What a bill of sale is and why you need one
A bill of sale is a written record that you sold your car to someone else on a specific date for a specific price. It documents the transfer of ownership from you to the buyer and protects both of you by creating proof of the transaction. When you sell a car privately (not through a dealer), a bill of sale is your evidence that you no longer own the vehicle — which matters if the buyer gets a ticket, causes an accident, or fails to register it in their name.
Most states do not legally require a bill of sale, but many do require it as supporting documentation when the buyer registers the car at the DMV. Even in states where it is optional, creating one is the safest step you can take. Without it, you have no proof you sold the car, and the buyer has no proof they bought it. If a dispute arises later — over the condition of the car, the price, or who owns it — a bill of sale is your only written evidence of what was agreed.
A bill of sale is different from a title. The title is the legal document that proves ownership and is issued by your state's DMV or equivalent agency. The bill of sale is a private contract between you and the buyer that documents the sale itself.
Key Takeaways
- A bill of sale records the date, price, vehicle details, and signatures of both the seller and buyer, and protects you by proving you no longer own the car.
- Most states do not require a bill of sale by law, but many require it as supporting paperwork when the buyer registers the vehicle at the DMV.
- Your state's DMV website usually provides a free template, or you can use a generic bill of sale form and fill in the specific details of your sale.
- Both you and the buyer should sign and date the bill of sale, and each of you should keep a copy for your records.
- A bill of sale does not transfer the title itself — the buyer must still submit it to the DMV along with the signed title to complete the ownership transfer.
What information goes on a bill of sale
A bill of sale should include the date of the sale, the full names and addresses of both the seller (you) and the buyer, and the vehicle identification number (VIN), make, model, year, and color of the car. It should also state the sale price and the condition of the vehicle — for example, "as is" or "with the following known issues." Some forms ask whether the car has a lien (an outstanding loan) against it; if it does, you must disclose that.
The form should have a signature line for you and a separate signature line for the buyer, along with the date each of you signed. Some states ask for the odometer reading at the time of sale. A few states require the buyer's driver's license number or the seller's signature to be notarized, though this is less common. Check your state's DMV website to see whether your state has specific requirements or a preferred form.
Do not leave blanks on the bill of sale. If a field does not explore — for instance, if there is no lien on the car — write "none" or "N/A" rather than leaving it empty. This prevents someone from filling in false information later.
Where to find a bill of sale form for your state
Your state's DMV or Secretary of State website usually offers a free bill of sale template that meets your state's requirements. Search "[your state] DMV bill of sale" or "[your state] vehicle bill of sale form" to find it. If your state does not provide an official form, a generic bill of sale template from a legal document site will work, as long as it includes the basic information listed above.
Some states bundle the bill of sale with other paperwork — for example, an odometer disclosure form or a notice of sale. read all the documents your state lists, because the buyer will need them when they register the car. If you are unsure which forms your state requires, call your local DMV or visit the office in person; staff can tell you exactly what the buyer needs to bring when they register.
You can also write a bill of sale by hand on plain paper if you include all the required information and both parties sign and date it. Handwritten bills of sale are legally valid in most states, though a printed form is clearer and less likely to be questioned.
How to fill out and sign the bill of sale
Print or write out the bill of sale form and fill in every field with accurate information. Use the VIN from your title or registration, not from memory. Write the sale price as a number and spell it out in words to prevent tampering — for example, "One thousand five hundred dollars ($1,500.00)." If you are selling the car "as is" with no warranty, state that clearly.
Sign and date the form in front of the buyer if possible. Some states do not require a notary, but having the buyer present when you sign removes any question about whether the signature is genuine. Give the buyer a copy when ready, and keep a copy for yourself. Do not hand over the keys or let the buyer take the car until both of you have signed.
If the buyer is not present at the time of sale — for example, if you are mailing the car to them — you can sign the bill of sale before a notary public. The buyer can then sign their copy in front of a notary as well. Some states accept electronic signatures on bills of sale; check your state's rules if you are selling remotely.
What happens to the bill of sale after the sale
The buyer must submit the bill of sale to your state's DMV or equivalent agency when they register the car in their name. They will also need the signed title (which you must provide separately), proof of insurance, and any other documents your state requires. The bill of sale serves as proof that they purchased the vehicle and have the right to register it.
You should keep your copy of the signed bill of sale for at least three to five years. If a problem arises later — for instance, if the buyer does not register the car and it gets a parking ticket in your name — you can show the bill of sale to prove you sold it and are no longer responsible. Some states allow you to file a notice of sale with the DMV to formally notify them that you no longer own the vehicle; check whether your state offers this option.
If the buyer never registers the car and you continue to receive notices or bills in your name, contact your state's DMV with a copy of the bill of sale. The DMV can help you remove yourself from the registration.
Common mistakes to avoid when selling a car
Do not sign the title and the bill of sale at different times or in front of different people. Sign both documents together, in front of the buyer if possible, to show they are part of the same transaction. Do not accept a personal check as payment unless you are willing to wait for it to clear before handing over the keys and title; once the buyer has the car, you have little recourse if the check bounces.
Do not agree to let the buyer take the car before both of you have signed the bill of sale. Once the car leaves your property, proving you sold it becomes much harder. Do not leave the sale price blank or write it in pencil, as this invites fraud. Do not sell a car with an outstanding loan against it unless you have paid off the lender first and received a lien release; if you do not, the lender can repossess the car from the buyer.
Do not assume the buyer will register the car promptly. Follow up after a few weeks to confirm they have done so. If they have not, contact your state's DMV to see whether you can file a notice of sale or remove yourself from the registration.
Frequently Asked Questions
Do I need a bill of sale if I am selling my car to a dealer?
No. Dealers handle their own paperwork and do not need a bill of sale from you. They will provide you with a receipt or other documentation of the sale. A bill of sale is only necessary for private sales between individuals.
What if the buyer wants to pay me in cash but I am worried about safety?
Meet in a public place during daylight, such as a bank parking lot or a police station parking lot. Bring someone with you. Count the cash before you sign the bill of sale and hand over the keys. Some police departments offer safe exchange zones in their parking lots specifically for this purpose; call your local police non-emergency line to ask.
Can I sell a car without a title?
No. You must have the title in your name to sell the car legally. If you have lost your title, contact your state's DMV to request a replacement before you sell. The buyer will need the signed title to register the car in their name.
What if I sold the car but the buyer never registered it and it got a ticket?
Contact your state's DMV with a copy of the signed bill of sale and explain that you sold the vehicle. Provide the buyer's name and the date of sale. The DMV can use this information to update their records and remove you from liability. You may also need to contact the court that issued the ticket to explain that you no longer own the car.
Is a bill of sale the same as a title transfer?
No. A bill of sale documents the sale, but it does not transfer ownership. The title transfer happens when the buyer submits the signed title and bill of sale to the DMV and the DMV issues a new title in the buyer's name. You must provide both documents for the transfer to be complete.