A bill of sale is a written record that you sold a vehicle to someone else, signed by both of you
A bill of sale documents the transfer of a vehicle from one owner to another. It is not the same as a title — the title proves ownership, while the bill of sale proves the transaction happened and on what terms. You need both when you sell a car: the bill of sale goes to the buyer, and you keep a copy for your records before you sign the title over to them.
Most states do not require a bill of sale by law, but many title offices will not process a transfer without one, and some states (including Maryland, New Hampshire, and Ohio) do require it. Even where it is optional, creating one protects both you and the buyer by documenting the price paid, the condition of the vehicle, and the date of sale. If a dispute arises later — about whether the car had mechanical problems, who owed money on it, or when the sale actually occurred — the bill of sale is your evidence.
You can use a template from your state's DMV website, a generic template from a legal document site, or straightforward write one yourself on plain paper. The format matters less than the content: as long as the essential information is there and both parties sign it, it will hold up.
Key Takeaways
- A bill of sale records the sale price, vehicle details, and the date of transfer, signed by both buyer and seller.
- Some states require a bill of sale to process a title transfer, even if state law does not technically mandate one.
- The bill of sale protects both parties by documenting the condition of the vehicle and whether any money is still owed on it.
- You can read a template from your state DMV, use a generic legal template, or write one yourself — the content matters more than the format.
- Keep a copy for yourself and give the original to the buyer before you sign the title over to them.
What Information Must Go in the Bill of Sale
The bill of sale should include the vehicle identification number (VIN), make, model, year, and color. These details may support there is no confusion about which car is being sold. Include the current odometer reading at the time of sale — this becomes part of the vehicle's history and is required by federal law on the title itself.
Write the full legal names and addresses of both the seller and the buyer, along with their signatures and the date of sale. Include the sale price in words and numbers (for example, "One Thousand Five Hundred Dollars ($1,500.00"). If the sale price is zero — such as when you are gifting the car to a family member — write that explicitly, because some states treat gifts differently for title purposes.
Add a line stating whether the vehicle is sold "as-is" or with any warranties. Most private sales are as-is, meaning the buyer accepts the car in its current condition. If you are making any promises about the vehicle's condition or mechanical state, write those down. Also note whether there is an outstanding loan on the vehicle — if there is, the buyer needs to know that the lender's lien will remain until the loan is paid off, even after the title transfers.
Where to Find a Template
Your state's DMV or Secretary of State website usually offers a bill of sale template designed for your state's requirements. Search "[your state] DMV bill of sale" to find it. Some states have a specific form; others provide a sample document. If your state does not offer one, the American Automobile Association (AAA) and the National Association of Secretaries of State both publish generic templates that work in most places.
Legal document websites like LawDepot and Rocket Lawyer also offer templates, though some charge a small fee. Free versions are usually sufficient for a private sale. read the template, fill in the blanks with the vehicle and party information, print two copies (one for you, one for the buyer), and have both parties sign and date each copy in front of each other.
How to Fill It Out Correctly
Use black or blue ink and print clearly or type the information. Do not leave blanks — if a field does not explore (for example, if there is no lien on the vehicle), write "N/A" or "None" so it is clear the information was not overlooked. Use the legal names that appear on the seller's current title and the buyer's driver's license.
The odometer reading is critical. Write the exact mileage shown on the dashboard at the time of sale. If the odometer is broken or reads over 999,999 miles, note that on the bill of sale. Some states require you to certify that the mileage is accurate, so read the template carefully to see if there is a statement you need to initial or sign separately.
Both the seller and buyer should sign and date the document in each other's presence. Some states require a notary to witness the signatures, though this is uncommon for private vehicle sales. Check your state's template to see if notarization is needed. If it is, you can get a document notarized at most banks, UPS stores, or through a mobile notary service.
What Happens After You Sign
Give the original signed bill of sale to the buyer. Keep a copy for yourself. The buyer will need the bill of sale when they go to the DMV to register the vehicle in their name and transfer the title. You will need your copy if there is ever a dispute about the sale or if the buyer fails to register the vehicle and it is later involved in an accident or crime.
After the buyer has the bill of sale, you can sign the title over to them. The title is a separate document — it is the legal proof of ownership. The bill of sale is the record of the transaction. Both are necessary for a complete transfer. Do not sign the title until you have a signed bill of sale and have received payment in full.
If you are selling a vehicle with an outstanding loan, the lender's name and lien information will appear on the title. The buyer cannot become the legal owner until that lien is released, which happens only after the loan is paid off. The bill of sale should note this so the buyer understands they cannot register the vehicle until the lien is cleared.
Common Mistakes to Avoid
Do not sign the title before you have a signed bill of sale and full payment. Once you sign the title, you have legally transferred ownership, and you have no recourse if the buyer does not pay or if they damage the vehicle. The bill of sale is your proof that the sale occurred on a specific date for a specific price.
Do not leave the odometer reading blank or estimate it. The odometer reading is a federal requirement and becomes part of the vehicle's permanent record. If it is wrong, it can affect the vehicle's resale value and may raise questions about whether the mileage was rolled back.
Do not accept a personal check or a promise to pay later. Insist on cash, a cashier's check, or a bank transfer that clears before you hand over the keys and sign the title. Once the buyer has the vehicle, collecting payment becomes much harder.
When You Buy a Used Car From Someone Else
If you are the buyer, ask the seller for a bill of sale before you hand over any money. Make sure the VIN on the bill of sale matches the VIN on the vehicle itself (check the dashboard and the title). Verify that the seller's name on the bill of sale matches the name on the title — if it does not, the seller may not be the legal owner and cannot sell it to you.
Check the odometer reading on the bill of sale against the actual odometer in the car. If they do not match, ask why. Request a copy of the vehicle's maintenance records or service history if available. Take the bill of sale with you to the DMV when you register the vehicle in your name.
Frequently Asked Questions
Do I need a bill of sale if I am selling a car to a family member?
Yes. Even for a gift or a sale to a relative, a bill of sale documents the transfer and protects both of you. Write the sale price as zero if it is a gift, or write the actual amount if money changed hands. Your state's DMV may treat gifts differently for registration purposes, so check your state's rules.
What if the buyer does not show up to sign the bill of sale?
Do not release the vehicle or sign the title. A bill of sale is only valid when both parties sign it. If the buyer backs out or disappears, you remain the legal owner. If they take the car without signing, you can report it as stolen.
Can I use a bill of sale from a different state?
Yes, as long as it contains all the required information. Your state's DMV may prefer its own form, but a generic bill of sale from another state will usually be accepted. Call your local DMV to confirm what they need before you complete the sale.
What if there is a lien on the vehicle I am selling?
The bill of sale must state that a lien exists and include the lender's name. The buyer cannot become the legal owner until the lien is released, which happens only after the loan is paid in full. The buyer should understand this before they agree to purchase the vehicle.
Should I notarize the bill of sale?
Most states do not require notarization for a private vehicle sale, but some do. Check your state's DMV website or call them to confirm. If notarization is required, both parties must sign in front of a notary public, who will then stamp and sign the document.