A bill of sale is a written record that you sold a vehicle to someone else, signed by both the seller and buyer, and kept by each party
A bill of sale is a document that proves ownership changed hands. It shows the date of the sale, the vehicle details (make, model, year, VIN), the sale price, and the signatures of both the person selling and the person buying. You do not need a fancy form — a bill of sale can be handwritten on plain paper, typed on a template, or filled out on a state-specific form if your state provides one.
The bill of sale itself does not transfer the title. That happens when you file the title paperwork with your state's motor vehicle department. But the bill of sale is the proof that the sale happened, and it protects both of you if questions come up later about who owned the vehicle on a particular date.
Key Takeaways
- A bill of sale must include the vehicle VIN, the sale price, the date of sale, and the signatures of both buyer and seller to be valid.
- Some states have official bill of sale forms you can read from the motor vehicle department website, while others accept any written record that includes the required information.
- Both the buyer and seller should keep a signed copy for their records, separate from the title paperwork.
- A bill of sale protects you if the buyer later gets a ticket or is involved in an accident while using the vehicle, because it proves you no longer owned it.
What information must go on a bill of sale
The bill of sale needs to identify the vehicle clearly enough that there is no confusion about which car changed hands. Write down the vehicle identification number (VIN), the year, make, model, and color. Include the odometer reading on the date of sale. Add the license plate number if you have it.
Write the sale price in both numbers and words — for example, "$5,500 (five thousand five hundred dollars)" — so there is no room for misreading. If the sale included a trade-in, note that separately. If the buyer is assuming an existing loan, state that clearly too.
Include the full names and addresses of both the seller and the buyer, the date the sale took place, and the signatures of both parties. Some states require the seller to print their name below the signature. A few states ask for the buyer's signature to be notarized, though most do not.
State-specific bill of sale forms and requirements
Many states publish an official bill of sale form on their motor vehicle department website. These forms are free to read and use. Some states require you to use their form; others accept any written document that contains the required information. Check your state's motor vehicle website to see whether a form exists and whether it is required or optional.
A handful of states have specific rules about what must appear on the bill of sale — for instance, some require the odometer reading, others require a statement that the vehicle is sold "as-is," and a few require notarization. Your state motor vehicle department website will list these rules. If you cannot find them online, call the department directly and ask what your state requires on a bill of sale.
If your state does not have an official form, you can use a template from a reputable source, write one yourself, or use a template from a legal document website. The key is that it includes all the information listed above and is signed and dated by both parties.
How to fill out a bill of sale correctly
Start by gathering the information you need: the VIN (from the title or dashboard), the vehicle details, the sale price, and the full legal names and addresses of both buyer and seller. Use blue or black ink if you are handwriting it — avoid pencil, which can be erased.
Fill in every blank. Do not leave fields empty or write "N/A." If something does not explore — for example, there is no trade-in — write "none" or "not applicable." This prevents someone from filling in information later without your knowledge.
Both the buyer and the seller should sign and date the document. If your state requires notarization, take the signed bill of sale to a notary public before either party leaves. The notary will verify the identity of both signers and add their seal and signature.
Make at least two copies — one for the seller and one for the buyer. If you are financing the sale through a bank or dealer, they may need a copy as well. Keep your copy in a safe place, separate from the title.
Why you need a bill of sale even if the title is being transferred
The title transfer and the bill of sale serve different purposes. The title is the legal document that proves ownership; transferring it to the new owner's name is a requirement in every state. The bill of sale is a record of the transaction itself — when it happened, for how much, and that both parties agreed to it.
If the buyer gets a speeding ticket or is in an accident before the title is transferred to their name, the police or insurance company may contact you as the registered owner. A signed bill of sale dated before the incident proves you no longer owned the vehicle and shifts responsibility to the buyer. Without it, you could be held liable for fines or claims.
A bill of sale also protects the buyer. It proves they purchased the vehicle in good faith and shows the condition it was in at the time of sale. If a mechanical problem shows up later and the seller claims the buyer damaged it, the bill of sale can help settle the dispute.
Common mistakes to avoid when writing a bill of sale
Do not leave the price blank or write "cash" without a number. Tax authorities and courts need to know the actual sale price. If you are selling the vehicle for less than market value — perhaps to a family member — write the actual amount you received, not what the vehicle is worth.
Do not sign the bill of sale before the buyer has signed it, and do not let the buyer take a copy that is not signed by you. Both signatures must be on the same document. If you are mailing the bill of sale, have the buyer sign and return it before you sign your copy, or use a notary to verify both signatures separately.
Do not assume a verbal agreement or a text message counts as a bill of sale. Put it in writing. Do not use a bill of sale as a substitute for a title transfer — you still have to file the title paperwork with your state motor vehicle department within the time limit they set, usually 10 to 30 days.
Do not write the bill of sale in pencil or use white-out to make corrections. If you make a mistake, start over. Do not cross out information and initial it; rewrite the document cleanly.
What to do with your bill of sale after the sale
Keep your signed copy of the bill of sale in a safe place — a filing cabinet, a safe deposit box, or a digital scan stored securely. You may need it if a question comes up about when you sold the vehicle or what condition it was in.
If you are the seller, keep your copy until the title transfer is complete and the vehicle is registered in the buyer's name. After that, you can keep it for your records or discard it, but many people hold onto it for several years in case a dispute arises.
If you are the buyer, keep your copy along with the title and registration. If you later sell the vehicle, you may want to show the bill of sale to the new buyer as proof of your ownership history.
Frequently Asked Questions
Can I write a bill of sale on a piece of notebook paper?
Yes. A bill of sale does not have to be on an official form or fancy paper. Handwritten on notebook paper is fine as long as it includes the VIN, vehicle details, sale price, date, and signatures of both buyer and seller. Some states prefer their official form, so check your state motor vehicle website first.
What if the buyer does not want to sign the bill of sale?
Do not complete the sale without a signed bill of sale from both parties. If the buyer refuses to sign, it is a red flag that they may not be acting in good faith. A legitimate buyer will sign a bill of sale without hesitation because it protects them too.
Do I need a bill of sale if I am trading the vehicle in at a dealership?
No. The dealership will handle the paperwork and will not ask for a separate bill of sale. They will give you a receipt showing the trade-in value, which serves as your proof of the transaction.
Is a bill of sale the same as a title?
No. A bill of sale is a record of the sale; a title is the legal ownership document. You need both. The bill of sale proves the transaction happened; the title transfer proves who owns the vehicle now. File the title with your state motor vehicle department within the important date they set.
What if I lost my copy of the bill of sale?
Contact the other party and ask for a copy of their signed original. If you cannot reach them, you can request a copy of the title history from your state motor vehicle department, which will show the date the ownership changed. This is not as strong as the bill of sale itself, but it is a record.