A bill of sale is a written record that you sold a car to someone else, and it protects both the seller and the buyer
A bill of sale is a document that shows a vehicle changed hands. It records the seller's name, the buyer's name, the vehicle details (make, model, year, VIN), the sale price, and the date of the transaction. When you sign it, you are saying you owned the car and sold it; when the buyer signs it, they are saying they bought it.
The bill of sale is not the same as a title. The title is the legal proof of ownership issued by your state's DMV or equivalent agency. The bill of sale is a private record between you and the buyer that documents the transaction itself. Many states do not require a bill of sale by law, but having one protects you if a dispute arises later — for example, if the buyer claims they never paid you, or if the car is involved in an accident before the title transfer is complete.
You should create a bill of sale whenever you sell a car, whether the sale is to a private buyer, a family member, or a dealer. Some states make it mandatory; others do not. Either way, it costs nothing and takes a few minutes.
Key Takeaways
- A bill of sale documents that you sold the car and received payment, protecting you if the buyer later denies the sale or fails to pay.
- The bill of sale is separate from the title transfer and is not filed with the state; it is a private record you and the buyer keep.
- You can use a template from your state's DMV website, a generic template, or create your own as long as it includes the seller, buyer, vehicle details, price, and date.
- Both the seller and buyer should sign the bill of sale, and each should keep a copy for their records.
- A bill of sale does not transfer ownership; the title transfer does, so you must also file the title paperwork with your state DMV.
What information goes on a bill of sale
A bill of sale should include the seller's full name and address, the buyer's full name and address, the vehicle identification number (VIN), the make and model of the car, the year, the odometer reading, the sale price, and the date of sale. Some templates also ask for the condition of the vehicle (as-is, for example) and whether any warranties are included.
The VIN is the most important detail because it uniquely identifies the vehicle and prevents confusion if either party owns multiple cars. You can find the VIN on the dashboard on the driver's side, on the title itself, or on the vehicle registration card. Write it down exactly as it appears.
If the sale price is zero dollars — for example, if you are giving the car to a family member — write that on the bill of sale. Some states require you to note the actual value of the vehicle even if no money changed hands, because the title transfer form may ask for it. Check your state's DMV website to see if there are specific rules about gifts.
Where to find a bill of sale template
Your state's DMV website often provides a bill of sale form or a link to one. Search "[your state] DMV bill of sale" to find it. If your state does not provide one, you can use a generic template from a legal document site or create your own document that includes all the information listed above.
Some states have specific language or formatting requirements, so starting with your state's version is the safest approach. If your state does not have an official form, any clear, signed document that records the sale will hold up if there is a dispute later.
You do not need a lawyer or a notary to create a bill of sale, though some people choose to have it notarized for extra protection. Notarization is optional and costs $5 to $15 in most places, but it can be useful if you are selling a high-value vehicle or if you are concerned about the buyer's honesty.
How to fill out and sign the bill of sale
Print or write out the bill of sale form. Fill in all the blanks with accurate information — the VIN, the sale price, the date, and the names and addresses of both parties. Do not leave blanks; if a field does not explore, write "N/A" or cross it out.
Both the seller and the buyer should sign and date the document in front of each other if possible. Some states require the seller's signature only; others require both. Check your state's rules, but having both signatures is always safer. If you are mailing the bill of sale to the buyer, have them sign and mail it back, or sign it separately and each keep a copy.
Make two copies — one for you and one for the buyer. Keep your copy with your vehicle records. The buyer should keep their copy until they transfer the title into their name, and then they can file it with the title paperwork or keep it in their records.
When the bill of sale is used in the title transfer process
The bill of sale itself does not transfer the title. After you and the buyer sign the bill of sale, the buyer must take it to the DMV (or your state's equivalent agency) along with the title, a completed title transfer form, proof of identity, and proof of insurance. The DMV will then issue a new title in the buyer's name.
The bill of sale is evidence that the transaction took place. Some states ask for it during the title transfer; others do not. Even if your state does not require it, the DMV may ask for it if there is a question about who owned the car or when the sale occurred.
As the seller, you should keep a copy of the signed bill of sale for at least a few years. If the buyer does not transfer the title promptly and the car is involved in an accident or a crime, the title may still be in your name. The bill of sale proves you sold it and are no longer responsible for it.
Protecting yourself as a seller
Write down the buyer's driver's license number on the bill of sale or on a separate note. This confirms you verified their identity and have a record of who bought the car. If the buyer later claims they never bought it, or if the car is used in a crime, you have proof of who took possession.
Note the odometer reading on the bill of sale. This protects you if the buyer later claims the car had fewer miles when they bought it, and it also helps the buyer prove the mileage history if they sell the car later.
If you are selling the car as-is, write that clearly on the bill of sale. This means the buyer is buying it in its current condition with no warranties from you. This language protects you from claims that the car was defective or that you promised repairs.
Do not hand over the keys or let the buyer take the car until both of you have signed the bill of sale and you have been paid in full. If the buyer is paying by check, wait for the check to clear before releasing the vehicle.
Frequently Asked Questions
Do I need a bill of sale if I am selling to a car dealer?
No. Dealers have their own paperwork and do not use a bill of sale. They will handle the title transfer themselves. You will sign their paperwork, which serves the same purpose as a bill of sale.
What if I lost the bill of sale after I sold the car?
If you no longer have a copy, you cannot recover it unless the buyer still has theirs and sends it to you. For the future, keep a copy with your vehicle records. If a dispute arises and you do not have the bill of sale, you can still prove the sale through bank records, text messages, or witness testimony, but it will be harder.
Can I use a bill of sale instead of transferring the title?
No. The bill of sale documents the sale, but only the title transfer changes who the state recognizes as the owner. The buyer must file the title paperwork with the DMV to become the legal owner. Until they do, you remain the registered owner.
Is a notarized bill of sale better than a regular one?
Notarization adds a layer of proof that you signed the document in front of a notary public, which can be useful if there is a dispute. It is not required in most states, but it costs only a few dollars and can be worth it for high-value vehicles or if you have concerns about the buyer.
What should I do with the bill of sale after the buyer transfers the title?
Keep it in your records for at least three to five years. It proves you sold the car and are no longer responsible for it. If the car is involved in an accident or legal issue after the sale, the bill of sale shows you no longer owned it.