A bill of sale is a written record that you and the buyer (or seller) sign to prove who owned the car and when the ownership changed hands

It is not the same as a title — the title is the legal ownership document that the state issues. A bill of sale is a private agreement between you and the other person, and it protects both of you by creating a paper trail. If you sell a car without one, you have no proof of when you handed over the keys or what price was agreed. If you buy without one, you have no proof of what you paid or that the seller actually owned it.

The bill of sale should be signed and dated by both parties before money changes hands. You do not file it with the state — you keep it for your records. Some states require it as part of the title transfer process at the DMV, while others do not, but having one is always a good idea whether the state requires it or not.

Key Takeaways

  • A bill of sale records the vehicle identification number (VIN), the sale price, the date of sale, and the signatures of both the seller and buyer.
  • Both the seller and buyer should keep a signed copy for their records, even if your state does not require it for the title transfer.
  • The bill of sale protects the seller by proving they no longer own the car on a specific date, which matters if the car is later involved in an accident or crime.
  • The bill of sale protects the buyer by documenting the agreed price and condition, which can prevent disputes later.
  • You can use a template from your state's DMV website, a generic template, or write one yourself as long as it includes the essential information.

What information must go on a bill of sale

The bill of sale should include the vehicle identification number (VIN), which you can find on the dashboard on the driver's side, on the title, or on insurance documents. It should also include the year, make, model, and color of the car, and the license plate number if one is already assigned.

Write down the sale price in words and numbers — for example, "Five Thousand Dollars ($5,000.00)". Include the date of the sale. Add the full name, address, and phone number of the seller and the buyer. Both people must sign and print their names, and ideally the signatures should be witnessed by a notary public, though this is not always required.

You can also note the condition of the car — for example, "sold as-is" or "with a full tank of gas" — and whether any repairs or warranties are included. If the car has known problems, write them down. This protects both of you by making clear what was discussed before the money changed hands.

Where to find a bill of sale template

Many state DMV websites provide a free bill of sale form that you can read and print. Search "[your state] DMV bill of sale" to find it. If your state does not provide one, you can use a generic template from legal document websites or from the American Automobile Association (AAA) if you are a member.

You can also write one yourself on plain paper. It does not have to be fancy or use legal language. As long as it includes the VIN, the sale price, the date, and the signatures of both parties, it will hold up if there is ever a dispute. Type it or write it by hand — either is fine.

When the seller needs a bill of sale most

The seller should insist on a bill of sale because it proves the moment ownership transferred. If the buyer gets into an accident the day after the sale and the buyer's insurance company cannot reach them, the at-fault party's insurance might try to sue the seller instead. A dated bill of sale proves the seller no longer owned the car on that date.

The same protection matters if the car is used in a crime, abandoned, or racked up parking tickets after the sale. Without a bill of sale, the seller could be held responsible for violations that happened after they sold it. The seller should also keep proof that the title was transferred to the buyer — a copy of the signed title or a receipt from the DMV showing the transfer was processed.

When the buyer needs a bill of sale most

The buyer should insist on a bill of sale because it documents what was promised. If the seller said the transmission was fine and it fails a week later, the buyer has a record of what was discussed. If the price was negotiated down because of a dent or a mechanical issue, the bill of sale can note that.

The buyer also needs the bill of sale to take to the DMV when transferring the title into their name. Some states require it as part of the title process. Even if the state does not require it, the buyer should have it as proof of purchase in case there is ever a question about who owns the car or what was paid for it.

How to handle a bill of sale if you are buying from a private seller

Before you hand over money, ask the seller to fill out a bill of sale with you. If the seller does not have a template, bring one with you — read one from your state's DMV website or a legal document site before you meet. Fill in all the blanks together so there is no confusion about the VIN, price, or condition of the car.

Read it out loud to make sure everything is correct. Check that the VIN matches the title and the car itself — the VIN on the dashboard should match the VIN on the title. Both of you should sign and date it. Each person should keep a copy. If possible, have the signatures notarized, though this is not always required. Take a photo of the signed bill of sale with your phone so you have a backup.

What to do if the seller will not sign a bill of sale

If a private seller refuses to sign a bill of sale, that is a red flag. It suggests the seller may not actually own the car, may owe money on it, or may be hiding something. Do not buy the car. A legitimate seller has no reason to refuse a straightforward, standard document that protects both of you.

If you are buying from a dealership, the dealership will provide the paperwork — they are required to by law. Dealerships handle the title transfer and provide a bill of sale as part of the purchase agreement. Read it carefully before you sign, and ask questions about anything you do not understand.

Frequently Asked Questions

Do I need a notary to sign a bill of sale?

It depends on your state. Some states require notarization; others do not. Check your state's DMV website to see if it is required. Even if it is not required, having a notary witness the signatures adds an extra layer of protection and costs only a few dollars at a bank or UPS store.

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

Ask the other party for a copy. If you cannot reach them, the bill of sale is still on file with the DMV if the title was transferred. You can request a copy of the title transfer record from your state's DMV, which will show the date the car changed hands.

Can I use a bill of sale from an online template if my state has its own form?

Yes, but using your state's official form is safer because it includes everything the DMV requires. If you use a generic template, make sure it has all the information your state's form has, or the DMV may reject it during the title transfer.

Should I include the odometer reading on the bill of sale?

Yes. The odometer reading is important for the title transfer and for detecting odometer fraud. Write down the mileage shown on the dashboard at the time of sale, and both parties should initial it.

What if the buyer and seller disagree on the price later?

The signed bill of sale is the proof of what was agreed. If the price is written clearly and both parties signed it, that is the legal record. This is why it is important to get the price in writing before you sign.