What a bill of sale is and why you need one

A bill of sale is a written record that you sold a car and the buyer received it. It names the seller, the buyer, the vehicle (year, make, model, VIN), the sale price, and the date. Both parties sign it. It is not the title — the title is the government document that proves ownership — but a bill of sale protects both of you by creating evidence of the transaction.

If you sell a car without a bill of sale, you have no proof you no longer own it. If the buyer gets into an accident, racks up parking tickets, or commits a crime with the vehicle, you could be held liable because the registration and title still show your name. A bill of sale shifts that responsibility to the buyer and gives you a dated record that you sold the car on a specific day for a specific price.

Many states do not legally require a bill of sale, but some do, and even where it is optional, it is the single cheapest way to protect yourself. A printable template takes five minutes to fill out and costs nothing.

Key Takeaways

  • A bill of sale is a written agreement between seller and buyer that documents the vehicle details, sale price, and date of transfer.
  • Some states require a bill of sale as part of the title transfer process; others do not, but having one protects you regardless.
  • A bill of sale does not transfer ownership — only the title does — but it proves you are no longer responsible for the vehicle.
  • You can find free printable templates online, fill one out by hand or on a computer, and have both parties sign and keep a copy.
  • The bill of sale should include the VIN, odometer reading, sale price, and signatures from both buyer and seller.

What information to include on the bill of sale

A bill of sale must have enough detail that there is no confusion about which car was sold and on what terms. Start with the date of the sale. Then list the seller's full name and address, and the buyer's full name and address.

Next, describe the vehicle: year, make, model, body style (sedan, truck, SUV), color, and the Vehicle Identification Number (VIN). The VIN is on the dashboard on the driver's side, visible through the windshield, and also on the title document. Include the odometer reading at the time of sale — this is important because it shows the mileage at transfer and can protect the buyer if the odometer is later found to have been rolled back.

Write the sale price in both numbers and words (for example, "$5,500" and "Five thousand five hundred dollars"). Note whether any items are included — floor mats, spare tire, aftermarket parts — or whether the sale is "as-is." Some templates ask whether the buyer has inspected the vehicle and accepts it in its current condition; this protects the seller from later claims that something was broken.

At the bottom, both the seller and buyer sign and print their names. Some people add the date signed next to the signature. If either party is not the registered owner (for example, a spouse or a business selling on behalf of the owner), that should be noted.

Where to find a free printable template

Free bill of sale templates are available from several sources. Your state's Department of Motor Vehicles website often has an official template or a link to one. Search "[your state] bill of sale" to find it quickly. If your state does not provide one, the American Automobile Association (AAA) offers a free template on its website that works in most states.

Legal document sites like LawDepot and Rocket Lawyer also offer free templates, though they may ask for your email or try to upsell you on paid versions. You do not need a paid version — a straightforward free template is legally sufficient.

You can also create your own from scratch using a word processor. The template does not have to be fancy or official-looking. As long as it includes the information listed above and is signed by both parties, it is valid. Some people write it by hand on a blank piece of paper, and that is legally acceptable too.

How to fill out and sign the bill of sale

Print the template or open it in a word processor and fill in the blanks. Use black or blue ink if you are printing and writing by hand — avoid pencil, which can be erased. Type clearly or write legibly so there is no question about what was written.

Fill in every blank. If a field does not explore — for example, if no aftermarket parts are included — write "N/A" or "none" rather than leaving it blank. This shows the form was completed intentionally, not carelessly.

Once both parties have reviewed the form and agreed to the terms, both the seller and buyer must sign. Some states require the signature to be notarized (witnessed and certified by a notary public), but most do not. Check your state's DMV website to see whether notarization is required. If it is, you and the buyer can visit a bank, library, or notary office together; the notary will watch you both sign and stamp the document.

Make three copies: one for the seller, one for the buyer, and one to keep with your vehicle records. If you are financing the sale or the buyer is getting a loan, the lender may also want a copy.

What happens after you sign the bill of sale

Signing the bill of sale does not transfer the title. The buyer must still go to the DMV to register the vehicle in their name and get a new title. You, as the seller, should also notify your insurance company and your state's DMV that you no longer own the vehicle. Some states have a form for this; others ask you to submit a copy of the bill of sale.

Notifying the DMV is important because it removes you from liability if the buyer gets into an accident or accumulates parking tickets after the sale. Keep your copy of the signed bill of sale for at least three to five years in case a question arises about when you sold the car.

If the buyer does not transfer the title within a reasonable time — usually 10 to 30 days, depending on the state — you may want to follow up. A long delay leaves you on the registration, which is a liability risk. Some states allow you to file a "notice of sale" with the DMV if the buyer has not registered the vehicle within a set period.

Common mistakes to avoid

Do not leave blanks on the form. Every field should be filled in or marked "N/A." A blank field can be filled in later by someone else, which defeats the purpose of having a signed agreement.

Do not use pencil. Use pen so the document cannot be altered after signing. If you make a mistake, cross it out, write the correction above it, and have both parties initial the change. Do not use white-out or erase.

Do not sign the bill of sale before the buyer has given you the money. The bill of sale should be signed at the same time the payment is made and the keys are handed over. If you sign it early, you have no proof that payment actually occurred.

Do not forget to keep a copy for yourself. Give the buyer their copy, but keep one in your records. If a dispute arises later, you will need proof of the sale date and price.

State-specific requirements you should know

Most states do not require a bill of sale, but a few do. Some states require it to be notarized; others do not. A few states have specific wording or fields that must be included. Because requirements vary, check your state's DMV website before you print the template.

If you are selling a car across state lines — for example, you live in one state and the buyer lives in another — use the template from the buyer's state, since that is where the title will be registered. The buyer's state DMV will have the form they need.

If you are selling a vehicle with a lien (a loan still owed on it), the bill of sale should note that the title is being held by the lender until the loan is paid off. The buyer should understand that they do not own the vehicle free and clear until the lender releases the title.

Frequently Asked Questions

Do I have to notarize the bill of sale?

Most states do not require notarization, but a few do. Check your state's DMV website to see whether it is required where you live. If it is not required but you want extra protection, you can have it notarized anyway — it costs $10 to $25 and adds a layer of official verification.

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

If you lose your copy, you can ask the buyer for another signed copy, or you can contact your state's DMV to see whether they have a record of the title transfer. Keeping your copy in a safe place — a file folder, a safe deposit box, or a digital scan — is the best protection.

Can I use the same bill of sale template if I am selling a motorcycle or RV?

A car bill of sale template can be adapted for motorcycles and RVs, but check your state's DMV website first. Some states have separate forms for different vehicle types. The basic information — seller, buyer, VIN, price, date, signatures — is the same, but the form may have different fields.

What if the buyer wants to pay me in installments instead of all at once?

If the buyer is paying in installments, the bill of sale should note the total price, the amount of each payment, the payment schedule, and what happens if a payment is missed. You may also want a promissory note or a security agreement so you have legal recourse if the buyer stops paying. This is more complex than a straightforward bill of sale, so consider consulting a lawyer if the amount is large.

Do I need a bill of sale if I am trading the car in at a dealership?

No. When you trade in a car at a dealership, the dealership handles the paperwork and the title transfer. You do not need a separate bill of sale. The dealership will give you a receipt and handle the DMV paperwork on their end.