A bill of sale is a written record that you sold a car to someone else, and it protects both you and the buyer by documenting the sale details in one place

When you sell a car privately—not through a dealer—a bill of sale becomes your proof that the transaction happened, what was agreed, and who owns the vehicle now. It is not the same as a title document. The title is the legal ownership record kept by your state's motor vehicle department. The bill of sale is the paper trail that shows how ownership changed hands and what price was paid. Without it, you have no record that you sold the car, which can create problems if the buyer later gets into an accident, racks up parking tickets, or stops paying a loan they took out using your car as collateral.

A bill of sale also protects the buyer by documenting the condition of the car at the time of purchase and confirming they paid for it. If a dispute arises later—about mechanical problems, ownership, or payment—both parties have a signed document to reference.

Key Takeaways

  • A bill of sale is a written agreement between seller and buyer that documents the sale, price, vehicle details, and date—separate from the title transfer itself.
  • Your state does not require a bill of sale by law in most cases, but creating one protects you from liability if the buyer causes damage or fails to register the vehicle.
  • The bill of sale should include the vehicle identification number (VIN), odometer reading, sale price, condition notes, and signatures from both parties.
  • You must still transfer the title through your state's motor vehicle department; the bill of sale is a supporting document, not a replacement for title transfer.
  • Keep a copy for your records even after you sign the title over, because it proves when and to whom you sold the car.

What information must go in a bill of sale

A bill of sale should include the date of the sale, the full names and addresses of both the seller and buyer, and the vehicle identification number (VIN) from the dashboard or title. Include the year, make, model, and color of the car so there is no confusion about which vehicle is being sold. Write down the odometer reading at the time of sale—this is important because it documents the mileage and helps prevent odometer fraud claims later.

State the sale price in words and numbers (for example, "One thousand five hundred dollars ($1,500)"). If you are selling the car as-is with no warranty, write that clearly. If you are making any repairs before the sale or the buyer is accepting known mechanical issues, document those too. Both the seller and buyer should sign and date the document. Some states require the signatures to be notarized, though most do not—check your state's motor vehicle department website to confirm.

If there is an outstanding loan on the car, note that the buyer understands the lien exists and that the title will be released only after the loan is paid off. This prevents the buyer from thinking they own the car free and clear when the lender still has a claim on it.

Where to get a bill of sale form

Your state's motor vehicle department often provides a bill of sale template on its website, sometimes called a "Notice of Sale" or "Vehicle Sale Form." This is the safest option because it is designed to meet your state's requirements. Search "[your state] motor vehicle department bill of sale" to find it.

If your state does not provide a form, you can create one yourself using a template from a legal document website or a straightforward word processor. The form does not need to be fancy or use legal jargon—it just needs to be clear, complete, and signed by both parties. Some people use a bill of sale from an online template site, which is acceptable as long as it includes all the information listed above and you customize it with the correct vehicle and buyer details.

Do not rely on a bill of sale from a different state unless you have confirmed it meets your state's requirements. Requirements vary, and using the wrong form could create problems when the buyer tries to register the vehicle.

How a bill of sale differs from a title transfer

The bill of sale documents the sale itself—the agreement, the price, the condition, and the date. The title transfer is the legal process of changing ownership in your state's records. You need both. The bill of sale is your proof that the sale happened; the title transfer is how the state officially recognizes the new owner.

After you and the buyer sign the bill of sale, you must still complete the title transfer through your state's motor vehicle department. This usually involves signing the back of the title document, having the buyer sign it, and submitting both documents to the department along with any required fees. The exact process varies by state—some require notarization, some require an odometer statement, and some have specific forms you must use. Check your state's motor vehicle department website for the exact steps.

The bill of sale is not filed with the state in most cases; you and the buyer each keep a copy. The title is what gets filed, and that is what creates the official record of ownership change.

Protecting yourself as a seller

Keep a copy of the signed bill of sale for at least three to five years after the sale. This protects you if the buyer later causes an accident and someone tries to sue you, or if the buyer fails to register the vehicle and you receive a notice. The bill of sale proves you no longer owned the car at the time of the incident.

Before you hand over the keys, make sure the buyer has signed the bill of sale and you have a copy in your possession. Do not rely on the buyer to handle the title transfer—confirm with your state's motor vehicle department a few weeks after the sale that the title has been transferred into the buyer's name. If it has not been transferred, contact the buyer and ask them to complete it when ready. An unregistered vehicle in your name creates ongoing liability for you.

If you are selling a car with an outstanding loan, do not sign over the title until you have confirmed with your lender that the loan will be paid off at closing. Some private sales involve the buyer paying off the loan directly; others involve you paying it off from the sale proceeds. Make sure the lender releases the lien before the title is transferred, or the buyer will not actually own the car.

What to do if the buyer does not complete the title transfer

If weeks pass and the title has not been transferred to the buyer's name, send the buyer a written notice (email is acceptable) asking them to complete the transfer within a specific timeframe—typically 10 to 14 days. Keep a copy of that notice. If the buyer still does not transfer the title, contact your state's motor vehicle department and ask what steps you can take to remove yourself from the registration.

Some states allow you to file a "Notice of Sale" or "Affidavit of Sale" with the motor vehicle department, which officially notifies the state that you sold the vehicle on a specific date. This document protects you from liability for anything that happens to the car after that date. The process and form name vary by state, so contact your motor vehicle department directly to learn what is available in your state.

In rare cases where the buyer has disappeared or refuses to transfer the title, you may need to consult a lawyer about your options. This is uncommon, but it is why keeping the signed bill of sale is so important—it is your evidence that you completed your part of the sale.

Frequently Asked Questions

Do I have to notarize the bill of sale?

Most states do not require notarization of a bill of sale, but a few do. Check your state's motor vehicle department website or call them to confirm. Even if it is not required, having a notary witness the signatures adds an extra layer of protection because it proves both parties actually signed the document.

What if I sold the car for cash and the buyer paid me less than the asking price?

Write the actual amount paid on the bill of sale, not the asking price. The bill of sale must reflect what was actually agreed to and paid. This is the amount that matters for your records and for the buyer's registration.

Can I sell a car without a bill of sale?

Technically, most states do not legally require a bill of sale for a private car sale. However, not having one leaves you unprotected if the buyer causes damage, fails to register the vehicle, or disputes the terms of the sale later. Creating a bill of sale takes 10 minutes and protects both parties, so it is worth doing even if it is not required.

What if the buyer wants to pay me after they take the car?

Do not hand over the keys or sign the title until you have received full payment. If the buyer needs financing, they should find it before the sale closes. If you agree to accept payment later, put that arrangement in writing on the bill of sale and do not transfer the title until the full amount has been paid.