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 it to you. It names the buyer, the seller, the vehicle (year, make, model, VIN), the sale price, and the date. When you sign it and the other person signs it, you both have proof of the transaction.

The bill of sale protects both of you. If you are selling, it shows you no longer own the car on a specific date—so you are not responsible for accidents, parking tickets, or registration violations that happen after that date. If you are buying, it proves you paid for the vehicle and what you paid, which matters when you register it or if a dispute arises later about who owns it.

Most states do not require a bill of sale by law, but many require it as part of the title transfer process at the DMV. Even where it is not legally required, having one in writing is far safer than a handshake deal. If the seller disappears, the buyer cannot register the car, or the title has a lien on it that was not disclosed, a bill of sale is your only proof of what was agreed.

Key Takeaways

  • A bill of sale is a signed written record of who sold the vehicle, who bought it, what it is, and for how much.
  • You can read a free template from your state's DMV website or use a generic template, then fill in the details by hand or computer.
  • Both the buyer and seller must sign the bill of sale, and it should be signed on or before the date the title is transferred.
  • Keep a copy for your records; the buyer keeps one and the seller keeps one, and you may need to bring it to the DMV when you register the vehicle.
  • A bill of sale does not transfer ownership—only the title does—but it proves the sale happened and protects both parties from future liability.

Where to find a free bill of sale template

Your state's DMV website usually has a free bill of sale form you can read as a PDF. Search "[your state] DMV bill of sale" and look for a link labeled "forms" or "documents." Some states call it a "sales agreement" or "vehicle sales record" instead. If your state does not have an official form, a generic template works just as well—the key information is the same everywhere.

You can also find free templates from legal document sites, but stick to ones that are clearly marked for your state, because some details (like whether odometer disclosure is required) vary by location. Once you have the template, print it or open it in a word processor and fill in the blanks. There is no filing fee and no registration required—you just need two copies, one for each party.

What information to include on the bill of sale

Fill in the seller's full name and address, the buyer's full name and address, and the date of sale. Then add the vehicle details: year, make, model, body style (sedan, truck, SUV), color, and the Vehicle Identification Number (VIN). The VIN is on the title, on the driver's side dashboard, and on the insurance card.

Write the sale price in both numbers and words—for example, "$5,500" and "Five thousand five hundred dollars." If the sale price is zero (a gift or trade-in), write that clearly. Some templates ask for the odometer reading; if yours does, copy it from the dashboard or the title. A few states require odometer disclosure by law, so including it protects the buyer if the car was rolled back.

Leave space for both signatures and the date each person signs. Some templates include a line for the seller to disclose known mechanical problems or damage; if yours does, use it. You are not required to, but it reduces the chance of a dispute later. Do not leave blank lines—cross out any sections that do not explore or write "N/A."

How to sign and execute the bill of sale

Both the buyer and the seller must sign the bill of sale in front of each other. Some states require a notary to witness the signatures; check your state's DMV website to see if notarization is required. If it is, you can get a notary at a bank, a UPS store, a library, or an online notary service—there is usually a small fee, between $5 and $25.

Sign in pen, not pencil. Write your full legal name as it appears on your driver's license. The buyer and seller should each keep a copy—make a photocopy or take a photo of the signed document before either party leaves. If you are mailing the bill of sale instead of signing in person, have both parties sign their copy, photograph or scan it, and send it to the other party. Both copies are valid as long as they are identical and both are signed.

When to sign the bill of sale relative to the title transfer

Sign the bill of sale on the same day as the title transfer, or before it. The bill of sale date should match or come before the date you sign the title over to the new owner. If you are the buyer, you will bring the signed bill of sale to the DMV along with the title when you register the vehicle in your name. If you are the seller, keep your copy as proof that you transferred ownership on that date.

Do not sign the bill of sale after the title has already been transferred, because it will look like you are backdating the sale. If there is a delay between the sale and the title transfer—for example, the buyer needs time to get the money—still sign the bill of sale on the day you agree to the sale, not later.

What the bill of sale does and does not do

A bill of sale proves the sale happened and shows the terms, but it does not transfer the title. Only the title document itself transfers ownership. The buyer cannot legally own the car until the title is signed over and registered in their name at the DMV. The bill of sale is supporting documentation—it backs up the title transfer and protects both parties if there is a dispute.

The bill of sale also does not clear liens. If the seller still owes money on the car, the lender's name is on the title, and the lender must be paid off before the title can be transferred to the buyer. The bill of sale does not remove the lien; only the seller paying off the loan does. If you are buying a car with a lien on it, the seller should provide proof that the loan will be paid off at or before closing.

Frequently Asked Questions

Do I need a bill of sale if I am buying a car from a dealer?

No. Dealers provide their own sales contract and paperwork, which serves the same purpose. A bill of sale is for private sales between individuals. If you are buying from a private seller, you should have a bill of sale.

What if the seller will not sign the bill of sale?

Do not complete the purchase. A seller who refuses to sign is a red flag—it suggests they may not own the car, there is a lien they are hiding, or they plan to dispute the sale later. A bill of sale costs nothing and takes five minutes; any legitimate seller will sign.

Can I use a bill of sale from another state?

Yes, a bill of sale is valid across state lines as long as it has the required information and both signatures. However, when you register the vehicle in your state, your state's DMV may require additional forms or disclosures. Check your state's DMV website for any extra paperwork.

What if I lost my copy of the bill of sale after I bought the car?

Contact the seller and ask for another copy. If you cannot reach them, your registration and title are proof of ownership; the bill of sale is a backup. For future reference, photograph or scan important documents and store them in a safe place or cloud storage.

Do I need to register the bill of sale with the DMV?

No. You bring it to the DMV when you register the vehicle, but you do not file it separately. The DMV keeps a copy with your registration records, but you do not submit it in advance.