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 one to you. It documents the date of the sale, who bought it, who sold it, what vehicle changed hands, and how much money moved between you. When you sign and date it, both of you have proof of the transaction—proof that matters to the DMV, to insurance companies, and to a court if a dispute ever arises.

You need one because it protects you. If you sell a car and the buyer later gets into an accident, the police and the other driver's insurance company need to know you no longer own it. If you buy a used car and the seller claims later that you owe them money, a signed bill of sale shows the transaction was complete. Without one, you have only your word against theirs.

A bill of sale is not the same as a title. The title is the legal document that proves ownership and is registered with your state's DMV. The bill of sale is the receipt—the proof that the ownership transfer happened and on what terms.

Key Takeaways

  • A bill of sale must include the vehicle identification number (VIN), the sale price, the date of sale, and the full names and addresses of both the buyer and seller.
  • Your state's DMV website usually has a bill of sale template you can read and print, or you can write one yourself in plain language as long as it includes all required information.
  • Both the buyer and seller must sign and date the bill of sale in front of a witness or notary public, depending on your state's rules.
  • You should keep a copy for your records and give the original to the other party; the buyer will need it when they register the vehicle in their name.
  • A bill of sale does not transfer the title itself—you still need to complete the title transfer through your DMV, which usually happens within 10 to 30 days of the sale.

Information that must go on the bill of sale

Start with the basics: the date of the sale, written out in full (for example, January 15, 2025, not 1/15/25). Then write the full legal name and current address of the person selling the vehicle and the full legal name and current address of the person buying it. Use the names exactly as they appear on your driver's license or state ID.

Next, describe the vehicle. Write the year, make, model, and body style (sedan, truck, SUV, and so on). Then write the vehicle identification number—the VIN—exactly as it appears on the title or on the driver's side of the windshield. The VIN is 17 characters long and includes both letters and numbers. Do not guess or abbreviate it. Also include the odometer reading at the time of sale, the color, and the license plate number if you have it.

Then write the sale price in both numbers and words. For example: "$5,500 (five thousand five hundred dollars)." Writing it both ways prevents someone from later claiming they misread a number. If the sale included a trade-in or if the buyer is assuming an existing loan, note that clearly—for example, "Buyer assumes existing loan of $3,000" or "Seller accepts 2015 Honda Civic as partial trade-in, valued at $2,000."

Finally, add a line stating that the seller transfers all right, title, and interest in the vehicle to the buyer, and that the seller warrants the vehicle is free of liens (unless you noted a loan above). A lien is a claim against the vehicle—usually a loan. If you still owe money on the car, you must disclose that.

Where to find your state's bill of sale form

Most states provide an official bill of sale template on their DMV website. Go to your state's DMV homepage, search for "bill of sale," and read the PDF. Print it and fill it out by hand or on your computer. Some states make the form mandatory; others make it optional but strongly recommend it. A few states do not provide a form at all, which means you can write your own.

If your state does not have an official form, you can create one yourself using a word processor. The form does not need to be fancy. Write it in plain language, include all the information listed above, and make sure both parties sign and date it. You can also find templates online through legal document services, though you do not need to pay for one—your state's free form or a handwritten version works just as well.

Some states require the bill of sale to be notarized, meaning a notary public must witness the signatures. Check your state's DMV website to see whether notarization is required where you live. If it is, you will need to take the completed bill of sale to a notary before either party signs it. Notaries are available at banks, UPS stores, and some libraries, usually for a small fee of $5 to $15.

How to fill out and sign the bill of sale

Fill in all the blanks with accurate information. Use black or blue ink if you are writing by hand. Do not leave any field blank—if something does not explore (for example, there is no existing loan), write "None" or "N/A" rather than leaving it empty. Blank spaces can be filled in later by someone else, which is a risk.

Once the form is complete, both the buyer and seller must sign it. Some states require a witness to be present when you sign; others require a notary. A few states require both. Check your state's rules before you meet to sign. If a witness is needed, it can be anyone over 18 who is not related to either party and has no financial interest in the sale. The witness signs the form and writes their printed name, address, and phone number.

Sign the bill of sale in front of the witness or notary, not before. Write your full legal name, not just initials. Write the date next to your signature. If the form has a line for printed name, print your name there too. The buyer does the same on their line. Do not sign a blank bill of sale or one with information you have not verified.

What happens after you sign

Make at least two copies of the signed bill of sale—one for you and one for the buyer. If you are the seller, keep your copy in a safe place. You may need it later if there is a dispute about when the sale happened or what was included. If you are the buyer, give your copy to your insurance company when you insure the vehicle, and bring it to the DMV when you register the car in your name.

The bill of sale is not the end of the process. The buyer must then take the signed bill of sale, the title (which the seller signs over), and proof of insurance to the DMV to register the vehicle in their name. This usually takes 10 to 30 days, depending on how busy your local DMV is and whether you go in person or mail the documents. Until the title is transferred at the DMV, the seller is still the registered owner in the state's records, even though the bill of sale proves the sale happened.

If you are the seller, do not sign over the title until you have a signed bill of sale in hand. If you are the buyer, do not hand over money until you have a signed bill of sale and the seller has signed the title. Both documents together protect you.

Common mistakes to avoid

Do not leave the sale price blank or write "as is" instead of a number. The DMV and insurance companies need a price to process the sale. If you are selling to a family member and no money is changing hands, write "$0" or "gift" and note that in the sale price field—do not leave it blank.

Do not use a nickname or shortened version of a name. Write the full legal name exactly as it appears on the ID of the person signing. If the buyer's legal name is "Robert" but they go by "Bob," write "Robert" on the bill of sale. Mismatched names can delay the DMV registration.

Do not sign the bill of sale before all the information is filled in. Do not let the other party take a blank form to fill in later. Do not agree to backdate the sale (writing a date that is not the actual date of the sale). Backdating is fraud and can cause serious problems if there is an accident or insurance claim between the real sale date and the date on the paper.

Do not assume the buyer will handle the DMV paperwork. As the seller, you are responsible for notifying your state that you no longer own the vehicle. If you do not, and the new owner gets into an accident or gets a parking ticket, you could be held liable. Check your state's DMV website for the exact steps to remove yourself from the registration.

Frequently Asked Questions

Do I need a bill of sale if I am trading 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 a trade-in agreement and handle the title transfer through their own process. A bill of sale is for private sales between individuals.

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

Do not hand over the keys or the title. A bill of sale only works if both parties sign it. If the buyer backs out, keep your vehicle and your title. If you have already accepted payment, you may need to return it or pursue the matter through small claims court.

Can I sell a car without a bill of sale?

Technically, yes—a bill of sale is not always legally required. However, it is strongly recommended because it is your only proof that the sale happened and when. Without it, you have no protection if a dispute arises later. Some states do require it, so check your DMV website first.

What if I made a mistake on the bill of sale after we both signed?

Do not cross out information or write over it. Start over with a new form and have both parties sign again. If only a minor detail is wrong (like a misspelled street name), you can write the correction above the error, initial it, and have both parties initial the correction as well. Keep the original signed copy for your records.

Does the bill of sale transfer the title to the buyer?

No. The bill of sale proves the sale happened, but it does not transfer ownership. The buyer must take the bill of sale and the signed title to the DMV to officially register the vehicle in their name. Until that happens, the seller is still the registered owner in the state's system.