What a bill of sale is and why you need one

A bill of sale is a written record that you and the other person sign to prove that a car changed hands and for how much. It is not the same as a title — the title proves who owns the car legally, and the bill of sale proves the transaction happened. You need a bill of sale because it protects both the buyer and the seller: the seller has proof they no longer own the car (so they are not responsible if it is driven badly or gets into debt), and the buyer has proof of the price paid and the condition of the car at the time of sale.

A bill of sale becomes especially important if there is a dispute later — about whether the sale actually happened, what was promised, or what the buyer paid. Without one, it is your word against theirs. Many states do not legally require a bill of sale to transfer a car title, but that does not mean you should skip it. Even in states where it is optional, having one in writing protects you far more than a handshake does.

Key Takeaways

  • A bill of sale is a signed record of the sale between buyer and seller, separate from the title document, and protects both parties by proving the transaction happened and at what price.
  • You can write a bill of sale yourself using a template or form — most states do not require a specific format, though some states have an official form you can use.
  • The bill of sale must include the vehicle identification number (VIN), the sale price, the date, and the signatures of both the buyer and seller, and should describe the car's condition at the time of sale.
  • The buyer should keep the bill of sale when registering the car with the state, and the seller should keep a copy to prove they no longer own the vehicle.
  • A bill of sale is not a title transfer — you still need to file the title with your state's motor vehicle department to legally change ownership.

What information must go on a bill of sale

The bill of sale must include enough detail that anyone reading it knows exactly which car was sold, who sold it, who bought it, and for how much. Start with the vehicle identification number (VIN) — this is the 17-character code on the dashboard and on the title. Include the year, make, model, and color of the car. Write the full legal name and address of the seller and the full legal name and address of the buyer. Write the exact sale price in both numbers and words (for example, "One thousand five hundred dollars ($1,500.00)") to avoid confusion.

Add the date of the sale and have both the buyer and seller sign and print their names. Many people also include a line describing the car's condition — for example, "sold as-is with no warranty" or "with new tires and recent oil change" — so there is no argument later about what was promised. If the buyer is taking out a loan to pay for the car, you can note that on the bill of sale as well. Some states ask for the odometer reading at the time of sale, so include that if you have it.

Where to find a bill of sale form or template

You do not have to use an official form — you can write a bill of sale on plain paper as long as it has all the required information and both people sign it. However, using a template makes the process faster and ensures you do not forget anything. Your state's motor vehicle department website often has an official bill of sale form you can read and print. Search "[your state] bill of sale form" to find it quickly.

If your state does not have an official form, you can find templates online through legal document sites, your state's Secretary of State office, or the American Automobile Association (AAA). Some car dealerships and title companies also have forms on hand. The template you choose does not have to be fancy — it just needs to cover the basics: who, what, when, how much, and signatures. Print it out, fill it in by hand or on a computer, and have both people sign it in front of each other if possible.

How to fill out the bill of sale correctly

Use black or blue pen if you are writing by hand, and write clearly so there is no confusion later. Fill in every blank — do not leave fields empty, because an empty field can be filled in later by someone else. If a field does not explore to your sale (for example, if there is a line for a loan and the buyer is paying cash), write "N/A" or "not applicable" so it is clear the field was not overlooked.

Have the seller fill in and sign their section first, then the buyer. Both people should sign in front of each other if you can arrange it — this is not legally required in most states, but it makes the document much stronger if there is ever a dispute. Each person should keep a copy. The buyer will need their copy when they go to register the car with the state, and the seller should keep theirs as proof that they sold the car and are no longer responsible for it.

The difference between a bill of sale and a title transfer

A bill of sale records that the sale happened. A title transfer is the legal process that changes the ownership record with your state. You need both. The bill of sale is the proof of the transaction between you and the other person. The title transfer is what you file with your state's motor vehicle department to tell the government that the car now belongs to someone else.

After you sign the bill of sale, the buyer takes it (along with the signed title and any other documents the state requires) to the motor vehicle department to register the car in their name. The seller must also sign the back of the title to release ownership. The bill of sale supports that process but does not replace it. If you skip the title transfer, the car is still registered to the seller in the state's records, which creates legal and financial problems for both of you.

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

Without a bill of sale, the seller has no proof they sold the car. If the buyer gets into an accident, racks up parking tickets, or takes out a loan using the car as collateral, the seller can still be held responsible because the state records still show them as the owner. The seller cannot prove they no longer have any claim to the vehicle. The buyer also has no protection — if the seller claims later that the car was never actually sold, or that the buyer owes more money, the buyer has no written proof of the terms of the sale.

A bill of sale does not prevent all disputes, but it makes them much easier to resolve. If there is ever a question about whether the sale happened, what was promised, or what was paid, a signed bill of sale is evidence that a court or insurance company will recognize. Without it, you are relying entirely on memory and trust, which often fails when money is involved.

Frequently Asked Questions

Does my state require a bill of sale?

Most states do not legally require a bill of sale to transfer a car title, but many recommend it and some require it for certain types of sales (for example, private sales versus dealer sales). Check your state's motor vehicle department website to see what documents are required for title transfer in your state. Even if it is not required, having one protects you.

Can I use a bill of sale from the internet?

Yes, as long as the template includes all the required information: VIN, year, make, model, sale price, date, and signatures of both buyer and seller. Your state's motor vehicle department website often has an official template, which is the safest choice. Any template you use should be specific to your state, because some states have slightly different requirements.

What if the buyer does not show up to sign the bill of sale?

Do not hand over the car keys or the title until both of you have signed the bill of sale. The bill of sale is your protection — without it, you have no proof the sale happened. If the buyer will not sign, do not complete the sale. A legitimate buyer will be willing to sign a straightforward document that protects both of you.

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

Most states do not require a notary for a bill of sale, but having one notarize both signatures makes the document stronger if there is ever a legal dispute. A notary is available at banks, title companies, and some UPS stores for a small fee. It is optional but worth considering if the sale is for a large amount of money.

What should I do with the bill of sale after the sale is complete?

The buyer should keep their copy with the title and registration documents — they will need it when they register the car with the state. The seller should keep their copy in a safe place for at least several years as proof that they sold the car and are no longer responsible for it. If there is ever a question about the sale, you will have written proof.