A bill of sale is a written record that you and the buyer (or seller) sign to prove who owned the car and when the ownership changed hands

A bill of sale is a document that shows a vehicle changed owners. It records the seller's name and address, the buyer's name and address, the vehicle's details (make, model, year, VIN, odometer reading), the sale price, and the date of the transaction. Both the seller and buyer sign it. The bill of sale is not the same as the title — the title is the legal proof of ownership that the state issues. The bill of sale is your record that the transaction happened and the price agreed upon.

You need a bill of sale because it protects both of you. For the seller, it proves you are no longer responsible for the car once the buyer takes it. For the buyer, it proves they paid for the vehicle and what they paid. If a dispute arises later — about the condition of the car, whether repairs were promised, or who is liable for an accident that happened right after the sale — the bill of sale is evidence of what was agreed.

Many states do not require a bill of sale by law, but your state's DMV may ask for one when you transfer the title. Even if it is not required, creating one is a straightforward step that takes a few minutes and costs nothing.

Key Takeaways

  • A bill of sale records the seller, buyer, vehicle details, sale price, and date — and both parties must sign it.
  • The bill of sale protects the seller by proving they no longer own the car and protects the buyer by documenting what they paid.
  • You can write a bill of sale by hand on plain paper, type it yourself using a template, or read a form from your state's DMV website.
  • Keep a copy for your records even if your state does not require it, because it is your proof of the transaction if a problem arises later.

What information must go in a bill of sale

The bill of sale should include the seller's full name, address, and phone number (or email). Include the buyer's full name, address, and phone number or email as well. Write the vehicle's year, make, model, and color. The Vehicle Identification Number (VIN) — a 17-character code stamped on the driver's side of the dashboard and on the title — must be included. The odometer reading at the time of sale goes in the document too, because it shows the mileage the buyer is accepting.

Write the sale price in both numbers and words (for example, "$5,500" and "Five thousand five hundred dollars"). This prevents confusion if someone later claims a different amount was agreed. Include the date of the sale. If the car is being sold as-is (meaning the buyer accepts it in its current condition with no warranty from the seller), write that clearly. If there are any known defects or damage, list them — this protects the seller by showing the buyer knew about the problems before purchase.

At the bottom, both the seller and buyer sign and print their names. Some people add the date they signed, which can differ from the sale date if paperwork is completed later. If either party has a middle initial or suffix (Jr., Sr., III), include it so there is no confusion about identity.

How to create a bill of sale yourself

You can write a bill of sale by hand on a blank sheet of paper. Use a pen (not pencil) and write clearly so the document is straightforward to read if it is ever needed as evidence. Start with a heading like "Bill of Sale" at the top. Then write out each section: seller information, buyer information, vehicle details, sale price, date, and any notes about the car's condition. Leave space at the bottom for both signatures.

Alternatively, you can type a bill of sale using a word processor like Microsoft Word or Google Docs. Many state DMV websites offer a free template you can read and fill in. Search "[your state] DMV bill of sale" to find the official form. If your state does not have one, you can find generic templates online — look for ones from reputable sources like your state bar association or a government website, not random third-party sites.

Print the completed bill of sale and have both the seller and buyer sign it in person if possible. If that is not possible, the seller can sign, make a copy, and mail it to the buyer to sign and return. Both of you should keep a signed copy. Some people have the document notarized (signed in front of a notary public), which adds an extra layer of verification, though most states do not require this for a car bill of sale.

What a completed bill of sale looks like

Here is an example of a straightforward bill of sale you can use as a reference:

BILL OF SALE

This bill of sale is entered into on [date], between [seller name], address [seller address], phone [seller phone] (Seller) and [buyer name], address [buyer address], phone [buyer phone] (Buyer).

Vehicle Information: Year: [year] Make: [make] Model: [model] Color: [color] VIN: [VIN] Odometer Reading: [mileage] miles

Sale Price: $[amount] ([amount in words])

Condition: This vehicle is sold as-is. [List any known defects or damage, or write "No known defects reported."]

Seller Signature: _________________ Date: _______ Seller Printed Name: _________________

Buyer Signature: _________________ Date: _______ Buyer Printed Name: _________________

This format is straightforward and covers all the essential information. You can add or remove sections depending on your situation. For example, if the seller is financing part of the sale, you might add a section for payment terms. If the car has a lien (the bank or lender still owns it), note that the buyer understands the lien must be paid off before they receive clear title.

When to use a bill of sale and what happens next

Use a bill of sale whenever you buy or sell a car, whether it is a private sale between individuals or a trade-in at a dealership. Dealerships usually have their own bill of sale forms, so you do not need to create one yourself in that case. For private sales, creating a bill of sale is the responsible step.

After both parties sign, the buyer typically takes the bill of sale to the DMV (or your state's equivalent agency) along with the title, proof of insurance, and any other documents required to register the vehicle in their name. The seller should keep a copy for their records. If the seller still owes money on the car (a loan or lien), they must pay off that debt before the title can be transferred to the buyer — the bill of sale does not clear a lien, but it does document that the sale occurred.

The bill of sale becomes important if a problem arises after the sale. If the buyer claims the seller misrepresented the car's condition, or if the seller is contacted about an accident that happened after the sale, the bill of sale is proof of when ownership changed. It also shows what was disclosed about the car's condition at the time of purchase.

Common mistakes to avoid when writing a bill of sale

Do not leave the VIN blank or write it incorrectly. The VIN is the unique identifier for the vehicle, and mistakes here can cause problems when the buyer registers the car. Copy it directly from the title or the dashboard and double-check it before signing.

Do not forget to write the sale price in both numbers and words. If only one is written and they do not match, there is room for dispute. Do not leave the odometer reading blank — this is required by federal law on bills of sale for cars under 10 years old, and it protects both parties by documenting the mileage at the time of sale.

Do not skip the "as-is" statement or condition section if the car has known problems. If the buyer later claims they did not know about a dent, rust, or mechanical issue, the bill of sale is your proof that they did. Be honest about the car's condition — hiding known defects can lead to legal trouble for the seller.

Do not sign the bill of sale unless all the information is correct and both parties agree. Once signed, it is a binding record of the transaction. If you need to make changes after signing, cross out the error, write the correction above it, and have both parties initial the change.

Frequently Asked Questions

Can I use a bill of sale instead of a title to register a car?

No. The bill of sale is a record of the sale, but the title is the legal proof of ownership. You need both the bill of sale and the title to register the car in your name at the DMV. The seller must sign the title over to you, and you submit both documents together.

What if I bought a car and the seller will not give me a bill of sale?

Ask the seller to sign one before you hand over the money. If the seller refuses, that is a red flag — it suggests they may not be the legal owner or they are hiding something. Do not complete the purchase until you have a signed bill of sale and a signed title. If the sale is already done and the seller refuses, contact your state's DMV or attorney general's office for guidance.

Do I need to notarize a bill of sale?

Most states do not require notarization for a car bill of sale. However, having it notarized adds proof that both parties signed willingly and that their identities were verified. If you are concerned about a dispute later, notarization is worth the small cost — usually $10 to $25 at a bank, notary office, or UPS store.

What if the buyer does not register the car right away?

Keep your copy of the signed bill of sale. If the car is involved in an accident or crime before the buyer registers it, the bill of sale proves you sold it and when. Without it, you could be held liable for something that happened after you no longer owned the vehicle. This is why the bill of sale is important even if registration is delayed.

Can I write a bill of sale on my phone or tablet?

Yes, you can type it in a notes app or word processor on your phone, then print it out and sign it. However, both parties should sign a printed copy, not a digital signature, because a printed and handwritten signature is clearer evidence if the document is ever needed in a dispute. Some states are beginning to accept electronic signatures, but a printed document with pen signatures is the safest approach.