A bill of sale is a written record that you and the buyer sign to document the sale of your vehicle

A bill of sale is a document that proves ownership changed hands and records the sale price, vehicle details, and the date of the transaction. It protects both you and the buyer by creating a paper trail. When you sell a car privately (not through a dealer), a bill of sale is often the only written proof that the sale occurred, and it can be critical if a dispute arises later or if the buyer gets into an accident before transferring the title.

Most states do not legally require a bill of sale, but many recommend it, and some states do require one for certain transactions. Even where it is not required, creating one takes 10 minutes and costs nothing. It is the single most important document you can hand over besides the title itself.

Key Takeaways

  • A bill of sale records the vehicle identification number, sale price, date, and signatures of both seller and buyer, creating proof that ownership transferred.
  • You can use a template from your state's Department of Motor Vehicles website, a generic form from a legal site, or write one yourself in plain language.
  • Both you and the buyer must sign the bill of sale, and you should each keep a copy before you hand over the keys and title.
  • A bill of sale does not transfer the title itself — you still need to complete the title document through your state's DMV process.
  • If you sell a car without a bill of sale and the buyer later commits a crime with it or racks up parking tickets, you may have difficulty proving you no longer owned it.

What information goes on a bill of sale

A bill of sale should include the vehicle identification number (VIN), make, model, year, and color. It should also list the sale price, the date of sale, and the full names and addresses of both the seller and buyer. Some forms ask for the odometer reading at the time of sale, which can protect you if the buyer later claims the mileage was misrepresented.

You should also note the condition of the vehicle — whether it is sold "as-is" with no warranty, or whether you are making any promises about its mechanical condition. If you are selling it as-is, write that clearly. If you are making repairs before the sale, document what you fixed. This prevents the buyer from coming back later claiming you sold them a broken car.

Some states ask for the odometer reading and the title number on the bill of sale. Check your state's DMV website to see if there is an official form, because using the state form can speed up the title transfer process later.

Where to find a bill of sale template

Your state's Department of Motor Vehicles website usually has a free bill of sale form you can read and print. Search "[your state] DMV bill of sale" to find it. If your state does not have an official form, you can use a generic template from a legal document site or create your own.

If you write your own, keep it straightforward. Include the vehicle details, sale price, date, and signatures. You do not need legal language — plain English works fine. The document just needs to show that you sold the car to the buyer for a specific price on a specific date, and that you both agree to that fact.

Some states have specific wording requirements or ask for notarization. A few states require the bill of sale to be notarized (signed in front of a notary public), though most do not. Check your state's DMV website before you sign, because notarization adds a step but is usually free or costs a few dollars at a bank or UPS store.

How to complete and sign the bill of sale

Fill in all the blanks with accurate information. Use the VIN from your title or registration, not from memory. Write out the full sale price in numbers and words — for example, "Two thousand five hundred dollars ($2,500.00)." This prevents disputes about whether you agreed to $2,500 or $25,000.

Both you and the buyer must sign and date the form. Some forms ask for a witness signature, though most states do not require one. If your state's form asks for a witness, have someone else sign to confirm they saw you both sign. Print clearly and use blue or black ink.

Do not sign the bill of sale until you have the money in hand. If you are accepting a check, wait for it to clear before you hand over the keys and title. If you are accepting cash, count it in front of the buyer before you sign. Once you sign, you are confirming the sale happened and the price was paid.

Keeping copies and protecting yourself

Make two copies of the signed bill of sale — one for you and one for the buyer. Keep your copy in a safe place with your other vehicle records. You may need it later if the buyer gets into an accident, racks up parking tickets, or commits a crime with the vehicle before the title is transferred. Your bill of sale proves you no longer owned it on that date.

Take a photo of the signed bill of sale with your phone before you hand it over, so you have a digital backup. Also take photos of the odometer and the overall condition of the vehicle on the day of sale. These photos, combined with the bill of sale, create a strong record of the transaction.

Do not release the title to the buyer until you have the signed bill of sale in your hands. The title is what actually transfers ownership, but the bill of sale is what proves you agreed to sell it. Both documents together protect you.

The difference between a bill of sale and a title transfer

A bill of sale is not the same as a title transfer. The bill of sale records that a sale happened; the title transfer is the legal process that changes the owner's name on the state's records. You need both.

After you sign the bill of sale and hand over the keys, the buyer must take the bill of sale and your signed title to the DMV to register the vehicle in their name. You do not do this step — the buyer does. Your job is to sign the title over to them and provide the bill of sale as proof of the sale.

Some states allow you to notify the DMV that you sold the vehicle, which removes your liability if the new owner gets a ticket or is in an accident. Check your state's DMV website for a "notice of sale" form. Filing this form protects you even if the buyer delays registering the vehicle in their name.

What happens if you sell without a bill of sale

If you sell a car without a bill of sale and the buyer later gets a parking ticket, commits a traffic violation, or is in an accident, the ticket or lawsuit may come to you because the title still shows your name. You will have to prove you no longer owned the vehicle, which is much harder without a written record of the sale.

In some states, you can file a "notice of sale" with the DMV to protect yourself, but this only works if you file it within a certain time frame — usually 10 days. If you do not file and the buyer does not register the vehicle, you remain the registered owner in the state's system.

A bill of sale costs nothing and takes minutes. The risk of selling without one is not worth the small amount of time you save.

Frequently Asked Questions

Do I need a bill of sale if I am selling to a dealer?

No. Dealers have their own paperwork and do not use a bill of sale. They will handle the title transfer as part of their process. A bill of sale is for private sales between individuals.

What if the buyer wants to pay me later?

Do not sign the bill of sale or hand over the keys or title until you have the full payment. A bill of sale documents a completed sale, not a promise to pay. If you let the buyer take the car before paying, you have given up your only leverage.

Can I sell a car without the title in my name?

No. You must own the vehicle to sell it. If the title is in someone else's name, that person must sign the title over to you first, then you can sell it to the buyer. A bill of sale does not transfer ownership — only the title does.

Should I notarize the bill of sale?

Only if your state requires it or if the form you are using asks for it. Most states do not require notarization for a bill of sale. Check your state's DMV website to see if notarization is needed where you live.

What if I lose my copy of the bill of sale after the sale?

Ask the buyer for a copy. If you cannot get one, the photo you took on your phone serves as backup proof. Keep that photo with your vehicle records. If a ticket or accident claim comes to you later, you can show the photo and explain that you sold the vehicle on that date.