A bill of sale is a written record that you sold a car to someone else, signed by both of you
A bill of sale is a document that proves ownership changed hands. It shows the buyer paid you, you transferred the car to them, and both parties agree on the price and condition. Most states do not legally require one, but it protects you if something goes wrong after the sale — a buyer claims the car was stolen, or a lender comes after you for a loan the buyer took out in the car's name.
The bill of sale does not transfer the title itself. That happens at the DMV or your state's equivalent. But the bill of sale is the paper trail that shows you are no longer responsible for the vehicle, and it is the first document a buyer will need when they register the car in their name.
Key Takeaways
- A bill of sale should include the vehicle identification number (VIN), the sale price, the date of sale, and the signatures of both buyer and seller.
- Most states do not require a bill of sale by law, but it is your main protection if a buyer later claims you misrepresented the car or if they do not pay you.
- You should keep a copy for your records even after you sign the title over to the buyer at the DMV.
- A bill of sale is not the same as a title transfer — you still need to notify your state's DMV that you no longer own the vehicle.
What information must go on the bill of sale
The bill of sale should include the vehicle identification number (VIN), which appears on the dashboard and on your title. Include the make, model, year, and color so there is no confusion about which car changed hands. Write down the odometer reading on the day of sale — this is required in most states and prevents disputes about mileage later.
Add the sale price in words and numbers. Write "as-is" if you are selling the car in its current condition with no warranty, or describe any repairs you made or any known problems. Both the buyer and seller should print their names, sign, and date the document. Some states ask for driver's license numbers or addresses; check your state's DMV website to see if there are specific requirements.
If the buyer is financing the car through a lender, the lender may have its own bill of sale form. Ask the buyer whether their bank or credit union provided one before you write your own.
Where to get a bill of sale form
Your state's DMV website usually has a free bill of sale template you can read and print. Search "[your state] DMV bill of sale" to find it. Some states call it a "notice of sale" or "vehicle sale form" instead. If your state does not provide one, you can use a generic template from a legal document site, but check your state's DMV page first to make sure you are not missing any required fields.
You can also write one by hand on plain paper if you include all the information above. It does not need to be notarized in most states, though some buyers or lenders may ask for it. A notary costs $10 to $25 and takes 10 minutes; if the buyer requests it, ask them to pay for it.
Signing and exchanging the bill of sale
Print two copies — one for you and one for the buyer. Both of you should sign both copies in front of each other. Do not sign a blank bill of sale or one with blank fields; fill in every detail before you sign. Take a photo of the signed document on your phone before you hand it over, so you have a record even if the copy gets lost.
Give the buyer their copy at the time of sale, along with the keys and the title. Keep your copy in a safe place for at least three to five years. If a problem arises later — the buyer claims you misrepresented the car, or they do not register it and it gets towed — you will need proof that you sold it and when.
How a bill of sale protects you after the sale
Once you sign over the title at the DMV, you are no longer the registered owner. But the bill of sale is proof that you transferred ownership to the buyer on a specific date. If the buyer gets into an accident and the other driver sues, or if they rack up parking tickets, those claims go to the buyer, not you — as long as you have notified your state that you sold the car.
If the buyer financed the purchase and later defaults on the loan, the lender cannot come after you because the bill of sale shows you received payment and transferred the car. If the buyer claims you sold them a stolen car or one with a salvage title you did not disclose, the bill of sale is evidence of what you told them at the time of sale.
Notifying your state that you no longer own the car
After you sign the bill of sale and the buyer takes the car, you must notify your state's DMV that you sold it. Some states call this a "notice of sale" or "release of liability." You can usually do this online, by mail, or in person at a DMV office. This step is separate from the bill of sale — it tells the state that you are no longer responsible for the vehicle.
Do this within the timeframe your state requires, usually 5 to 10 days after the sale. If you do not notify the state and the buyer gets into an accident or racks up tickets before they register the car, you may be held liable. Keep a copy of the notice you submit, along with your copy of the bill of sale.
What to do if the buyer does not pay or does not register the car
If the buyer does not pay you in full, do not hand over the keys or the title until the money clears. If you are accepting a personal check, wait for it to clear before you sign anything. If the buyer pays in cash, count it in front of them and keep a record of the amount.
If the buyer takes the car but does not register it within a reasonable time, contact them in writing and ask for proof of registration. If they do not respond, you can file a police report for theft or contact your state's DMV to ask whether they have registered the vehicle. Your bill of sale is proof that you sold it and when, so you are not liable for what happens to the car after that point — but only if you notified the state.
Frequently Asked Questions
Do I need a bill of sale if I am trading the car in at a dealership?
No. The dealership handles all the paperwork and the title transfer. You sign the title over to them, and they manage the rest. A bill of sale is only needed when you sell directly to another person.
What if the buyer wants to pay me in installments?
You can note the payment plan on the bill of sale — for example, "$5,000 down on [date], $5,000 on [date]." However, do not hand over the keys or the title until you have received the full amount. If the buyer defaults, you have a signed record of what they owe, but collecting it may require small claims court.
Can I sell a car without a bill of sale?
Most states do not legally require one, but it is your only proof that you sold the car and when. Without it, you have no protection if the buyer later claims you misrepresented the vehicle or if they do not register it. It takes 10 minutes to write one — it is worth doing.
Does the bill of sale need to be notarized?
Not in most states. A notary is optional unless your state's DMV requires it or the buyer's lender asks for it. If you do get it notarized, the notary will charge a small fee and verify that both of you signed in front of them.
What if I lost my copy of the bill of sale?
If you kept a photo on your phone or a digital copy, you have a record. If not, contact the buyer and ask them to send you a copy of theirs. If they will not, you still have your copy of the title showing you transferred it to them, which is proof of the sale.