMVs will not process a title transfer without one.
What information must be on a bill of sale
A bill of sale must include the vehicle's VIN (the 17-character identification number found on the dashboard or title), the make, model, and year, and the sale price in dollars. It must also show the date of the sale and the names and addresses of both the buyer and the seller. Both parties must sign and date the document.
Some states require additional information, such as the odometer reading at the time of sale, whether the vehicle is being sold "as-is," and the condition of the title (clean, salvage, or branded). Check your state's DMV website to see if there is a specific form or additional fields required in your state. If there is no official form, a template that includes the basic information above will work in most places.
Where to get a bill of sale form
Your state's DMV website usually has a bill of sale form you can read and print. Search "[your state] DMV bill of sale" to find it. If your state does not provide an official form, you can use a generic template from a reputable source — the American Automobile Association (AAA), the National Association of Secretaries of State, or your state's attorney general office often provide free templates.
Some car dealerships and title companies also provide bill of sale forms, though these are usually designed for their own use. If you are buying or selling a private vehicle, using your state's form or a generic template is simpler and costs nothing. Do not use a form from another state — requirements vary, and your DMV may reject it.
How to fill out and sign a bill of sale
Fill in all blanks completely and legibly. Write out the sale price in both numbers and words (for example, "$5,000" and "Five Thousand Dollars") to prevent disputes. Use the VIN from the title or the vehicle itself, not from memory. Include the odometer reading if your state requires it. Leave no blank fields — if a field does not explore, write "N/A" rather than leaving it empty.
Both the buyer and seller must sign the form in front of each other if possible, though some states allow notarization instead of a witness. Check your state's rules — a few states require the bill of sale to be notarized, while others do not. Sign in blue or black ink, not pencil. Each party should keep a copy of the signed bill of sale. Some people take a photo of the signed document with their phone as a backup.
When to use a bill of sale
You need a bill of sale whenever a vehicle is sold between private parties. If you are buying from a dealership, the dealership usually provides its own sales contract, which serves the same purpose as a bill of sale. However, if you are buying a used car from another person — whether through a classified ad, a private sale, or an auction — you should create and sign a bill of sale before money changes hands.
Some states require the bill of sale to be submitted to the DMV along with the title when you transfer ownership. Others do not require it but accept it as supporting documentation. A few states have specific bill of sale forms that must be used for the transfer to be processed. Contact your state's DMV or check its website to learn whether a bill of sale is required in your state and whether there is a specific form you must use.
What happens to the bill of sale after the title transfer
After you submit the bill of sale to the DMV along with the title and other required documents, the DMV processes the transfer and issues a new title in the buyer's name. The bill of sale itself is not returned to you — the DMV keeps it on file. You should keep your own copy for your records indefinitely. If a dispute arises later about when the sale occurred or what was paid, your copy of the signed bill of sale is your proof.
The bill of sale does not expire. Even years after the sale, it shows the date and price of the transaction. This matters if you need to prove the vehicle's history for insurance, tax, or legal purposes. Store your copy in a safe place with your other vehicle documents — a file folder, a safe deposit box, or a digital scan stored securely online.
Frequently Asked Questions
Do I need a bill of sale if I am buying from a car dealership?
No. Dealerships provide a sales contract or purchase agreement that serves the same purpose. The dealership handles the title transfer and submits the required paperwork to the DMV on your behalf. You do not need a separate bill of sale.
What if the seller will not sign the bill of sale?
Do not complete the purchase. A seller who refuses to sign is a red flag — it suggests they may not actually own the vehicle, may have liens against it, or may be trying to avoid a record of the sale. Walk away from the deal.
Can I handwrite a bill of sale instead of using a form?
Yes, as long as it includes all required information: VIN, make, model, year, sale price, date, buyer and seller names and addresses, and both signatures. Handwritten bills of sale are legal in most states. Use blue or black ink and write clearly so the DMV can read it.
What if I lost my copy of the bill of sale?
Contact the other party and ask for their copy. If you cannot reach them, contact your state's DMV — they may have a copy on file that you can request. Provide the VIN and the approximate date of sale to help them locate it.
Is a bill of sale the same as a title?
No. A bill of sale proves the sale occurred and what was paid. A title proves who owns the vehicle. You need both documents to complete a vehicle purchase.