What a bill of sale is and why you need one

A bill of sale is a written record that you sold a vehicle to someone else, or that someone sold one to you. It documents the date of the sale, the vehicle details (make, model, year, VIN), the sale price, and the names and signatures of both the buyer and seller. A bill of sale protects both parties by creating proof of the transaction and showing who owned the vehicle at what point in time.

You need a bill of sale when you sell a car privately — not through a dealer. It becomes part of the title transfer paperwork you file with your state's motor vehicle department. Without it, the seller has no proof they no longer own the vehicle, and the buyer has no proof they do. If something goes wrong later — the car breaks down, there's a lien the seller didn't disclose, or the buyer doesn't pay — a bill of sale is your only written evidence of what was agreed to.

Most states do not require a bill of sale by law, but they do require it as part of the title transfer process. Some states make it mandatory. Either way, creating one costs nothing and takes 10 minutes.

Key Takeaways

  • A bill of sale is a written record of who sold the vehicle, who bought it, when, for how much, and the vehicle's VIN — it protects both buyer and seller.
  • You can read free templates from your state's motor vehicle department website, or write one yourself using basic information: date, names, vehicle details, price, and signatures.
  • Both the buyer and seller should sign and keep a copy; some states require the seller to give the original to the buyer or file it with the title transfer.
  • A bill of sale does not transfer ownership — the title does — but it proves the sale happened and is required to transfer the title.
  • If you buy a used car privately, ask the seller for a bill of sale before you hand over money; if you sell one, keep a copy for your records.

Where to find a free bill of sale template

Your state's motor vehicle department website usually has a free bill of sale form you can read and print. Search "[your state] bill of sale form" or go to your state's DMV or Secretary of State website and look under "forms" or "title transfer." Some states call it a "vehicle sales agreement" or "notice of sale."

If your state does not provide one, you can use a generic template from a legal forms site or write one yourself. The form does not have to be fancy or official-looking — it just needs to include the required information. Many states accept a handwritten bill of sale as long as both parties sign it.

A few states have specific requirements about what must be on the form. For example, some require the odometer reading, the condition of the vehicle (as-is or with warranty), or a statement that the seller discloses any known defects. Check your state's requirements before you read a template, or call your local motor vehicle office to ask what information they need to see on the bill of sale when you file the title transfer.

What information to include on the bill of sale

Write or type the following information on the bill of sale:

  • Date of sale
  • Seller's full name and address
  • Buyer's full name and address
  • Vehicle year, make, model, and color
  • Vehicle Identification Number (VIN)
  • Odometer reading (required in most states)
  • Sale price
  • Payment method (cash, check, financing, etc.)
  • Condition of the vehicle (as-is, with warranty, etc.)
  • Seller's signature and date
  • Buyer's signature and date

Some states also ask for the license plate number, the title number, or a statement that the seller discloses any liens or damage to the vehicle. If your state's template includes these fields, fill them in. If you are writing your own, you can add them or leave them out — the core information above is what matters most.

Do not leave the sale price blank or write "as-is" instead of a number. The price is part of the legal record and is needed for title transfer and tax purposes. If the vehicle is a gift, write "gift" or "$0" and note that in the document, but do not leave it blank.

How to sign and file the bill of sale

Both the buyer and the seller must sign the bill of sale in front of each other. Some states require the signatures to be notarized (witnessed and certified by a notary public), but most do not. Check your state's requirements before you sign.

Make at least three copies: one for the seller, one for the buyer, and one to file with the title transfer paperwork. The buyer will need their copy when they go to the motor vehicle department to register the vehicle in their name. The seller should keep their copy as proof they no longer own the vehicle.

When you file the title transfer, you will submit the bill of sale along with the original title, a completed title transfer form, and proof of payment (if required). The motor vehicle department will keep the bill of sale in their records. Some states ask the seller to file it; others ask the buyer to file it. Your state's title transfer instructions will say which.

What happens if you sell a car without a bill of sale

If you sell a vehicle without a bill of sale, you have no written proof that the sale happened or that you transferred ownership. If the buyer does not register the vehicle and gets into an accident, you could still be listed as the owner and held liable. If the buyer does not pay you, you have no signed agreement to show in court.

If you are the buyer and you purchase a vehicle without a bill of sale, you have no proof you own it. If the seller claims they never sold it to you, or if there is a lien on the title that the seller did not disclose, you have no documentation to protect yourself.

Creating a bill of sale takes 10 minutes and costs nothing. It is worth doing even if your state does not require it.

Selling a vehicle with an outstanding loan or lien

If you still owe money on the vehicle, the lender holds a lien on the title — meaning they have a legal claim to the vehicle until the loan is paid off. You cannot transfer a clear title to the buyer until the lien is removed.

On the bill of sale, disclose that there is a lien and state the lender's name and the amount owed. The buyer needs to know this before they buy. In most cases, the sale proceeds go to the lender first to pay off the loan, and the remaining money goes to you. The lender will then release the lien and send the title to the buyer or to the motor vehicle department.

Work with your lender before you sell to understand the payoff process. Some lenders can release the lien within days; others take longer. Make sure the buyer understands they will not receive a clear title until the lien is released, and put that in writing on the bill of sale.

Frequently Asked Questions

Do I need a bill of sale if I'm selling through a dealership?

No. Dealerships handle the paperwork and create their own sales agreement. You will sign documents at the dealership, and they will file the title transfer. You do not need to create a separate bill of sale.

Can I use a bill of sale I found online, or do I have to use my state's form?

You can use a generic template from online, but using your state's official form is safer because it includes everything your motor vehicle department requires. If you use a generic form, check your state's requirements first to make sure you are not missing any required information.

What if the buyer and I disagree on the sale price after we sign?

The bill of sale is a binding agreement once both parties sign it. If there is a dispute, the signed bill of sale is the legal record of what was agreed to. This is why it is important to make sure the price is correct before you sign.

Do I need to get the bill of sale notarized?

Most states do not require notarization for a bill of sale. A few do. Check your state's motor vehicle department website or call them to ask. If notarization is required, you can get it done at a bank, a notary public's office, or sometimes at a UPS store for a small fee.

What if I lost my copy of the bill of sale?

If you filed it with the motor vehicle department, you can request a copy from them. If you did not file it and you lost your copy, contact the other party (buyer or seller) and ask them for their copy. Keep that copy in a safe place with your vehicle records.