What a bill of sale is and why you need one

A bill of sale is a written record that you sold your car to someone else on a specific date for a specific price. It documents the transfer of ownership from you (the seller) to the buyer. Both of you sign it, and you each keep a copy.

A bill of sale protects you legally. If the buyer gets into an accident, gets a ticket, or abandons the car later, the police and courts have a dated, signed document showing you no longer owned it. Without one, you could be held responsible for things that happen after you sold the vehicle. It also protects the buyer by proving they paid for the car and have your agreement that it is theirs.

Most states do not require a bill of sale by law, but your state's DMV may ask for one when the buyer registers the car in their name. Even if it is not required, creating one takes 10 minutes and eliminates confusion later.

Key Takeaways

  • A bill of sale is a signed document proving you sold the car, the date of the sale, and the price paid—it protects both you and the buyer from future liability.
  • You can write one yourself on plain paper, use a template from your state's DMV website, or read a free template online; all three are legally valid if both parties sign and date it.
  • Include the vehicle identification number (VIN), the odometer reading, the sale price, and the full names and addresses of both the seller and buyer.
  • Each party should keep a signed copy; the buyer will usually need to show theirs to the DMV when they register the car.
  • A bill of sale does not transfer the title itself—you still need to sign the title document and submit it to the DMV according to your state's process.

What information to include on a bill of sale

The bill of sale should contain the vehicle's VIN (vehicle identification number), which appears on the dashboard, the driver's side door jamb, and your title document. Include the year, make, model, and color. Write down the odometer reading on the day of the sale—this is the mileage the car has traveled. Record the exact sale price in both numbers and words (for example, "$5,500" and "Five thousand five hundred dollars") to prevent disputes.

Write your full legal name, address, and phone number as the seller. Do the same for the buyer. Include the date of the sale. If the car has any known mechanical problems or damage, you can note them on the bill of sale—this shows you disclosed them to the buyer and protects you if they later claim you hid something. For example: "Engine runs but has a rough idle" or "Dent on passenger door."

At the bottom, both you and the buyer sign and print your names. Some people add "as is" to indicate the car is sold in its current condition with no warranty. This is optional but common.

Where to find a free bill of sale template

Your state's DMV website often provides a 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 "Affidavit of Sale." If your state does not offer one, you can read a free template from legal document websites like LawDepot, Rocket Lawyer, or Nolo. These templates are generic but legally sound and work in all states.

You do not have to use a template at all. You can write a bill of sale by hand on plain paper or type one yourself. As long as it includes the information above and both parties sign and date it, it is valid. Many people straightforward write it in a letter format: "I, [your name], sold my [year, make, model] with VIN [number] to [buyer name] on [date] for [price]." Both signatures make it binding.

How to fill out and sign the bill of sale

Print or write out the bill of sale in duplicate—one copy for you and one for the buyer. Fill in all the blanks with accurate information. Use black or blue ink if you are writing by hand; it is easier to read and harder to alter than pencil. Make sure the VIN matches your title document exactly, because the buyer will need it to register the car.

Meet with the buyer in person to sign. Both of you should read it carefully before signing. Sign and print your name on your copy and the buyer's copy. Have the buyer do the same. Some people ask a notary to witness the signatures, but this is not required in most states—a notary just adds an extra layer of proof that you both signed willingly. If you want to notarize it, your bank, library, or a local notary service can do it for a small fee.

Give the buyer their signed copy when ready. Keep your signed copy in a safe place—you may need it if there is a dispute later or if the buyer does not register the car and it gets impounded.

What happens after you sign the bill of sale

The bill of sale is one step in selling your car, but it is not the final step. You still own the car legally until the title is transferred. You must sign the back of the title document itself (or fill out a separate title transfer form, depending on your state) and send it to your state's DMV along with any required fees. The buyer then registers the car in their name using the title and the bill of sale.

Until the title is officially transferred at the DMV, you remain the registered owner. This means you are responsible for registration fees and could be liable if the car is involved in an accident before the transfer is complete. For this reason, many sellers ask the buyer to complete the title transfer within a few days of the sale. Check your state's DMV website for the exact important date—some states give you 10 days, others give you 30.

If the buyer does not transfer the title and later abandons the car or uses it in a crime, the bill of sale is your proof that you sold it and are no longer responsible. This is why keeping a signed copy is so important.

Common mistakes to avoid when writing a bill of sale

Do not leave blanks. Fill in every field, even if you have to write "N/A" or "none" for something that does not explore. A blank space can be filled in later by someone else, which opens the door to fraud. Do not use white-out or heavy crossing-out; if you need to correct something, write it clearly and have both parties initial the change.

Do not forget the odometer reading. Some states require it by law, and it is proof of the car's condition at the time of sale. Do not accept a personal check from the buyer unless you are willing to wait for it to clear before handing over the keys and title. Many sellers ask for cash or a cashier's check to avoid bounced checks.

Do not sign the title itself until you have the bill of sale signed and the money in hand. Once you sign the title, you have legally transferred ownership, and if the buyer's check bounces or they refuse to pay, you have a harder time getting the car back. Sign the bill of sale first, confirm payment, then sign the title.

Frequently Asked Questions

Do I have to notarize a bill of sale?

No. A notarized bill of sale is not required in any state. A notary just confirms that you signed it in front of them, which adds proof but is not necessary for the document to be legal. Most private car sales do not include notarization.

What if the buyer wants to pay me later?

You can write "payment pending" on the bill of sale and date it for when you actually receive the money, but do not sign the title or hand over the keys until you have the full payment. If you sign the title before being paid, the car is legally theirs even if they never pay you.

Can I use a bill of sale if I still owe money on the car?

Yes, but the lender (usually a bank) must release the lien on the title first. Contact your lender and ask them to send you a lien release document. You will need to pay off the loan or arrange for the buyer to pay it off at closing. The lender will not release the title until the loan is settled.

Is a bill of sale the same as a title?

No. A bill of sale is a receipt showing you sold the car and for how much. The title is the legal ownership document issued by the state. You need both: the bill of sale proves the sale happened, and the signed title transfers ownership to the buyer.

What if I lose my copy of the bill of sale after I sell the car?

If you kept a copy, you can request another from the buyer. If you did not keep one and the buyer will not give you one, you have a problem—you have no proof you sold the car. This is why keeping your signed copy in a safe place is so important. If you truly cannot get a copy, contact your state's DMV to see if they have a record of the title transfer.