A bill of sale is the written record that you sold a car to someone else, and it protects both you and the buyer from disputes later
A bill of sale is a document that shows a vehicle changed hands. It lists the seller, the buyer, the vehicle details, the sale price, and the date of the transaction. When you sign it, you are saying you owned the car and sold it; when the buyer signs it, they are saying they bought it. Neither of you can later claim the other person lied about the deal.
You need a bill of sale whether you are selling to a private buyer or trading in to a dealer, though dealers usually provide their own form. If you are buying from a private seller, you should ask for one or bring your own. The bill of sale is not the same as the title — the title is the legal proof of ownership that transfers to the new owner at the DMV. The bill of sale is the evidence of the transaction itself.
Most states do not require a bill of sale by law, but many DMVs ask to see one when you register a vehicle you just bought. Some states — including Maryland, Michigan, and New Hampshire — do require it. Even where it is optional, having one in writing protects you if a dispute arises months or years later about who owned the car on a given date, what price was agreed to, or what condition the car was in.
Key Takeaways
- A bill of sale records the seller, buyer, vehicle identification number (VIN), sale price, and date, and both parties sign it to confirm the transaction.
- You can use a form provided by your state DMV, a template from a legal website, or a dealer's form — the content matters more than the source.
- The bill of sale is separate from the title and is not filed with the DMV, but many states ask to see it when you register the vehicle.
- Include the odometer reading, any known defects, and whether the sale is "as-is" to reduce the chance of disputes after the sale closes.
- Both the seller and buyer should keep a signed copy for their records, and the transaction should happen before or at the same time as the title transfer.
What information must go on the bill of sale
The bill of sale should include the seller's full name and address, the buyer's full name and address, and the date of the sale. It must also have the vehicle's VIN (Vehicle Identification Number), which is a 17-character code unique to that car. You can find the VIN on the title, on the dashboard at the base of the windshield on the driver's side, or on the insurance card. Do not use the license plate number instead — the VIN is what ties the document to the specific vehicle.
Write the sale price in both numbers and words to avoid confusion — for example, "$8,500" and "Eight thousand five hundred dollars." If the sale price is zero (such as a gift to a family member), write that down too. Include the odometer reading at the time of sale, which most states require on the bill of sale for vehicles under a certain age, typically 10 years old.
Add a line stating whether the vehicle is sold "as-is" — meaning the buyer accepts it in its current condition with no warranty from the seller — or whether the seller is making any promises about the car's condition or mechanical state. If there are known defects, list them. This protects the seller from later claims that the car was misrepresented and protects the buyer by making clear what they are getting.
Where to find a bill of sale form
Your state's DMV website usually has a bill of sale form you can read and print. Search "[your state] DMV bill of sale" to find it. Some states call it a "sales agreement" or "vehicle sales form" instead. If your state does not provide one, you can use a template from a legal document website such as LegalZoom, Rocket Lawyer, or even a general template site — the form does not have to be official to be valid, as long as it contains the required information.
If you are buying from a dealer, they will provide their own bill of sale or sales contract. Read it carefully to make sure it matches what you agreed to — price, trade-in value, add-ons, and financing terms. Dealers' forms are usually longer and more detailed than private-sale forms because they cover warranties, financing, and return policies.
If you are selling to a private buyer and neither of you has a form, you can write one by hand on plain paper. It does not need to be typed or printed. What matters is that it includes the required information, is signed and dated by both parties, and is clear enough that a third party (like a DMV clerk or a judge) could understand what was sold, to whom, for how much, and when.
How to fill out and sign the bill of sale
Fill in all blanks with accurate information. Use the legal name on your driver's license or ID, not a nickname or shortened version. If you are selling on behalf of a business or estate, write your title or relationship (for example, "John Smith, Executor of the Estate of Jane Smith"). Write clearly so the DMV can read it; if you are handwriting, use print rather than cursive.
Both the seller and the buyer must sign the bill of sale in front of each other. Some states require the signatures to be notarized — check your state DMV website to see if yours does. If notarization is required, you will need to take the signed form to a notary public (often available at banks, UPS stores, or online) who will verify your identity and add their seal and signature. If it is not required, a notary is still a good idea if you are concerned about disputes later, because it adds a layer of proof that both parties actually signed.
Do not sign the bill of sale before the buyer has inspected the car and agreed to the price. The bill of sale should be signed at the time of the transaction or when ready after, not days or weeks later. Both you and the buyer should keep a signed copy. If you are mailing the form to the buyer to sign, use a method that creates a record — email with read receipt, certified mail, or a digital signature service — so you have proof both parties signed.
Timing: when the bill of sale happens relative to the title transfer
The bill of sale should be signed before or at the same time as the title transfer. The title transfer is the legal step where the seller signs the back of the title document and the buyer takes it to the DMV to register the vehicle in their name. The bill of sale is the record of the sale itself; the title transfer is the paperwork that makes the buyer the legal owner.
In most states, you have a window of time (often 10 to 30 days) to transfer the title after the sale. During that window, you are still listed as the owner on the registration, even though you no longer own the car. This is why the bill of sale matters — it shows that you sold it on a specific date, so if the car is involved in an accident or gets a parking ticket before the buyer registers it, you have proof you were no longer responsible.
If you are trading in a vehicle to a dealer, the dealer will handle the title transfer as part of the sale. They will give you a bill of sale or sales agreement that shows the trade-in value and any cash you are paying. Keep that document for your records and for your taxes if you are deducting a loss.
What happens if you do not have a bill of sale
If you sold a car without a bill of sale and a dispute arises later, you have no written proof of when the sale happened, what price was agreed to, or what condition the car was in. If the buyer claims you misrepresented the vehicle or the seller claims you never paid, it becomes a "he said, she said" situation. A court would have to decide based on other evidence — text messages, bank records, witness testimony — which is expensive and time-consuming.
For the buyer, the lack of a bill of sale can also cause problems at the DMV. Some states will not register a vehicle without one, or they will delay registration while they investigate. If the seller cannot be reached to provide a bill of sale later, the buyer may have to go through a more complicated process to prove ownership.
If you are buying a used car and the seller does not have a bill of sale, ask them to create one before you hand over money. If they refuse, that is a red flag — it may mean they do not actually own the car or there is a lien on it that they have not disclosed. Do not complete the purchase until you have a bill of sale in hand.
Bill of sale versus title: what each document does
The bill of sale is a record of the transaction — who sold to whom, for how much, on what date. It is not filed with the government. The title is the legal document that proves ownership. It is issued by the state and filed with the DMV. When you sell a car, you sign the back of the title to transfer ownership to the buyer, and they take it to the DMV to register it in their name.
You need both documents to complete a private sale. The bill of sale shows that a sale happened; the title transfer shows that ownership changed hands legally. The DMV uses the title to update its records. The bill of sale is kept by both parties as proof of the transaction. If the title is lost or damaged, you can request a replacement from the DMV, but the bill of sale cannot be replaced — it is a one-time record of that specific sale.
Frequently Asked Questions
Do I need a bill of sale if I am trading in my car to a dealer?
No, the dealer will provide their own sales agreement or bill of sale as part of the trade-in process. Keep a copy for your records. You do not need to create a separate bill of sale.
What if the buyer and I disagree on the sale price after we sign?
The bill of sale is the written record of what you both agreed to. If the price is written on it and both of you signed it, that is the binding agreement. If you have a dispute, the bill of sale is the evidence a court would use to decide who is right.
Can I sell a car without transferring the title right away?
You can sign the bill of sale before the title transfer, but you should transfer the title within the state's important date (usually 10 to 30 days). Until the title is transferred, you remain the legal owner on the DMV's records, so you are liable if the car is involved in an accident or gets tickets. The bill of sale proves you sold it, but the title transfer is what makes the buyer the legal owner.
Is a handwritten bill of sale valid?
Yes. A handwritten bill of sale is valid as long as it includes all required information, is signed and dated by both parties, and is legible. It does not have to be typed or printed. Many private sales use handwritten forms.
What should I do if I lose my copy of the bill of sale after the sale?
Contact the buyer and ask them to provide a copy. If you cannot reach them, you can recreate the bill of sale based on your records — your bank statement showing the payment, text messages about the sale, or your insurance documents showing when coverage ended. Keep these records in case you need to prove the sale happened.