What a bill of sale does and why you need one

A bill of sale is a written record that you sold a car to someone else, or someone sold it to you. It documents the date of the sale, the vehicle details, the price paid, and the names and signatures of both the buyer and seller. When you sign one, you are creating proof that the ownership transfer happened on that specific date at that specific price.

You need a bill of sale because it protects both of you. For the seller, it proves you no longer own the car and are not responsible for what happens to it after the sale — accidents, parking tickets, or unpaid tolls. For the buyer, it proves you paid for the vehicle and have a right to register it in your name. Without one, disputes over who owns the car or who was responsible for damage can become expensive and difficult to resolve.

A bill of sale is separate from the title document itself. The title is the legal ownership record kept by your state's motor vehicle department. The bill of sale is the transaction record you create at the moment of sale. Many states do not require a bill of sale by law, but having one is standard practice and protects you whether your state requires it or not.

Key Takeaways

  • A bill of sale documents the date, price, vehicle details, and signatures of both buyer and seller, creating a record of the transaction.
  • The seller uses it to prove they no longer own the car; the buyer uses it to prove they purchased it and have the right to register it.
  • A printable bill of sale template should include the vehicle identification number (VIN), odometer reading, sale price, and signatures from both parties.
  • Your state may have a specific bill of sale form or wording requirements, so check your state's motor vehicle department website before you print.
  • Both the buyer and seller should keep a signed copy for their records, and the buyer should bring theirs when registering the vehicle.

What information to include on a bill of sale

A complete bill of sale includes the vehicle identification number (VIN), which is the unique 17-character code that identifies that specific car. You can find the VIN on the dashboard at the base of the windshield on the driver's side, on the title document, or on the vehicle registration card. Do not use the license plate number instead — the VIN is what ties the document to the actual car.

Include the odometer reading at the time of sale. This is the mileage shown on the dashboard. Write down the exact number and note whether the odometer is known to be accurate or if it has rolled over (gone past 999,999 miles). Some states require you to certify the odometer reading on the bill of sale itself.

Write the sale price in both numbers and words — for example, "$5,500" and "Five thousand five hundred dollars." Include the date of the sale, the full legal names of both the buyer and the seller, and their addresses. Both parties must sign and print their names. If the car is being sold by a business or dealership, include the business name and have an authorized representative sign.

Add any notes about the condition of the car or any defects the buyer is aware of at the time of purchase. For example, "transmission has known issue" or "check engine light is on." This protects the seller by showing the buyer knew about problems before signing. If the sale is "as-is," you can write that phrase on the bill of sale as well.

Finding your state's bill of sale form

Many states provide an official bill of sale form on their motor vehicle department website. Search for "[your state] bill of sale form" or "[your state] DMV bill of sale" to find it. Some states call it a "Notice of Sale" or "Vehicle Sale Form." If your state has an official form, use that version — it will include any wording or fields your state requires, and it will be recognized by the DMV when you register the vehicle.

If your state does not have an official form, a generic printable template will work. Look for one that includes all the fields listed in the previous section: VIN, odometer reading, sale price, buyer and seller names and addresses, date, and signature lines. Many free templates are available online through legal document websites, but make sure the template you choose is designed for your state, since a few states have specific requirements about how the bill of sale must be worded or formatted.

Some states require the bill of sale to be notarized, meaning a notary public must witness the signatures. Check your state's motor vehicle department website to see if notarization is required. If it is, you will need to take the signed bill of sale to a notary before you submit it with your registration paperwork. Notaries are available at banks, UPS stores, and some libraries, usually for a small fee.

How to fill out and sign the bill of sale

Print the form or template and fill it out by hand or on a computer before you meet to sign. Use black or blue ink if you are writing by hand — avoid pencil, which can be erased. Print clearly and legibly so there is no confusion about names, dates, or numbers.

Both the buyer and seller should review the completed form together before signing. Make sure the VIN, odometer reading, sale price, and names are all correct. If either party notices an error, cross it out, write the correction above it, and both parties should initial the change. Do not use white-out or tape — initialing the correction shows it was intentional and agreed to by both sides.

Sign and print your name on the signature lines. The buyer and seller must both sign; a bill of sale signed by only one party is not valid. If the buyer or seller is a business, the person signing must be authorized to sign on behalf of that business — for example, the owner, manager, or designated agent.

Make copies before anyone leaves. Both the buyer and the seller should have a signed copy. The buyer will need their copy when registering the vehicle with the state. The seller should keep their copy as proof they no longer own the car. If either party loses their copy later, having a second copy at home protects them.

When to use the bill of sale in the registration process

The buyer brings the signed bill of sale to the motor vehicle department when registering the car in their name. It serves as proof of purchase and supports the title transfer process. The bill of sale shows the DMV that the buyer paid for the vehicle and has the right to own it.

The seller does not usually submit the bill of sale to the state. Instead, the seller keeps it as a record. However, some states ask the seller to complete a "Notice of Sale" form that goes to the DMV, separate from the bill of sale itself. Check your state's requirements — the motor vehicle department website will tell you whether you need to file anything as the seller, or whether the buyer's registration process is enough.

If the car has a lien (a loan against it), the bill of sale alone is not enough. The lender must release the lien before the title can transfer to the buyer. The seller is responsible for paying off the loan and getting a lien release from the lender. The buyer should not sign the bill of sale until the lien release is in hand, because without it the buyer cannot legally register the car.

Protecting yourself with a bill of sale

Keep your signed copy in a safe place — a file folder, safe deposit box, or digital scan stored in cloud storage. If you are the seller and the car is involved in an accident or crime after the sale, you may need to prove you no longer owned it. The bill of sale with the sale date is your proof.

If you are the buyer, keep your copy until you have successfully registered the car and received the new title in your name. After that, you can keep it with your vehicle records or discard it, but many people keep it for the life of their ownership as part of the car's history.

Do not sign a blank bill of sale or one with missing information. If the buyer or seller is not present, do not sign on their behalf. If the sale price is not agreed on in writing, do not sign. These situations create disputes later that the bill of sale cannot resolve.

Frequently Asked Questions

Do I need a bill of sale if I'm selling a car to a family member?

Yes. Even between family members, a bill of sale protects both of you. It proves the transfer of ownership happened on a specific date and at a specific price, which matters for insurance, registration, and liability. If the car is involved in an accident after the sale, the seller needs proof they no longer owned it.

What if the buyer and seller disagree on the sale price later?

The signed bill of sale is the binding record of what was agreed to. If both parties signed it, that price is what the sale was for. This is why it is important to make sure the price is correct before signing and to keep your copy afterward.

Can I use a bill of sale from another state?

It may work, but using your own state's form is safer. Some states have specific wording or field requirements, and using your state's official form ensures the DMV will accept it without questions. If your state does not have an official form, a generic template designed for your state will work.

Is a bill of sale the same as a title?

No. A bill of sale is the transaction record you create at the time of sale. A title is the legal ownership document issued by the state. The buyer uses the bill of sale to support their process for a new title in their name.

What happens if I lose my copy of the bill of sale?

If you are the buyer, contact the seller and ask for another copy. If the seller no longer has one, you can still register the car, but you may need to provide other proof of purchase, such as a receipt or bank record. If you are the seller, losing your copy makes it harder to prove you no longer own the car if a problem arises later, so ask the buyer for a copy or keep a digital scan.