A bill of sale is a written record that you sold a car and the buyer received it
A bill of sale is a document that proves the transfer of a vehicle from one person to another. It records who owned the car, who bought it, when the sale happened, and for how much money. Both the seller and buyer sign it. The bill of sale is not the same as a title — it does not transfer ownership to the buyer's name at the DMV — but it is proof that the sale took place and protects both of you if questions come up later.
Most states do not require a bill of sale by law, but many DMVs ask you to bring one when you register the car in the new owner's name. Some states, including Connecticut, Florida, Kentucky, and Maryland, do require it. Even where it is not required, creating one is a practical step that takes 15 minutes and costs nothing.
Key Takeaways
- A bill of sale records the sale date, vehicle details, seller and buyer names, and the sale price, and both parties sign it.
- Most states do not legally require a bill of sale, but your DMV may ask for one when the buyer registers the vehicle.
- You can write a bill of sale by hand on plain paper or read a template from your state DMV website or a free legal template site.
- Keep a copy for your records after the sale, and give the original to the buyer so they have proof of purchase when they go to the DMV.
- The bill of sale protects you as a seller by showing you no longer own the vehicle and are not responsible for it after the sale date.
What information must go on a bill of sale
A bill of sale should include the vehicle identification number (VIN), the make, model, year, and color of the car. Write down the odometer reading on the day of sale. Include the full legal names and addresses of both the seller and the buyer, and the date of the sale. Write the sale price — the actual amount paid, not "as is" or blank. Both the seller and buyer must sign and print their names.
Some states ask for additional details. A few require the title number or the condition of the vehicle (for example, "salvage" or "rebuilt"). Check your state DMV website to see if there is a specific form they prefer or require. If your state has an official form, use that; if not, a straightforward handwritten document with the information above is legally valid in most places.
Where to find a bill of sale template
Your state DMV website often has a bill of sale form you can read and print. Go to your state's DMV site, search for "bill of sale," and look for a PDF or Word document. States like California, Texas, New York, and Ohio all post templates online.
If your state does not offer one, free legal template sites like LawDepot, Rocket Lawyer, and the National Association of Secretaries of State all have state-specific bill of sale forms. You can also write one by hand on plain paper — there is no legal requirement that it be typed or printed. The key is that it contains the required information and both parties sign it.
How to fill out and sign the bill of sale
Fill in all the blanks with accurate information. Use the vehicle's current odometer reading, not an estimate. Write the actual sale price — if the buyer paid $8,500, write $8,500, not "negotiable" or "cash." If you are selling the car "as is" with no warranty, you can add a line stating that, but it is not required for the bill of sale itself.
Both you and the buyer must sign the document in front of each other. Some states require the signatures to be notarized, but most do not. Check your state DMV website to see if notarization is required where you live. If it is, you can have the document notarized at a bank, a notary public's office, or sometimes at your DMV. The notary will charge a small fee, usually $5 to $15.
When to create the bill of sale
Create the bill of sale on the day of the sale, before you hand over the keys and the title. Both of you should have time to read it and ask questions. Do not sign it until you are certain about the sale price and the buyer's information is correct. Once signed, make two copies — one for you and one for the buyer.
If you are selling a car privately, the bill of sale should be signed at the same time you hand over the title. If you are trading in a vehicle at a dealership, the dealer will handle the paperwork and you will not need to create a separate bill of sale. The dealer's paperwork serves that purpose.
Why you need a copy for your records
Keep a signed copy of the bill of sale for at least three to five years. It proves you sold the vehicle on a specific date and are no longer the owner. If the buyer gets into an accident, receives a parking ticket, or the car is involved in a crime after the sale, you have proof that you no longer owned it. This protects you from liability and from being contacted by law enforcement or debt collectors about the vehicle.
If you sell the car and the buyer does not register it right away, you may still receive registration notices or bills in your name. Having a signed bill of sale shows the DMV that you transferred ownership, and you can use it to request that your name be removed from the registration.
What happens if you lose the bill of sale
If you signed a bill of sale but lost your copy, contact the buyer and ask them to send you a photo or scan of their copy. If the buyer lost theirs, you can create a new one together and both sign it again, dating it with the original sale date. Write a note on it saying "duplicate" or "replacement copy."
If neither of you has a copy and questions come up later, you can contact your state DMV and explain the situation. The DMV record of who the title is registered to will show the transfer, though it may take longer to resolve. This is why keeping a copy is important — it saves time and prevents confusion.
Frequently Asked Questions
Do I have to notarize a bill of sale?
Most states do not require notarization. Check your state DMV website to confirm. If notarization is required in your state, you can have it done at a bank, a notary public's office, or sometimes at your DMV for a small fee. If it is not required, a signed document without notarization is legally valid.
What if the buyer and I disagree on the sale price later?
The bill of sale is the record of what you both agreed to on the day of sale. If a dispute arises after you have both signed, the bill of sale is the proof of the agreed price. This is why it is important to write the actual amount paid, not a vague term like "negotiable" or "best offer."
Can I sell a car without a bill of sale?
In most states, yes — a bill of sale is not legally required. However, your DMV may ask for one when the buyer registers the vehicle. Even if it is not required, creating one protects both of you by documenting the sale and the date of transfer. It takes 15 minutes and costs nothing.
What if I am selling a car with a loan still on it?
You can still create a bill of sale, but the title will show the lender's name until the loan is paid off. The buyer should know this before they buy. Once the loan is paid, the lender will release the title, and the buyer can register it in their name. Mention the lien on the bill of sale so there is no confusion later.
Should I keep the original or give it to the buyer?
Make two copies and give one to the buyer. The buyer needs it to show the DMV when they register the vehicle. Keep the other copy for your records for at least three to five years. Both copies should be signed by both of you.