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, the price paid, and the names and signatures of both the buyer and seller. When you sign one, you are creating proof that the transaction happened and on what terms.

A bill of sale protects both of you. For the seller, it shows you no longer own the vehicle on a specific date — important if the buyer gets into an accident or racks up parking tickets after the sale. For the buyer, it proves you paid for the vehicle and what you paid, which matters if a dispute arises later about the condition or the price. Many states also require a bill of sale before the buyer can register the vehicle in their name or transfer the title.

You can read a printable bill of sale template, fill it out by hand or on your computer, print it, and have both parties sign it. No notary is required in most states, though some states recommend or require notarization — check your state's motor vehicle department website to be sure. The document itself costs nothing; what matters is that it exists and both parties keep a copy.

Key Takeaways

  • A bill of sale is a written record of who sold the vehicle, who bought it, when the sale happened, and what price was paid.
  • Both the buyer and seller should sign and keep a copy; some states require notarization, so check your state's rules before signing.
  • A printable template includes spaces for vehicle identification number (VIN), odometer reading, condition notes, and signatures from both parties.
  • The bill of sale must be presented to your state's motor vehicle department when you register the vehicle or transfer the title into your name.
  • A bill of sale is not the same as a title; it is a supporting document that proves the sale occurred, but the title transfer is handled separately through your state.

What information goes on a bill of sale

A standard bill of sale includes the seller's full name and address, the buyer's full name and address, and the date of the sale. It also lists the vehicle's year, make, model, color, and most importantly, the vehicle identification number (VIN) — a 17-character code found on the driver's side dashboard or door jamb that uniquely identifies that specific car.

The document should state the sale price in both numbers and words (for example, "$5,000" and "Five Thousand Dollars") to avoid confusion. It should also include the odometer reading at the time of sale, which protects the buyer by documenting the mileage and helps prevent odometer fraud. Many templates include a line for the vehicle's condition — whether it is being sold "as-is" or with any warranties — and space for the seller to note any known defects or damage.

Both the seller and buyer sign and date the bill of sale. Some templates include a line for a witness signature, though this is not required in most states. Each party should keep an original signed copy for their records. If the sale involves a trade-in or a vehicle with a lien (a loan still owed on it), the bill of sale should note that as well.

Where to find a printable bill of sale template

Your state's motor vehicle department website usually offers a free bill of sale form specific to your state's requirements. Search "[your state] bill of sale" or "[your state] motor vehicle department" to find the official version. Using your state's form ensures you include everything the state requires and that the document will be accepted when you submit it with your title transfer paperwork.

If your state does not offer an official form, you can use a generic bill of sale template from a legal document website or read one from a reputable automotive resource. The basic structure is the same across states: seller information, buyer information, vehicle details, sale price, odometer reading, condition notes, and signatures. Make sure the template you choose includes a space for the VIN and odometer reading, as these are critical.

You can also create your own bill of sale from scratch if you prefer. Write it on plain paper, include all the information listed above, have both parties sign and date it, and keep copies. A handwritten bill of sale is legally valid in most states as long as it contains the essential details and both signatures.

How to fill out and sign a bill of sale

Print the template or open it in a word processor and fill in the blanks. Use the seller's legal name as it appears on the vehicle title, not a nickname or shortened version. Do the same for the buyer. Write the vehicle's VIN exactly as it appears on the title or registration — a single wrong digit can cause problems when the buyer tries to register the vehicle.

Enter the odometer reading as it appears on the instrument cluster at the time of sale. If the vehicle's odometer does not work or has rolled over, note that clearly (for example, "Odometer inoperative" or "Mileage unknown"). Write the sale price in both numbers and words. If the vehicle is being sold "as-is" with no warranty, state that explicitly. If there are known defects — a dent, a transmission issue, a check engine light — list them so there is no dispute later about the vehicle's condition.

Print two copies, one for the seller and one for the buyer. Both parties should sign and date each copy in front of each other. If your state requires notarization, take the document to a notary public (often available at banks, UPS stores, or libraries) and have both parties sign in front of the notary. The notary will stamp and sign the document, and you will pay a small fee — usually between $5 and $15 per signature.

When to submit the bill of sale to your state

The buyer submits the bill of sale to the state motor vehicle department as part of the title transfer process. The timing depends on your state, but most states require the transfer to happen within 10 to 30 days of the sale. Check your state's motor vehicle department website for the exact important date and the other documents needed — usually the signed bill of sale, the original title, a completed title transfer form, and proof of insurance.

The seller does not typically submit the bill of sale; the buyer does. However, the seller should keep a copy for their records as proof that they no longer own the vehicle. If the buyer does not transfer the title promptly and the vehicle is later involved in an accident or gets parking tickets, the seller's copy of the bill of sale proves the vehicle was sold on a specific date and is no longer their responsibility.

Some states allow the buyer to register the vehicle before the title transfer is complete, but the title must be transferred within the state's important date. Do not delay — if the buyer does not transfer the title and something goes wrong with the vehicle, the seller can still be held liable because the state's records still show them as the owner.

Bill of sale versus title transfer

A bill of sale and a title transfer are two different documents that work together. The bill of sale is a record of the transaction — proof that the sale happened, when it happened, and for how much. The title is the state's official document proving who owns the vehicle. When you sell a car, the bill of sale documents the sale, but the title must be transferred through your state's motor vehicle department to make the buyer the legal owner.

The buyer needs both documents. The bill of sale proves they bought the vehicle and what they paid. The title transfer changes the state's records so that the buyer's name appears on the official ownership document. Without the title transfer, the state still considers the seller the owner, even if a bill of sale exists. This is why the buyer must submit both the bill of sale and the title transfer form to the motor vehicle department.

Some people mistakenly think a signed bill of sale is enough to transfer ownership. It is not. The bill of sale is supporting documentation; the title transfer is what actually changes who the state recognizes as the owner. Both are necessary, and both must be submitted together.

What to do if you lose your bill of sale

If you are the seller and you lose your copy of the bill of sale after the sale, ask the buyer for a copy. If the buyer has already transferred the title, you can also contact your state's motor vehicle department and request a record of the title transfer, which will show the date the vehicle was transferred out of your name. This serves as proof that you sold the vehicle, even without the original bill of sale.

If you are the buyer and you lose your copy before you transfer the title, contact the seller and ask for another signed copy. If the seller will not cooperate, you can still transfer the title using the original title and a completed title transfer form, though some states may ask for the bill of sale. Check your state's motor vehicle department website or call them to ask what documents are required if you do not have the bill of sale.

Going forward, keep your copy of the bill of sale in a safe place — a file folder, a safe deposit box, or a digital scan stored in cloud storage. For the seller, it is proof the vehicle was sold. For the buyer, it is proof of purchase and the price paid, which can matter for insurance claims or if a dispute arises later.

Frequently Asked Questions

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

No. Dealerships handle the paperwork themselves and do not use a bill of sale. The dealership will have you sign a trade-in agreement and will handle the title transfer. You do need a bill of sale only when you are selling a vehicle privately to another individual.

Can I use a bill of sale if the vehicle still has a loan on it?

Yes, but the bill of sale should note that the vehicle has a lien. The seller must pay off the loan before the title can be transferred to the buyer. The bill of sale can state that the sale is contingent on the lien being paid off, or it can note the lender's name and the loan amount so the buyer knows what to expect.

Is a bill of sale valid if only one person signs it?

No. Both the seller and the buyer must sign the bill of sale for it to be valid. A bill of sale signed by only one party is not proof of a completed transaction and will not be accepted by the motor vehicle department.

What if the buyer and I agree on a price but the buyer pays me in installments?

The bill of sale should state the total agreed price, not the installment amounts. You can note in the "condition" or "notes" section that payment will be made in installments, but the bill of sale itself documents the full sale price. If the buyer does not pay in full, you may have a civil dispute, but the bill of sale shows the agreed-upon price for the vehicle.

Do I need to notarize a bill of sale?

Most states do not require notarization, but some recommend it or require it for certain types of sales. Check your state's motor vehicle department website to see if notarization is required where you live. If it is, take the signed bill of sale to a notary public before submitting it to the state.