A bill of sale is a written record that you sold or bought a vehicle, signed by both the seller and buyer
A motor vehicle bill of sale is a document that proves a vehicle changed hands. It records the seller's name, the buyer's name, the vehicle details (make, model, year, VIN), the sale price, and the date of the transaction. Both parties sign it. The bill of sale is not the same as the title—it does not transfer ownership. What it does is create a paper trail that protects both of you if something goes wrong after the sale.
Most states do not require a bill of sale by law, but many require you to submit one to the DMV when you register the vehicle in your name. Even where it is not legally required, you should use one anyway. It protects you from liability if the previous owner gets a ticket or is involved in an accident after you bought the car. It also protects the seller by proving they no longer own the vehicle on a specific date.
You can read a free bill of sale template from your state's DMV website, or use a generic one that works in most states. The specific format matters less than having the essential information and both signatures. Some states have their own official form; check your DMV website to see if yours does.
Key Takeaways
- A bill of sale is a signed record of the sale that protects both buyer and seller, even though it does not transfer the title itself.
- Most states do not legally require a bill of sale, but many require you to submit one to the DMV when you register the vehicle.
- Your state's DMV website usually has a free official form, or you can use a generic template as long as it includes the VIN, sale price, date, and both signatures.
- Keep a copy for your records and give a copy to the buyer; the seller should also keep one in case questions arise later.
- A bill of sale does not transfer ownership—you still need to transfer the title separately through your state's DMV.
What information must go on the bill of sale
The bill of sale needs enough detail that anyone reading it can identify the exact vehicle and the exact transaction. Start with the names and addresses of both the seller and the buyer. Then add the vehicle identification number (VIN), which you can find on the dashboard on the driver's side, on the title itself, or on the registration card. Include the year, make, model, and color. Add the odometer reading at the time of sale—this is important because it shows the condition of the vehicle at handoff and protects the buyer if the odometer is later found to have been rolled back.
Write the sale price in both numbers and words (for example, "$5,000" and "Five Thousand Dollars"). This prevents disputes about what was actually agreed. Add the date of the sale. If any equipment or parts are included in the sale—a spare tire, floor mats, a roof rack—list them. If the buyer is assuming an outstanding loan on the vehicle, note that too. At the bottom, both the seller and buyer sign and date the document. Some states require the signatures to be notarized; check your state's DMV website to see if yours does.
Where to find a bill of sale template for your state
Your state's DMV website is the first place to look. Search "[Your State] DMV bill of sale" and you will usually find an official form. Some states call it a "bill of sale," others call it a "vehicle sales agreement" or "motor vehicle sales form." The official form, if your state has one, is always the safest choice because it meets your state's legal requirements exactly.
If your state does not have an official form, you can use a generic bill of sale template from a legal document website. The template should include all the fields mentioned above: seller name and address, buyer name and address, VIN, year, make, model, color, odometer reading, sale price, date, and signature lines. Print it, fill it out by hand or on a computer, and have both parties sign it. A generic template works in most states as long as it contains the essential information and both signatures.
Do not use a bill of sale from a different state unless you have no other option. State laws vary slightly, and using your own state's form ensures you meet local requirements.
How to fill out and sign the bill of sale
Print or obtain the form and read through it completely before you start writing. Fill in the seller's full legal name and current address. Fill in the buyer's full legal name and current address. Write the VIN exactly as it appears on the title or registration—do not guess or abbreviate. Write the year, make, model, and color of the vehicle. Enter the odometer reading in miles or kilometers as shown on the instrument cluster at the time of sale.
Write the sale price clearly in both numbers and words. Write the date of the sale. If there are any special terms—for example, the buyer is taking over a loan, or certain repairs are the seller's responsibility—write those in the "additional terms" or "notes" section if the form has one. Both the seller and the buyer must sign and print their names on the signature lines. Some states require the signatures to be witnessed or notarized; if yours does, take the form to a notary public before or after signing.
Make at least three copies: one for the seller, one for the buyer, and one to submit to the DMV if your state requires it. Keep the copies in a safe place. Do not write in pen if you can avoid it—use a printer or typewriter so the document is clear and cannot be altered later.
When you need to submit the bill of sale to the DMV
Check your state's DMV website to see whether you must submit the bill of sale when you register the vehicle. Some states require it; others do not. If your state does require it, you will usually submit it along with the title transfer form and your registration process. The DMV will keep a copy on file.
Even if your state does not require you to submit it, keep a copy with your vehicle records. If a question ever arises about when you bought the car or what condition it was in, the bill of sale is your proof. The buyer should also keep a copy until they sell the vehicle to someone else.
Why the bill of sale matters even though it does not transfer the title
The bill of sale and the title are two separate documents that do two separate jobs. The title proves who owns the vehicle. The bill of sale proves that ownership changed hands on a specific date. You need both.
Here is why the bill of sale matters: if you sell a car and do not transfer the title right away, and the buyer gets a speeding ticket or is in an accident, the police or the other driver may come after you because the title still has your name on it. A bill of sale dated before the ticket or accident proves you no longer owned the vehicle on that date. It protects you from liability.
For the buyer, the bill of sale proves you bought the vehicle in good faith and on a specific date. If the seller later claims you stole it, or if there is a lien on the vehicle that was not disclosed, the bill of sale is evidence of the legitimate transaction. It also protects you if the odometer was rolled back—the bill of sale records what the odometer said when you took possession.
Common mistakes to avoid when using a bill of sale
Do not leave any fields blank. If a field does not explore—for example, there is no outstanding loan—write "N/A" or "None" so it is clear you did not just skip it. Do not use nicknames or informal names; use the full legal names as they appear on driver's licenses. Do not estimate the odometer reading; write down exactly what it says on the dashboard at the moment of sale.
Do not sign the bill of sale before the buyer has inspected the vehicle and agreed to the price and condition. The bill of sale should be signed at or after the moment the keys and money change hands. Do not assume the buyer will transfer the title right away; give them a copy and keep a copy yourself. Do not throw away your copy after the sale is complete; keep it for at least several years in case a question arises.
Do not use a bill of sale from a different state or a form you found online without checking whether your state has its own official version. Do not skip the notarization step if your state requires it; an unnotarized bill of sale may not be accepted by the DMV or may not hold up if there is a dispute.
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 as a bill of sale. The dealer will handle the title transfer and registration. You do not need a separate 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 a bill of sale is a red flag. It suggests they may not actually own the vehicle, or they are trying to hide something. Walk away from the deal.
Can I use a bill of sale instead of transferring the title?
No. The bill of sale proves the sale happened, but the title transfer proves you own the vehicle. You must do both. Submit the bill of sale and the title transfer form to your DMV to register the vehicle in your name.
Is a bill of sale valid if it is not notarized?
In most states, yes. Notarization is not required unless your state's DMV specifically says it is. Check your state's requirements. If notarization is required and you do not get it notarized, the DMV may reject the document when you try to register the vehicle.
How long should I keep the bill of sale?
Keep it for at least as long as you own the vehicle, and ideally for several years after you sell it. If a question arises about the sale or the vehicle's condition at the time of sale, the bill of sale is your proof. Store it with your other vehicle records in a safe place.