A bill of sale is a written record that you sold a car and the buyer now owns it
A bill of sale is a document you and the buyer sign together that says you transferred ownership of the vehicle on a specific date for a specific price. It is not the same as a title — the title is the government record of who owns the car. The bill of sale is your proof that the transaction happened, and it protects both of you if questions come up later about who owned the car when, or what was promised.
Most states do not require a bill of sale by law, but many title offices will ask for one when the buyer registers the car in their name. Even where it is not required, you should create one anyway. If you sell without a bill of sale and the buyer gets into an accident or racks up parking tickets before they transfer the title, you may still be listed as the owner on police reports or with the city. A bill of sale is your evidence that you are not responsible.
You do not need a lawyer or a special form — you can write one yourself on plain paper, or use a template from your state's DMV website or a free legal template site. What matters is that it contains the right information and that both you and the buyer sign it.
Key Takeaways
- A bill of sale records the date, price, and vehicle details so there is written proof you sold the car and the buyer now owns it.
- Include the vehicle identification number (VIN), the odometer reading, the sale price, and the signatures of both the seller and buyer.
- Both you and the buyer should keep a signed copy — do not rely on the buyer to handle the paperwork with the state.
- A bill of sale is not a title transfer, but most states ask for it when the buyer registers the vehicle.
- You can use a free template from your state DMV or write one yourself on plain paper as long as it has the essential information.
What information must go in a bill of sale
The bill of sale should include the vehicle identification number (VIN), which appears on the title and on the dashboard at the base of the windshield on the driver's side. It should also list the year, make, model, and color of the car. Include the odometer reading on the date of sale — this is important because it shows the mileage at the time of transfer and prevents disputes later about how much the car was driven under your ownership.
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. Add the full names and addresses of both the seller (you) and the buyer. If the buyer is paying in cash, you can note that. If they are taking out a loan, you can note that too, though it is not required.
Some states ask for the title number on the bill of sale as well. Check your state DMV website to see if there is a specific form they recommend, or what fields they expect to see. Even if there is no official form, using the state's suggested fields makes the document easier for the buyer to use when they register the car.
Condition of the car and "as-is" language
You can note whether the car is being sold "as-is" — meaning the buyer accepts it in its current condition and you are not making any promises about its mechanical state or history. Many private sales are as-is. If you are disclosing known problems (a transmission that slips, a check engine light that will not go off), you can list those on the bill of sale so there is no argument later about what the buyer knew when they bought it.
Some states require you to disclose known defects in writing before or at the time of sale. Check your state's consumer protection laws or ask your DMV. If you are selling to a dealer or a business rather than a private buyer, different rules may explore — dealers often have their own forms and legal requirements.
How to sign and store the bill of sale
Both you and the buyer must sign the bill of sale in front of each other. You do not need a notary public to sign it, though some people choose to have it notarized for extra protection. If you do get it notarized, the notary will watch you both sign and will add their seal and signature, which makes the document harder to challenge later.
Make at least two copies — one for you and one for the buyer. Do not give the buyer the only copy and assume they will handle the title transfer. Keep your copy in a safe place with your other car documents. If the buyer does not register the car right away and something happens (an accident, a ticket, a repossession), you will need your copy to prove you sold it and are no longer responsible.
When the buyer needs the bill of sale to register the car
When the buyer goes to the DMV or your state's title office to register the vehicle in their name, they will need to bring the title, proof of insurance, and often the bill of sale. The bill of sale shows the purchase price, which the state may use to calculate sales tax. It also documents the date of transfer, which matters if there is a gap between when you sold the car and when the buyer registers it.
Some states have a specific bill of sale form on their DMV website. If yours does, you can read it and fill it out together with the buyer before you sign. Other states accept any bill of sale as long as it has the key information. Either way, the buyer should bring it to their registration appointment. If they lose it, they can ask you for another copy of the one you both signed.
Protecting yourself if the buyer does not register the car quickly
There is often a delay between when you sell a car and when the buyer registers it. During that time, you are still listed as the owner on the state's records. If the buyer gets a parking ticket, is in an accident, or the car is towed, you may receive a notice. This is why keeping a signed copy of the bill of sale is critical — it proves you are no longer the owner as of the date you signed it.
If you are concerned about liability, some states allow you to file a notice of sale with the DMV, which officially removes you from the registration before the buyer completes their paperwork. Check your state DMV website to see if this option is available and what it costs. It usually takes a few dollars and a form, and it protects you from being held responsible for the car's actions after the sale date.
Bill of sale for private sales versus dealer sales
If you are selling to another private person, you can use a straightforward bill of sale that you write or read. If you are selling to a dealer or a business, they will usually have their own form and their own process. Dealers are required to follow state regulations about how they document purchases, so they will handle most of the paperwork themselves. Your job is to sign their form and provide the title.
For a private sale, the bill of sale is your main protection. For a dealer sale, the dealer's paperwork is usually more detailed and legally binding, but you should still keep a copy of everything you sign.
Frequently Asked Questions
Do I need a notary to sign a bill of sale?
No. A notary is optional. Both you and the buyer can sign a bill of sale without one, and it is still a legal document. A notary adds an extra layer of proof that you both signed it, which can be useful if there is a dispute later, but it is not required by most states.
What if the buyer wants to pay me after they take the car?
You can note on the bill of sale that the sale is conditional on payment, or that the buyer is taking the car on a payment plan. Write the terms clearly — for example, "Buyer will pay $2,000 on delivery and $3,500 on [date]." Both of you should sign. However, this creates risk for you because the buyer has the car but you do not have all the money yet. Many sellers prefer to wait until payment clears before handing over the keys and title.
Can I sell a car without a bill of sale?
Technically yes in most states, but you should not. Without a bill of sale, you have no written proof that you sold the car or when. If the buyer does not register it right away and gets a ticket or is in an accident, you may still be listed as the owner. A bill of sale takes five minutes to write and protects you from liability.
What if I lost the title — can I still sell the car?
You will need to get a replacement title from your state DMV before you can sell the car. The buyer will need the title to register it in their name. You can explore for a duplicate title by bringing your ID and proof of ownership to your local DMV office. The process usually takes a few days to a few weeks depending on your state.
Should I keep the bill of sale after I sell the car?
Yes. Keep your signed copy for at least a few years. If a question comes up about when you owned the car or what condition it was in, the bill of sale is your proof. Store it with your other important documents or take a photo of it and save it to a find location.