A motor bill of sale is a written record that you and the buyer (or seller) sign to prove that a vehicle changed hands and at what price.
It is not the same as a title. The title is the legal document that proves who owns the vehicle — your state's DMV issues and tracks it. A bill of sale is a receipt you create together that documents the transaction itself: who sold it, who bought it, what vehicle it was, when the sale happened, and how much money changed hands.
You need a bill of sale because it protects both of you. For the buyer, it proves they paid for the vehicle and when, which matters if a lien holder or the previous owner later claims the car is still theirs. For the seller, it proves they no longer own the vehicle after a certain date, which protects them if the buyer gets into an accident, racks up parking tickets, or commits a crime with the car after the sale.
Most states do not require a bill of sale by law, but many DMVs ask for one when you register the vehicle in your name. Some states — including Maryland, Kentucky, and Ohio — do require it. Even where it is optional, using one is the standard practice and costs nothing.
Key Takeaways
- A bill of sale is a written agreement between buyer and seller that documents the vehicle, the sale price, and the date of the transaction.
- It protects the seller by proving they no longer own the vehicle after a specific date, and protects the buyer by proving they paid for it.
- Some states require a bill of sale by law; many others ask for one when you register the vehicle, even if it is not mandatory.
- You can use a form from your state's DMV website, a template from a legal site, or write one yourself as long as it includes the vehicle details, both signatures, and the sale date.
- Both the buyer and seller should keep a signed copy for their records.
What information goes on a bill of sale
A bill of sale needs to identify the vehicle clearly enough that no one can confuse it with another car. Include the vehicle identification number (VIN), the year, make, model, color, and license plate number if you have it. If the vehicle has a salvage title or branded title (flood, lemon law, etc.), note that too.
Write down the sale price in both numbers and words — for example, "Five Thousand Dollars ($5,000.00)" — so there is no room for disagreement later. If the sale included a trade-in, note what was traded and its value. If the buyer is assuming an existing loan, say so and include the lender's name and the loan balance.
Both the buyer and the seller should print their full legal names, addresses, and phone numbers. Sign and date the document. Some states ask for the odometer reading at the time of sale; check your state's DMV website to see if that is required where you live.
Where to find a bill of sale form
Your state's DMV website usually has a bill of sale form you can read and print for free. Search "[your state] DMV bill of sale" to find it. If your state does not provide one, you can use a template from a legal document site like LawDepot or Rocket Lawyer, or read one from the National Association of Secretaries of State.
The forms are straightforward and nearly identical from state to state. They ask for the vehicle information, the names and addresses of both parties, the sale price, and signatures. Some states add a line for the odometer reading or ask you to confirm the vehicle has no outstanding liens.
If you cannot find a form or prefer not to use one, you can write a bill of sale yourself on plain paper. It does not have to be fancy — a handwritten or typed letter that includes the vehicle details, the names of both parties, the sale price, the date, and both signatures is legally valid in most states.
How to fill out and sign a bill of sale
Print or write out the form clearly so every word is legible. Fill in all the blanks with accurate information. If a section does not explore to your sale — for example, there is no trade-in — write "N/A" or cross it out rather than leaving it blank, so no one can add information later.
Both the buyer and the seller should sign the document in front of each other if possible. Some states require the signatures to be notarized; check your state's DMV website to see if that applies to you. If notarization is required, take the unsigned form to a notary public (banks, UPS stores, and some libraries offer this service for a small fee), and both of you sign in front of the notary.
Make at least two copies — one for the buyer and one for the seller. If the sale involved a lender or trade-in, make a third copy for them. Keep your copy in a safe place with your other vehicle records.
When to use a bill of sale
Use a bill of sale whenever you buy or sell a vehicle privately — that is, when you are not buying from or selling to a dealer. If you are buying from a dealer, the dealer will provide their own paperwork, which serves the same purpose.
A bill of sale is also useful if you are giving a vehicle to a family member or friend. Even though no money is changing hands, documenting the transfer protects both of you. Write the sale price as "$0" or "gift," sign it, and keep copies.
If you are selling a vehicle with an outstanding loan, the lender may require a bill of sale as part of the payoff process. Ask your lender whether they need one and what format they prefer.
What happens after you sign a bill of sale
After both parties sign, the buyer should take the bill of sale to the DMV along with the title, proof of insurance, and any other documents the state requires to register the vehicle in their name. The DMV will use the bill of sale to confirm the sale price and date, and to update their records to show the new owner.
The seller should keep their copy of the signed bill of sale for at least three to five years. If a problem arises later — the buyer gets into an accident, the car is involved in a crime, or a lien holder contacts you — the bill of sale proves you no longer owned the vehicle as of the date you signed it.
Some states ask the seller to notify the DMV that the vehicle has been sold, either by submitting a form or by noting it on the title before handing it over. Check your state's DMV website to see whether you need to take this step.
State-specific requirements for bills of sale
Most states treat bills of sale the same way, but a few have specific rules. Maryland, Kentucky, and Ohio require a bill of sale by law. Some states ask for the odometer reading; others do not. A handful of states require the bill of sale to be notarized, while most do not.
Before you sign, visit your state's DMV website and search for "bill of sale requirements" or "selling a vehicle." The site will tell you whether a bill of sale is required, what information must be included, whether notarization is needed, and what the seller must do to notify the state that the vehicle has been sold.
If you are selling a vehicle across state lines — for example, you live in one state and the buyer lives in another — follow the rules of the state where the buyer will register the vehicle, since that is where the bill of sale will be submitted.
Frequently Asked Questions
Do I need a bill of sale if I am buying from a car dealer?
No. Dealers provide their own sales paperwork, which serves the same purpose as a bill of sale. The dealer's paperwork will include the vehicle details, the sale price, and both signatures, and you will submit it to the DMV when you register the car.
What if the buyer and I cannot meet in person to sign?
You can sign separately, but both signatures should be dated on the same day or within a day or two of each other. Some states allow electronic signatures; check your state's DMV website. If notarization is required, each of you will need to sign in front of a notary in your own state, and both notarized copies should be submitted to the DMV.
Can I sell a vehicle if there is still a loan on it?
Yes, but the lender must be paid off before the title transfers to the buyer. The bill of sale should note the lender's name and the loan balance. At closing, the sale proceeds go to the lender first, and any remaining money goes to you. Your lender can tell you the exact payoff amount and whether they require a bill of sale.
What if I lose my copy of the signed bill of sale?
Contact the other party and ask for a copy. If you cannot reach them, you can request a copy from your state's DMV if the vehicle was registered in your name and the sale was recorded. Keep your copy in a safe place with your other vehicle records.
Is a bill of sale the same as a title?
No. A title is the legal ownership document issued by the state; a bill of sale is a receipt that documents the transaction. You need both: the bill of sale proves the sale happened, and the title proves who owns the vehicle. The buyer will submit the bill of sale to the DMV to transfer the title into their name.