A bill of sale is a written record that you and the seller both sign to document the sale of a vehicle
A bill of sale is a straightforward document that shows who owned a car, who bought it, when the sale happened, and how much was paid. Both the seller and buyer sign it. It serves as proof that the ownership transfer took place and protects both parties by creating a written record of the transaction.
You need a bill of sale when you buy or sell a car privately — that is, directly from one person to another rather than through a dealership. Dealerships handle their own paperwork and don't require a separate bill of sale. But when you're buying from a private seller or selling your own car to someone else, a bill of sale becomes your main protection if a dispute arises later about the condition of the car, the price, or who owned it on a specific date.
The bill of sale itself does not transfer the title. The title — the legal document proving ownership — is handled separately through your state's Department of Motor Vehicles or equivalent agency. But the bill of sale is the first step: it's the evidence you'll need when you go to register the car in your name or when the seller needs to prove they sold it.
Key Takeaways
- A bill of sale is a signed agreement between buyer and seller that documents the vehicle's sale, price, and date — it protects both parties if questions arise later.
- You need a bill of sale for private sales only; dealerships provide their own paperwork and don't require one.
- The bill of sale is not the title itself and does not transfer ownership on its own — you must still register the vehicle with your state's DMV using the title.
- Your state may have a specific bill of sale form or may allow you to use a generic template, so check your DMV website before you sign.
- Both the buyer and seller should keep a signed copy for their records, and some states require the seller to provide a copy to the buyer at the time of sale.
What information goes on a bill of sale
A bill of sale includes the vehicle's details, the parties involved, and the terms of the sale. The standard information is: the vehicle identification number (VIN), the year, make, and model, the current odometer reading, the sale price, the date of sale, the seller's name and address, and the buyer's name and address. Both parties sign and print their names.
Some states add requirements like the seller's signature notarized (witnessed and certified by a notary public) or a statement that the seller discloses any known defects in the vehicle. A few states ask for the title number or license plate number as well. Check your state's DMV website to see if there's an official form or specific language required — using the right form prevents delays when you register the car.
If the sale includes a trade-in, a payment plan, or any condition (such as "as-is" or with a warranty), that should be written on the bill of sale too. The more detail you include, the less room there is for disagreement later.
Where to get a bill of sale form
Your state's DMV website usually offers a free bill of sale form you can read and print. Search "[your state] DMV bill of sale" to find it. If your state doesn't provide an official form, you can use a generic template from a legal document site or create one yourself as long as it includes all the required information.
Some states don't require a specific form at all — they just need a written record signed by both parties with the key details. If you're unsure whether your state has requirements, call your local DMV or check their website before you sign anything. Using the official form, if one exists, is the safest choice because it's already formatted the way your state's system expects.
You can also ask the seller if they have a form they prefer to use. Many people who sell cars regularly keep blank bills of sale on hand. As long as both of you agree to the terms and both sign, the form itself is less important than the information it contains and the fact that you both have a copy.
When to sign the bill of sale
Sign the bill of sale at the same time you hand over the money and receive the keys and title. This timing matters because it creates a clear record of when the sale actually happened. If you sign it days or weeks later, it can create confusion about when ownership changed, especially if something goes wrong with the car in between.
The seller should give you the signed bill of sale and the title document at the same meeting. You'll need both when you go to the DMV to register the car in your name. If the seller won't provide the title at the time of sale, do not hand over the money — the title is what proves they actually own the car and have the right to sell it.
Make sure both you and the seller sign and date the form in front of each other. Some states require the seller's signature to be notarized, so if that applies in your state, plan to visit a notary together or have the seller get it notarized before you meet. A notary is usually available at banks, UPS stores, or law offices for a small fee.
How a bill of sale protects you as a buyer
As a buyer, the bill of sale proves you paid for the car and when. If the seller later claims you didn't pay or tries to report the car stolen, you have a signed document showing the sale was legitimate. It also documents the car's condition at the time of sale — if you write "as-is" or note any known damage, you're protecting yourself from the seller claiming later that you damaged it.
The bill of sale also establishes the purchase price, which matters for insurance and loan purposes. If you financed the car through a bank or credit union, they'll want to see the bill of sale as proof of the purchase price. And if the seller misrepresented the car's condition or history, the bill of sale is evidence of what was agreed to at the time of sale.
Keep your signed copy in a safe place — ideally with your title, registration, and insurance documents. You may need it years later if you sell the car yourself or if a dispute arises about the vehicle's history.
How a bill of sale protects you as a seller
As a seller, the bill of sale proves you transferred ownership on a specific date and received payment. This is critical because you remain liable for the car until the new owner registers it in their name. If the buyer gets into an accident before registering the car, or if they rack up parking tickets, those could still be traced back to you as the registered owner unless you have proof you sold it.
The bill of sale shows the buyer acknowledged the car's condition at the time of sale. If the buyer later claims you sold them a broken car and tries to sue, you have a document showing what was agreed to. If you noted "as-is" or listed known defects, that protects you further.
After the sale, notify your state's DMV that you've sold the vehicle. Many states allow you to do this online or by mail using a form called a "Notice of Sale" or "Seller's Affidavit." This officially removes you from liability once the buyer registers the car. Keep a copy of the bill of sale and your DMV notification together as proof you completed the sale properly.
Differences between a bill of sale and a title
The bill of sale and the title are two separate documents that serve different purposes. The title is the legal document issued by your state that proves ownership of the vehicle. It has the VIN, the owner's name, and is signed by the state. The bill of sale is a private agreement between buyer and seller that documents the transaction.
When you buy a car, the seller gives you the title document (or a copy if the title is held by a lender). You then take the title and bill of sale to the DMV to register the car in your name. The DMV will issue you a new title with your name on it. The bill of sale is the evidence that you bought it; the title is the proof that you own it.
If the title is held by a lender (because the seller financed the car), the lender must sign off on the sale and release the title to the seller before the sale can be completed. This is separate from the bill of sale. The bill of sale documents the sale between you and the seller; the lender's release documents the lender's agreement to let the seller sell the car.
Frequently Asked Questions
Do I need a bill of sale if I'm buying from a dealership?
No. Dealerships provide their own paperwork, usually called a "Buyer's Order" or "Sales Agreement," which serves the same purpose. You don't need a separate bill of sale. The dealership handles the title transfer directly with the DMV.
What if the seller won't sign the bill of sale?
Don't buy the car. A seller who refuses to sign a bill of sale is a red flag — it suggests they may not actually own the car, may be hiding something about its history, or may plan to dispute the sale later. A legitimate seller will sign without hesitation.
Can I use a bill of sale I found online or created myself?
Yes, as long as it includes all required information and your state doesn't mandate a specific form. Check your state's DMV website first — if an official form exists, use it to avoid delays at registration. If no official form is required, a template or handwritten document signed by both parties is legally valid.
Do I need to get the bill of sale notarized?
Only if your state requires it. Some states require the seller's signature to be notarized; others don't. Check your state's DMV website or call them to confirm. If notarization is required, plan for it before you meet to complete the sale.
What happens if I lose my copy of the bill of sale?
Ask the seller for another signed copy if you still have contact with them. If you can't reach them, contact your state's DMV — they may have a record of the registration transfer that can serve as proof of the sale. Keep your copy in a safe place with your title and registration documents.