A bill of sale is a written record that you and the seller sign to document the sale of a used car
A bill of sale is a document that proves you bought the car and the seller received payment. It lists the vehicle details, the sale price, the date, and signatures from both you and the seller. Most states do not legally require one, but having a signed bill of sale protects you if a dispute arises later — for example, if the seller claims they never sold you the car, or if you need to prove what you paid when registering the vehicle or filing an insurance claim.
The bill of sale becomes part of your ownership record. When you take it to your state's Department of Motor Vehicles (or equivalent agency) along with the title, you use it to register the car in your name. Some states ask for it; others do not. Either way, keeping a copy is smart because it documents the transaction in your own records.
Key Takeaways
- A bill of sale should include the vehicle identification number (VIN), make, model, year, sale price, date of sale, and signatures from both buyer and seller.
- While most states do not legally require a bill of sale, having one protects you by creating a written record of the transaction and the price paid.
- You can use a template from your state's DMV website, a generic form from a legal document service, or write one yourself as long as it includes all required information.
- The seller should sign the bill of sale before you hand over payment, and you should keep a copy for your records and bring another to the DMV when you register the car.
What information must go on a bill of sale
The bill of sale should clearly identify the car being sold. Include the vehicle identification number (VIN) — a 17-character code found on the driver's side dashboard or the title document — along with the make, model, year, and color. If the car has a known mechanical issue or accident history, some states ask you to note that on the bill of sale, though this is not always required.
Next, record the sale price and the date of the transaction. Write the price in both numbers and words (for example, "$8,500" and "Eight thousand five hundred dollars") to prevent disputes about what was agreed. Include the names and addresses of both the buyer (you) and the seller, and leave space for both of you to sign and print your names. Some people also add the odometer reading on the sale date, which can be useful for your records.
If the car is being sold "as-is" — meaning you accept it in its current condition with no warranty from the seller — you can add that language to the bill of sale. This protects the seller from claims that they misrepresented the car's condition after the sale.
Where to find a bill of sale template
Your state's DMV website often provides a free bill of sale template. Search "[Your State] DMV bill of sale" to find it. If your state does not offer one, you can use a generic template from a legal document service like LegalZoom or Rocket Lawyer, though these may charge a small fee. Many free templates are also available online through automotive sites or legal resource pages.
You do not have to use a template. You can write a bill of sale yourself on plain paper as long as it includes all the key information: vehicle details, sale price, date, and signatures from both parties. Handwritten bills of sale are legally valid in most states. The important thing is that the document is clear, complete, and signed by both you and the seller.
When and how to sign the bill of sale
The bill of sale should be signed before or at the moment you exchange money for the car. Have the seller sign it in front of you, and you sign it as well. Both of you should print your names clearly next to your signatures. If possible, have the transaction witnessed by a third party — a friend, family member, or notary — who can also sign the document. A witness is not required in most states, but it adds another layer of proof if questions come up later.
Make at least two copies: one for you and one for the seller. If you are financing the car through a bank or credit union, the lender may ask for a copy as well. Keep your copy in a safe place along with the title and registration documents.
How the bill of sale connects to vehicle registration
When you register the car with your state's DMV, you will submit the title document signed by the seller. Some states also ask you to submit the bill of sale; others do not. Check your state's DMV website or call them to confirm what documents you need. Even if your state does not require the bill of sale at registration, bring it with you anyway. If there is any question about the sale price or the date of purchase, the bill of sale is your proof.
The bill of sale is also useful for insurance purposes. When you get a quote from an insurance company, they may ask what you paid for the car. Your bill of sale documents that amount. If the car is damaged or stolen later, the insurance company may use the bill of sale to determine the car's value at the time of loss.
What happens if you buy a car without a bill of sale
If you buy a used car and do not get a bill of sale, you can still register it in your name as long as you have the title signed by the seller. However, you lose the written record of the transaction. If a dispute arises — for example, the seller claims they did not receive full payment, or you need to prove what you paid for insurance or tax purposes — you have no document to back up your version of events.
You can create a bill of sale after the fact, but it is much weaker as evidence because it was not signed at the time of sale. The best practice is to get the bill of sale signed before you hand over money or keys.
State-specific requirements and variations
Most states do not legally require a bill of sale for a private car sale, but a few states have specific rules. Some states ask for the odometer reading on the bill of sale; others require it to be notarized in certain situations. A handful of states have their own official bill of sale form that they prefer you to use, though using a different form usually does not invalidate the sale.
Check your state's DMV website for any local requirements before you buy. If you are buying from a dealer rather than a private seller, the dealer will provide their own bill of sale or sales contract, which serves the same purpose. Read it carefully to make sure the price, vehicle details, and any warranties or conditions are correct before you sign.
Frequently Asked Questions
Do I need a bill of sale if I am buying from a car dealer?
No. Dealers provide their own sales contract or bill of sale, which is a legal document that covers the transaction. You do not need to create a separate bill of sale. Make sure you keep a copy of the dealer's document for your records.
Can I use a bill of sale instead of a title?
No. The title is the legal proof of ownership and must be signed by the seller. A bill of sale documents the sale and the price but does not transfer ownership. You need both documents: the signed title to register the car and the bill of sale to record the transaction details.
What if the seller will not sign a bill of sale?
A seller's refusal to sign a bill of sale is a red flag. It suggests they may not own the car outright, the title may be unclear, or they are trying to hide something. Do not complete the purchase until you understand why they are unwilling to sign. A legitimate private seller should have no reason to refuse.
Is a handwritten bill of sale as valid as a printed one?
Yes. A handwritten bill of sale is legally valid as long as it includes all the required information and is signed by both parties. Handwritten documents are common in private car sales and are accepted by most DMVs and insurance companies.
Should I have the bill of sale notarized?
Notarization is not required in most states for a private car sale, but it adds an extra layer of proof that both parties signed the document willingly. If you are concerned about a dispute later, having a notary witness the signatures costs $10 to $25 and can be worth the peace of mind.