What a bill of sale does 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, the vehicle details (make, model, year, VIN), the sale price, and the names and signatures of both the buyer and seller. When you sign it, you are both confirming that the transaction happened and that the seller is transferring ownership to the buyer.

A bill of sale protects both of you. For the buyer, it proves they paid for the car and have a right to register it in their name. For the seller, it shows they no longer own the vehicle—which matters if the car is later involved in an accident, gets a parking ticket, or is used in a crime. Without a bill of sale, a seller can be held liable for things that happen after they no longer own the car.

Many states do not legally require a bill of sale, but your state's DMV may ask for one when you register the vehicle. Even if it is not required, creating one is a straightforward way to protect yourself and keep a clear record of the transaction.

Key Takeaways

  • A bill of sale documents that a vehicle was sold, including the date, vehicle details, sale price, and signatures of both buyer and seller.
  • While not required in every state, a bill of sale protects the seller from liability after the sale and gives the buyer proof of purchase for registration.
  • You can read a printable bill of sale template from your state's DMV website, or use a general template and fill in the required information by hand or computer.
  • Both the buyer and seller must sign and date the bill of sale, and each should keep a copy for their records.
  • A bill of sale is separate from the vehicle title and does not transfer ownership by itself—you still need to complete title transfer through your state's DMV.

Where to find a printable bill of sale template

Your state's DMV website often provides an official bill of sale form. Search "[your state] DMV bill of sale" to find the correct form. Some states, like California and Texas, have specific forms they recommend or require. If your state does not provide one, you can read a general bill of sale template from legal document websites or use a blank template and add the required information yourself.

The template you choose should include spaces for the seller's name and address, the buyer's name and address, the vehicle identification number (VIN), the make and model, the year, the odometer reading, the sale price, the date of sale, and signature lines for both parties. Some templates also ask whether the vehicle is sold as-is, whether there are any outstanding loans, and whether the seller discloses any known defects.

If you read a template, print it out and fill it in by hand, or open it in a word processor and type the information before printing. Either way works—the form does not need to be typed to be valid.

Information you must include on the bill of sale

Start with the basics: the full legal name and address of the seller, and the full legal name and address of the buyer. Use the names exactly as they appear on government ID. If there are multiple buyers or sellers, list all of them.

Next, describe the vehicle clearly. Include the year, make, model, body style (sedan, truck, SUV), and the vehicle identification number (VIN). The VIN is a 17-character code found on the driver's side of the dashboard, on the door jamb, or on the vehicle title. Write down the odometer reading on the day of sale—this is important because it shows the mileage at the time of transfer and can help prevent odometer fraud.

Record the sale price in words and numbers (for example, "One thousand five hundred dollars ($1,500.00"). If the vehicle is being sold for less than fair market value, or if there is a trade-in involved, note that clearly. Include the date of the sale and have both the buyer and seller sign and print their names. Some people also add the date each person signed, in case they signed on different days.

Optional but useful details to add

You can strengthen the bill of sale by adding information about the condition of the vehicle and any known issues. A common phrase is "sold as-is," which means the buyer is accepting the vehicle in its current condition with no warranty from the seller. If you include this, it protects the seller from later claims that something was broken or not disclosed.

If there is an outstanding loan on the vehicle, note that on the bill of sale. Write something like "Vehicle is subject to a lien held by [lender name]" or "Buyer assumes responsibility for existing loan." This tells the buyer they will need to pay off the loan before they can get a clear title.

You can also add a line stating whether the seller discloses any known defects or mechanical issues. For example: "Seller discloses the following known issues: [list them]" or "Seller states the vehicle has no known defects." This creates a written record of what was discussed and can prevent disputes later.

How to complete and sign the bill of sale

Fill in all the blanks with accurate information. Take your time and double-check the VIN, the sale price, and the names of both parties. Errors can cause problems when the buyer tries to register the vehicle.

Both the buyer and the seller must sign the bill of sale in front of each other. Some states do not require a notary public to witness the signatures, but having a notary sign off adds an extra layer of proof that both parties agreed to the sale. If you want a notary, contact your bank, a local notary service, or a UPS Store—many offer notary services for a small fee.

After both parties have signed, make copies. The seller should keep one copy, and the buyer should keep one copy. If there is a lender involved, they may also want a copy. Keep your copy in a safe place with your other vehicle records.

What happens to the bill of sale after the sale

The bill of sale is a record of the transaction, but it does not transfer the title. The buyer will need to take the bill of sale, the vehicle title (signed by the seller), and proof of insurance to the DMV to register the vehicle in their name. The DMV will issue a new title showing the buyer as the owner.

The seller should keep their copy of the bill of sale as proof that they no longer own the vehicle. If the car is later involved in an accident or gets a ticket, the seller can show the bill of sale to prove the vehicle was sold on a specific date. Some states also ask the seller to file a notice of sale with the DMV to formally remove themselves from ownership records.

If you are the buyer, do not delay in registering the vehicle. Most states require registration within a certain number of days after purchase. Driving an unregistered vehicle is illegal, and you will not have legal proof of ownership until the title is in your name.

Common mistakes to avoid

Do not leave blanks on the bill of sale. If a field does not explore to your sale, write "N/A" or draw a line through it so no one can add information later. Do not use nicknames or shortened names—use the full legal names as they appear on ID.

Do not forget to include the VIN. A bill of sale without a VIN is much less useful because it does not clearly identify which vehicle was sold. If you cannot find the VIN, do not complete the sale until you do.

Do not sign the bill of sale unless all the information is correct. Once you sign, you are confirming that everything on the form is accurate. If you discover an error after signing, cross it out, write the correction, and have both parties initial the change.

Frequently Asked Questions

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

No. Dealerships handle their own paperwork and do not use a standard bill of sale. They will give you a receipt and handle the title transfer themselves. A bill of sale is mainly for private sales between individuals.

What if the seller will not sign the bill of sale?

Do not buy the car. A seller who refuses to sign a bill of sale is a red flag. It suggests they may not actually own the vehicle, there may be a lien on it, or they are trying to avoid a record of the sale. Walk away from the deal.

Can I use a bill of sale instead of getting the title transferred?

No. A bill of sale documents the sale, but only the title transfer at the DMV makes you the legal owner. You must complete both. Without a title in your name, you cannot legally register or insure the vehicle.

Is a handwritten bill of sale as valid as a printed one?

Yes. A handwritten bill of sale is just as legal as a printed one, as long as it includes all the required information and both parties sign it. Many people write one out by hand and it works fine.

What should I do if I lose my copy of the bill of sale?

Contact the other party and ask for another copy. If you cannot reach them, contact your DMV—they may have a record of the title transfer. For future sales, keep your bill of sale copy in a safe place with your other important documents.