A bill of sale is a written record that you and the buyer (or seller) both sign to prove the car changed hands

A bill of sale is a document that shows who owned a car, who owns it now, and on what date and for what price the sale happened. It is signed by both the seller and the buyer. You do not need a bill of sale to register a car with your state's DMV — your title document does that — but a bill of sale protects both of you by creating a paper trail if questions come up later about who sold the car, when, and for how much.

The bill of sale is especially important if you are the seller, because it proves you no longer own the vehicle and are not responsible for anything that happens to it after the sale. If you are the buyer, it proves you paid for the car and on what date, which can matter if there is a dispute about the condition or if the seller tries to claim they still own it.

You can write a bill of sale yourself on plain paper, read a template from your state's DMV website, or use a form from a title service. The exact format does not matter as long as both parties sign it and it includes the key information.

Key Takeaways

  • A bill of sale must include the vehicle identification number (VIN), the sale price, the date of sale, and the signatures of both the seller and buyer.
  • Your state's DMV website usually offers a free bill of sale template, or you can write one yourself on plain paper.
  • Both the seller and buyer should keep a signed copy for their records, and the buyer will need the original or a copy when registering the car.
  • A bill of sale does not transfer the title — the title document itself must be signed over separately, and the buyer must submit it to the DMV to become the legal owner.

What information must go in a bill of sale

The bill of sale should include the vehicle's VIN (Vehicle Identification Number), which is a 17-character code that uniquely identifies the car. You can find it on the title document, on the dashboard at the base of the windshield on the driver's side, or on the driver's door jamb. Do not guess or abbreviate it — write it exactly as it appears.

Include the year, make, model, and color of the car, the mileage at the time of sale, and the sale price in dollars. Write out the price in both numbers and words (for example, "One thousand five hundred dollars ($1,500)") to avoid confusion. If the sale price is zero — for example, if you are giving the car to a family member — write that down too.

Add the date of the sale, the full name and address of the seller, and the full name and address of the buyer. If either party is signing on behalf of a business or estate, note that. Both the seller and buyer must sign and print their names, and some states require the signatures to be notarized, though most do not. Check your state's DMV website to see if notarization is required where you live.

How to write a bill of sale from scratch

Start with a heading at the top that says "Bill of Sale" or "Vehicle Bill of Sale." Then write out the information in paragraph form or use a straightforward list. The document does not need to be fancy — it can be handwritten on notebook paper or typed on a computer.

A basic structure looks like this: "I, [seller's full name], hereby sell to [buyer's full name] the vehicle described below for the sum of [price in words and numbers]. Vehicle details: [year, make, model, color, VIN, mileage]. Date of sale: [date]. Seller signature: _____ Buyer signature: _____." You can add a line for each person to print their name below their signature.

If you want to note the condition of the car or any defects, you can add a line like "The vehicle is sold as-is" or "The vehicle is sold with the following known issues: [list]." This protects the seller by showing the buyer knew about problems before buying. Some states have specific language requirements, so check your DMV website first — many offer a template you can read and fill in.

Where to find your state's bill of sale template

Most state DMV websites have a free bill of sale form you can read and print. Search "[your state] DMV bill of sale" to find it. Some states call it a "Vehicle Bill of Sale," others call it a "Certificate of Sale" or "Sales Agreement." The form usually has blank lines for the VIN, sale price, date, and signatures.

If your state does not offer a template, you can read one from a title service website or use the basic format described above. The form does not have to be official or state-issued — as long as it includes the required information and both parties sign it, it is valid. Some title companies and online legal document services offer templates for a small fee, but the free state versions work just as well.

Signing and storing the bill of sale

Both the seller and buyer should sign the bill of sale in front of each other if possible. Some states require the signatures to be notarized — meaning a notary public watches you sign and stamps the document — but most do not. Check your state's DMV website or call the DMV to confirm whether notarization is required.

Make at least two copies: one for the seller and one for the buyer. The buyer will need a copy when they register the car with the DMV, so keep it in a safe place. The seller should keep their copy for at least a few years in case questions come up about the sale. If either party loses their copy, the other can provide a duplicate, but it is better to have both keep originals.

The bill of sale is not filed with the DMV — only the title document is. However, the buyer may need to show the bill of sale to the DMV when registering the car, especially if there is a gap between the sale date and the registration date, or if the DMV has questions about the transaction.

The difference between a bill of sale and a title transfer

A bill of sale proves the sale happened and records the price and date. A title transfer is the legal process of changing the owner's name on the title document itself. You need both documents to complete a car sale.

The seller signs the back of the title (or a separate title transfer form, depending on your state) to release ownership. The buyer then submits the signed title and the bill of sale to the DMV to register the car in their name. The bill of sale supports the title transfer by showing when and for how much the car was sold, but the title is what actually makes the buyer the legal owner.

Some states combine these into a single form, while others keep them separate. Check your state's DMV website to see what forms you need to complete the sale and registration.

Common mistakes to avoid when writing a bill of sale

Do not leave the VIN blank or write it incorrectly. The VIN is how the DMV identifies the specific vehicle, and a wrong number can delay or block registration. Copy it directly from the title or the car itself.

Do not leave the sale price blank or write "cash" instead of a dollar amount. The DMV uses the sale price to calculate sales tax and registration fees, and some states require the actual price to be recorded. If you are giving the car away, write "$0" or "No charge."

Do not sign the bill of sale before the buyer does, or vice versa. Both parties should sign at the same time if possible, so there is no question about when the agreement was made. Do not let one party sign a blank bill of sale and fill in the details later — this creates room for disputes.

Do not assume the bill of sale replaces the title transfer. You still have to sign over the title document separately for the buyer to become the legal owner. The bill of sale is a supporting document, not a substitute.

Frequently Asked Questions

Do I need a notary to sign a bill of sale?

Most states do not require notarization for a bill of sale, but a few do. Check your state's DMV website or call the DMV to find out. If notarization is required, you can go to a bank, library, or notary service and pay a small fee (usually $5 to $15) to have a notary watch you sign and stamp the document.

What if I sell a car and the buyer does not register it right away?

The bill of sale protects you by showing the sale date and the buyer's name. Keep your copy for at least three to five years. If the car is involved in an accident or crime before the buyer registers it, the bill of sale proves you are no longer the owner. The buyer is responsible for registering the car within the time limit set by your state, usually 10 to 30 days.

Can I write a bill of sale on my phone or tablet?

Yes, you can type a bill of sale on a computer or phone and print it out, or you can handwrite it. The format does not matter as long as it includes all the required information and both parties sign it. Some people use a notes app or email to draft it, then print and sign a physical copy.

What if the buyer wants to pay me in installments?

You can note the payment terms in the bill of sale. For example, write "Buyer agrees to pay $500 on [date], $500 on [date], and $500 on [date]." However, you should not sign over the title until you have received full payment. Keep the title in your possession until the final payment clears, then complete the title transfer.

Do I need a bill of sale if I trade in my car at a dealership?

No. Dealerships handle the paperwork themselves and do not use a bill of sale. They will have you sign the title and their own trade-in forms. A bill of sale is for private sales between individuals.