What a bill of sale does and when you need one

A bill of sale is a written record that you sold a vehicle to someone else. It documents the sale price, the vehicle details, the date, and the signatures of both the seller and buyer. When you sell a car privately — not through a dealer — a bill of sale protects both of you by creating proof of the transaction.

Most states do not require a bill of sale by law, but your state's Department of Motor Vehicles may ask for one when the buyer registers the vehicle in their name. Even where it is not legally required, you should use one anyway. For the seller, it proves you no longer own the car and are not responsible for what the buyer does with it after the sale. For the buyer, it proves they paid for the vehicle and have the right to register it.

You do not need a bill of sale if you are trading in a vehicle at a dealership — the dealer handles all the paperwork. You do need one for any private sale, whether you are selling to a friend, a family member, or a stranger.

Key Takeaways

  • A bill of sale is a written record of a private vehicle sale that protects both the seller and buyer, even in states where it is not legally required.
  • You can use a form provided by your state's Department of Motor Vehicles, read a template online, or write one yourself as long as it includes the vehicle details, sale price, date, and both signatures.
  • The seller should keep one copy, the buyer should keep one copy, and you may need to submit a third copy to your state's DMV when you transfer the title.
  • A bill of sale does not transfer ownership — the title document does — but it serves as proof that the sale took place and at what price.

Where to find a bill of sale form

Your state's Department of Motor Vehicles website usually offers a free bill of sale form you can read and print. Search "[your state] DMV bill of sale" to find the official version. Using your state's form is the safest choice because it includes all the fields the DMV expects to see if you need to submit it later.

If your state does not provide a form, you can read a template from a legal document website or use a generic vehicle bill of sale template. These are widely available and usually free. The form does not have to be fancy — a handwritten bill of sale on plain paper is legally valid as long as it contains the required information.

Some title transfer services and online legal document sites offer bill of sale forms for a small fee, but there is no reason to pay for one. The free versions from your DMV or generic templates contain the same information.

What information to include on the form

A complete bill of sale must include the vehicle identification number (VIN), the make, model, and year of the vehicle, the odometer reading, and the sale price. It should also show the date of the sale, the full names and addresses of both the seller and buyer, and the signatures of both parties. Some forms ask for the license plate number as well.

The sale price is important — write the actual amount of money that changed hands, even if part of the payment was in cash and part was a check or transfer. If you are selling the vehicle "as-is" with no warranty, many forms have a space to note that. If there are known mechanical problems or damage, you can describe them on the form to protect yourself from later disputes.

Both the seller and buyer should sign and date the form. Some states require the signatures to be notarized, though most do not. Check your state's DMV website to see whether notarization is required in your state before you sign.

How many copies you need and where they go

You should make at least three copies of the completed bill of sale: one for the seller, one for the buyer, and one to submit with the title transfer paperwork if your state requires it. Print or write on the original, then make photocopies so both parties have a signed version.

The seller keeps one copy in their records. The buyer keeps one copy with the title documents and registration paperwork. If your state's DMV asks for a bill of sale when the buyer registers the vehicle, the buyer will submit the third copy along with the title process. Some states do not require submission to the DMV, so check your state's title transfer process to know whether you need to send a copy in.

Keep your copy of the bill of sale for at least three to five years. If a question comes up later about when you sold the vehicle or what condition it was in, you will have proof.

The difference between a bill of sale and a title

A bill of sale and a title are two different documents that serve different purposes. The title is the official government document that shows who owns the vehicle. The bill of sale is a record of the transaction — proof that the sale happened and at what price.

When you sell a car, you sign the title over to the buyer, which transfers ownership. The bill of sale documents that transaction. The buyer then takes both the signed title and the bill of sale to the DMV to register the vehicle in their name. Without the title, the buyer cannot legally own the car. Without the bill of sale, there is no written proof of the sale, which can create problems if either party disputes the transaction later.

What to do if you lose the bill of sale after the sale

If you signed a bill of sale but lost your copy, you can ask the buyer for a copy of theirs. If the buyer no longer has it either, you can recreate one from memory — write down the date, the vehicle details, the sale price, and have both parties sign it again. This is not ideal, but it is better than having no documentation at all.

If you never created a bill of sale and now need one for some reason — perhaps the buyer is having trouble registering the vehicle — contact the buyer and ask them to sign one with you. Explain that it will help them complete the registration. Most buyers will cooperate because they need the documentation too.

Frequently Asked Questions

Do I have to notarize a bill of sale?

Most states do not require notarization, but a few do. Check your state's DMV website to see whether notarization is required where you live. If it is, you can have the document notarized at a bank, a UPS store, a library, or a notary public's office. The cost is usually between five and fifteen dollars.

Can I write a bill of sale by hand instead of printing one?

Yes. A handwritten bill of sale is legally valid as long as it includes all the required information: the vehicle details, the sale price, the date, and both signatures. Handwriting is actually common for private vehicle sales. Just make sure both parties can read it clearly.

What if the buyer does not want to sign the bill of sale?

You should not complete the sale without one. A bill of sale protects you by proving you no longer own the vehicle. If the buyer refuses to sign, it is a red flag that something is wrong. Do not hand over the keys or the title until both of you have signed the bill of sale.

Can I sell a vehicle without a bill of sale?

Technically, yes — most states do not legally require one. However, you should not. Without a bill of sale, you have no proof you sold the car, and you could be held responsible if the buyer gets into an accident, racks up parking tickets, or commits a crime with the vehicle. A bill of sale is free to create and takes ten minutes. It is worth the time.

Does a bill of sale mean I no longer own the car?

No. The title transfer means you no longer own the car. The bill of sale is just proof that you sold it. You remain the legal owner until the buyer registers the vehicle in their name at the DMV. That is why you must sign the title over to the buyer — the bill of sale alone does not transfer ownership.