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 ownership changed hands. It shows the seller transferred the car to the buyer, lists the vehicle details, records the sale price, and is signed by both parties. Most states do not legally require one, but it protects both you and the buyer by creating a paper trail if questions come up later about who owned the car on a specific date.
The document itself is straightforward — it can be handwritten on plain paper or filled out on a form. What matters is that it includes the key facts: who sold it, who bought it, what car it was, how much was paid, and when the sale happened. You do not need a lawyer or a special form, though some states offer templates you can read for free.
Even in states where a bill of sale is not required by law, creating one is a practical step. It protects you from liability if the buyer gets into an accident before the title transfer is complete, and it gives the buyer proof of purchase if they need it later for insurance or registration.
Key Takeaways
- A bill of sale must include the seller's and buyer's names and addresses, the vehicle identification number (VIN), the sale price, and the date of sale, all signed by both parties.
- Most states do not require a bill of sale by law, but creating one protects both the seller and buyer by documenting the transfer of ownership.
- The document can be handwritten or typed on plain paper — you do not need a special form, though your state's DMV website may offer a template.
- A bill of sale is separate from the title transfer and does not replace it; you still need to file the title with your state's DMV to complete the legal transfer.
What information must go in a bill of sale
The bill of sale should start with the date of the sale at the top. Then list the seller's full name and address, followed by the buyer's full name and address. Be specific — use the address where each person actually lives or does business, not a mailing address if it is different.
Next, describe the vehicle clearly. Include the year, make, model, and color. Most importantly, write out the full Vehicle Identification Number (VIN) — this is the 17-character code found on the driver's side dashboard, the door jamb, or the title itself. The VIN is what ties the document to the actual car and prevents confusion if the buyer or seller has owned multiple vehicles.
Record the sale price in both numbers and words — for example, "$5,500 (five thousand five hundred dollars)". This prevents disputes about what was actually paid. If the car is being sold "as-is" with no warranty, you can add that phrase to the document. Both the seller and buyer must sign and date the bill of sale at the bottom. Some states require the signatures to be notarized, though most do not — check your state's DMV website to be sure.
A straightforward bill of sale template you can use
Here is a basic layout you can copy by hand or type into a document:
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BILL OF SALE Date: _______________ Seller Name: _________________________________ Seller Address: _________________________________ Buyer Name: _________________________________ Buyer Address: _________________________________ Vehicle Year: _________ Make: _________ Model: _________ Color: _________ VIN: _________________________________ Sale Price: $_________ (____________________________ dollars) The seller hereby transfers ownership of the above vehicle to the buyer for the price stated above. The vehicle is sold as-is, with no warranty. Seller Signature: _________________________ Date: _________ Buyer Signature: _________________________ Date: _________ |
This template covers the essentials. You can add a line for the odometer reading if you want to record the mileage at the time of sale, or a note about any known mechanical issues. Keep it straightforward — the goal is to document the basic facts of the transaction, not to create a legal contract.
Where to find your state's bill of sale form
Many state DMV websites offer a free bill of sale form you can read and print. Search "[your state] DMV bill of sale" to find it. Some states call it a "Notice of Sale" or "Vehicle Sales Agreement" instead. The form will be tailored to your state's requirements and may include fields for odometer reading, trade-in information, or other details specific to your state.
If your state does not offer a form online, you can use the straightforward template above or search for a generic bill of sale form. The key is to include the information listed in the previous section — the rest is flexibility. Some buyers and sellers prefer to use a form because it looks more official and ensures nothing is forgotten, while others are comfortable with a handwritten version.
A few states do require specific language or notarization on a bill of sale. Before you sign, check your state's DMV website or call their customer service line to confirm whether there are any special requirements in your state.
How a bill of sale differs from a title transfer
A bill of sale and a title transfer are two separate documents that serve different purposes. The bill of sale is a record between you and the buyer that the sale happened. The title transfer is the legal document filed with your state's DMV that officially changes the registered owner of the car.
You can create a bill of sale on your own, but the title transfer must be filed with the DMV. The buyer will need the bill of sale as proof of purchase when they go to the DMV to register the car in their name. The title itself — the physical document issued by your state — is what proves legal ownership. Without a completed title transfer, the buyer is not the legal owner, even if you have a bill of sale.
In most states, the seller and buyer both sign the back of the title document and submit it to the DMV together, or the buyer submits it alone after the sale. The bill of sale is a supporting document that shows when and for how much the car was sold. Having both protects everyone involved.
Why both the seller and buyer should keep a copy
After both parties sign the bill of sale, make at least two copies — one for the seller and one for the buyer. Each person should keep their copy for their records. The seller should hold onto their copy as proof that they no longer own the car, in case questions come up about liability or registration after the sale.
The buyer needs their copy to show proof of purchase when they register the car with the DMV. If the buyer ever sells the car later, they may need to show the bill of sale to prove they owned it. Insurance companies sometimes ask for a bill of sale when processing a claim or when a new owner is added to a policy.
Keep your copy in a safe place — a file folder, a drawer, or a digital scan. You do not need to file it with any government agency, but having it available protects you if a dispute arises about when the sale occurred or what was agreed to.
Common mistakes to avoid when writing a bill of sale
The most common mistake is leaving out the VIN or writing it incorrectly. Double-check the VIN against the title or the dashboard before you write it down. A wrong VIN can cause confusion later when the buyer tries to register the car.
Another mistake is being vague about the sale price. Write the exact amount, in both numbers and words. If you are accepting a trade-in or partial payment in something other than cash, describe that clearly — for example, "Sale price: $8,000, paid as $3,000 cash and 2005 Honda Civic (valued at $5,000)."
Do not leave the date blank or write it in a way that is hard to read. The date matters because it establishes when ownership changed. If there is an accident or a registration issue between the sale date and the title transfer, the date on the bill of sale proves when you were no longer responsible.
Finally, make sure both parties actually sign the document. A bill of sale with only one signature is incomplete and may not hold up if there is a dispute. If the buyer is not present, you can mail them a copy to sign and return, but both signatures are necessary.
Frequently Asked Questions
Do I have to notarize a bill of sale?
Most states do not require notarization, but a few do. Check your state's DMV website to confirm. If notarization is required, you can have it done at a bank, a notary public's office, or sometimes at your local DMV. Notarization adds a small fee but provides extra proof that both parties signed willingly.
What if I lose my copy of the bill of sale after I sell the car?
If you kept a copy and lost it, ask the buyer for another copy — they should have one. If neither of you has a copy, you can create a new one and both sign it again, dating it with the original sale date. Keep the new copy in a safe place. For future reference, take a photo of the signed bill of sale on your phone before you hand it over.
Can I use a bill of sale instead of transferring the title?
No. A bill of sale documents the sale, but the title transfer is what legally changes ownership with the state. The buyer must file the title with the DMV to become the registered owner. Without a title transfer, you remain the legal owner in the state's records, which can create liability problems for you.
Should I include the odometer reading on the bill of sale?
It is not required, but it is a good idea. Recording the mileage at the time of sale gives both parties a record of the car's condition and can help prevent disputes later. Some state forms include a line for odometer reading; if yours does not, you can add it by hand.
What if the buyer and I disagree on the sale price later?
This is why having a signed bill of sale matters. The document shows what price was agreed to and signed by both parties. If a dispute arises, the bill of sale is evidence of the agreement. Keep your copy in a safe place so you can refer to it if needed.