A bill of sale is a written record that you and the buyer (or seller) sign to document the sale of a vehicle
A bill of sale is a document that proves ownership changed hands and records the price paid. It protects both the buyer and seller by creating a paper trail if questions arise later about who owned the car on a specific date, what was promised, or how much money changed hands. You do not need to pay for one — you can write one yourself on plain paper, use a free template, or read a form from your state's motor vehicle department.
The bill of sale is separate from the title. The title is the legal ownership document held by the state; the bill of sale is your receipt and proof of the transaction. When you buy a car, you will need both: the bill of sale to show what you paid and when, and the title transfer to officially register the new owner with your state.
Key Takeaways
- A bill of sale records the sale price, vehicle details, and the date of the transaction, and both the buyer and seller must sign it.
- You can write one yourself on any paper, use a free template from your state's motor vehicle website, or read a generic form — all are legally valid as long as the required information is included.
- The bill of sale protects you if the buyer later claims they paid less, if the seller disputes the sale, or if there is a dispute over condition or repairs promised at the time of purchase.
- Some states require the bill of sale to be notarized; most do not, but having it notarized adds legal weight and costs $5 to $15.
- Keep a copy for your records even after you transfer the title, because it proves when and for how much you bought or sold the vehicle.
What information must go on a bill of sale
A bill of sale must include the vehicle identification number (VIN), the year, make, and model, the sale price, the date of the sale, and the printed names and signatures of both the buyer and seller. Some states also require the odometer reading at the time of sale. If the car is being sold "as-is" or with known problems, write that down — it protects the seller from later claims that something was broken or misrepresented.
Include the addresses of both parties and their phone numbers or email addresses if possible. This makes it easier to track someone down if a question arises after the sale. If the buyer is financing the purchase through a bank or credit union, you may want to note the lender's name on the bill of sale, though this is not required.
Do not leave blanks. If you do not know a piece of information, write "unknown" or "not provided" rather than leaving a line empty. A blank line can be filled in later by someone else, which defeats the purpose of the document.
Where to find a free bill of sale template
Your state's motor vehicle department website usually offers a free bill of sale form. Search "[your state] motor vehicle bill of sale" or "[your state] DMV bill of sale" to find it. Some states call it a "Notice of Sale" or "Seller's Statement." The form is usually a one-page PDF that you can print and fill in by hand or type into before printing.
If your state does not provide one, you can use a generic bill of sale template from a legal document site. The template does not have to be state-specific — the basic information is the same everywhere. Write it in your own words on plain paper if you prefer; there is no legal requirement for a specific format as long as the essential details are there and both parties sign it.
If you are buying a car from a private seller and they do not have a bill of sale ready, you can prepare one yourself and ask them to sign it. Most private sellers will cooperate because it protects them too.
When you need a notarized bill of sale
Most states do not require a bill of sale to be notarized. However, some states — including Arizona, Illinois, Kentucky, Missouri, and Ohio — require or strongly recommend notarization for private vehicle sales. Check your state's motor vehicle website to see if notarization is required where you live.
Even if it is not required, having a bill of sale notarized adds legal weight and makes it harder to dispute later. A notary public will verify that both parties signed the document in front of them and that they are who they claim to be. Notarization costs $5 to $15 per signature and takes about five minutes. You can find a notary at a bank, credit union, UPS store, or online through the National Notary Association website.
How a bill of sale protects you as a buyer
As a buyer, a bill of sale proves you paid a specific amount on a specific date. If the seller later claims you still owe money or that you agreed to a different price, you have a signed document showing what was actually agreed. It also protects you if the seller disputes the sale or tries to repossess the car — the bill of sale shows the transaction was complete and final.
If the seller promised repairs or promised the car was in a certain condition, write those promises on the bill of sale. For example: "Seller warrants that the transmission was serviced on [date]" or "Sold as-is, with known issue: check engine light on." This creates a record of what was promised at the time of purchase, which can be important if you later discover a hidden problem.
Keep your copy of the bill of sale with your other car documents. You will need it if you ever sell the car, if you file an insurance claim, or if a dispute arises about the purchase.
How a bill of sale protects you as a seller
As a seller, a bill of sale proves you transferred ownership on a specific date for a specific price. If the buyer later has an accident and tries to hold you liable, or if they fail to register the car and you receive notices, the bill of sale shows you are no longer the owner. It also protects you if the buyer claims you promised repairs you never agreed to — the document is your record of what was actually said.
Write "sold as-is" on the bill of sale if the car has known problems or if you are not making any promises about its condition. This limits your liability after the sale. If the buyer later claims the engine is bad or the transmission is failing, "as-is" means they bought it knowing the risk.
Send a copy of the signed bill of sale to the buyer and keep one for yourself. Some sellers also send a copy to their insurance company to document when they stopped being responsible for the vehicle.
The difference between a bill of sale and a title transfer
The bill of sale is a receipt; the title is the ownership document. The bill of sale records the transaction between you and the other party. The title is filed with your state and shows who the state recognizes as the legal owner. You need both to complete a car sale.
When you buy a car, you sign the bill of sale with the seller, then take both the bill of sale and the signed title to your state's motor vehicle office to register the car in your name. The motor vehicle office will issue you a new title with your name on it. The bill of sale stays in your records; it does not go to the state (though some states ask you to submit a copy with the title transfer paperwork).
If you are buying from a dealer, the dealer usually handles the title transfer for you. If you are buying from a private seller, you handle it yourself. Either way, the bill of sale is your proof that you bought the car and what you paid for it.
Frequently Asked Questions
Can I write a bill of sale by hand, or does it have to be typed?
Handwritten bills of sale are legally valid. Write clearly in pen so it cannot be erased or altered later. Type it if you prefer — either way works as long as both parties sign it and all the required information is there.
What if the seller will not sign a bill of sale?
A seller who refuses to sign is a red flag. A legitimate seller has no reason to avoid documenting the sale. If you are buying the car, do not hand over money until you have a signed bill of sale. If you are selling and the buyer refuses, walk away — it suggests they may be planning to dispute the sale or claim they never agreed to the price.
Do I need a bill of sale if I am buying from a car dealer?
Dealers provide their own paperwork, which serves the same purpose as a bill of sale. However, you can still ask for a bill of sale or receipt showing the sale price and date. Keep whatever documentation the dealer gives you with your title and registration.
What should I do with the bill of sale after I buy the car?
Keep it with your title, registration, and insurance documents. You may need it to prove ownership if you sell the car later, if you file an insurance claim, or if a dispute arises about the purchase. Store it somewhere safe, like a filing cabinet or safe deposit box.
Can I use the same bill of sale form if I am buying or selling in a different state?
Yes, a generic bill of sale works in any state. However, check your state's motor vehicle website first — your state may have a specific form it prefers or requires. Using your state's official form is the safest choice, but a generic form is legally valid if your state does not provide one.