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

A bill of sale is not the same as a title. The title is the legal document that proves ownership and is registered with your state's motor vehicle department. A bill of sale is a simpler paper — usually one or two pages — that documents the transaction itself: who sold the car, who bought it, what they paid, and when the sale happened. You create it at the time of sale, and both parties keep a copy.

Most states do not require a bill of sale by law, but many do require you to present one when you register the car in your name at the DMV. Even in states where it is optional, having one protects both buyer and seller. For the buyer, it proves you paid for the car and when. For the seller, it proves they handed over the vehicle and received payment — which protects them if the car is later involved in an accident or crime while still registered in their name.

You can read a template from your state's DMV website, use a generic template from a legal document site, or write one yourself on plain paper. There is no single official form, though some states provide a recommended version. What matters is that it contains the key facts and both parties sign it.

Key Takeaways

  • A bill of sale records the sale itself — who sold, who bought, what price, and when — and is separate from the title document.
  • Most states do not legally require a bill of sale, but many require you to show one when registering the car at the DMV.
  • Both the seller and buyer should sign and keep a copy, even if your state does not mandate it.
  • The bill of sale should include the vehicle identification number (VIN), the odometer reading, and any known defects or damage.
  • A bill of sale protects the seller by proving they no longer own the car after the sale, which matters if the vehicle is later involved in an accident or legal issue.

What Information Goes on a Bill of Sale

A bill of sale should contain the VIN (the 17-character identification number found on the driver's side dashboard and on the title), the year, make, and model of the car. Include the odometer reading at the time of sale — this is important because it documents the mileage and can help catch odometer fraud. Write down the sale price and the date of the sale.

Add the full names, addresses, and phone numbers of both the seller and the buyer. If either party is a business or dealer, use the business name and address. Include the condition of the car — note any major damage, mechanical issues, or missing parts. Many templates include a line for "as-is" sales, meaning the buyer accepts the car in its current condition with no warranty from the seller.

Some states ask for the title number on the bill of sale, and some ask whether the title is clear (no liens) or has a lien against it. If there is a lien — meaning a lender still has a claim on the car — that must be disclosed. Check your state's DMV website to see if there are specific fields required in your state.

How a Bill of Sale Looks in Practice

A typical bill of sale is formatted like a straightforward contract. It starts with a heading: "Bill of Sale" or "Vehicle Bill of Sale." Below that, it states the date of the sale and identifies the seller and buyer by name and address.

The body of the document describes the vehicle — VIN, year, make, model, color, and odometer reading. It then states the sale price and confirms that the buyer has paid that amount (or will pay it by a certain date, if payment is delayed). It includes a statement that the seller transfers ownership to the buyer and that the car is sold as-is, unless the seller is providing a warranty.

At the bottom, both the seller and buyer sign and print their names. Some versions include a line for the date each person signed. The document does not need to be notarized in most states, though some people choose to have it notarized for extra protection.

Where to Get a Bill of Sale Template

Your state's DMV website often provides a recommended bill of sale form or a link to one. 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 sites like LegalZoom, Rocket Lawyer, or even a straightforward Google Docs template.

You can also write one yourself on plain paper or type it in a word processor. There is no requirement that it be printed on special paper or use a specific format. What matters is that it contains the key information and is signed by both parties.

If you are buying or selling through a dealer, the dealer will usually provide the bill of sale as part of the paperwork. If you are doing a private sale, you are responsible for creating it — though the seller may have one ready.

Signing and Storing Your Copy

Both the seller and buyer should sign the bill of sale in front of each other, if possible. Each person should keep a copy — the buyer keeps theirs to present at the DMV when registering the car, and the seller keeps theirs as proof they no longer own the vehicle.

If you are the buyer, store your copy with your other car documents — registration, insurance papers, and maintenance records. You will need it when you go to the DMV to register the car in your name. If you are the seller, keep your copy for at least a few years in case questions arise about the sale.

Some people photograph or scan their bill of sale and store a digital copy as well. This is a good practice, especially if you are selling the car and want proof of the transaction if the buyer later claims a problem.

What Happens if You Do Not Have a Bill of Sale

If you bought a car without a bill of sale, you can still register it at the DMV — you will just need other proof of purchase. A receipt from the seller, a cancelled check, a bank transfer record, or an email confirming the sale can work. However, having a formal bill of sale is cleaner and faster.

If you are selling a car and the buyer does not ask for a bill of sale, you should create one anyway and ask them to sign it. This protects you. If the car is involved in an accident or crime while still registered in your name, you have proof that you sold it and are no longer responsible.

Some states require the seller to sign the back of the title itself, which serves a similar purpose to a bill of sale. Check your state's requirements when you sell — the DMV website will tell you what the seller must do to transfer ownership.

Frequently Asked Questions

Do I need a bill of sale if I am buying from a dealer?

No — dealers provide their own paperwork, which serves the same purpose. However, if you are buying from a private seller, you should create a bill of sale or ask the seller to provide one. Even if your state does not require it, having one protects both of you.

What if the seller will not sign a bill of sale?

That is a red flag. A legitimate seller should have no reason to refuse. If someone will not sign, do not buy the car — it may be stolen, have an outstanding loan against it, or have other legal problems. A bill of sale is basic protection for both parties.

Can I use a bill of sale from online instead of my state's form?

Yes, in most states. As long as it contains the required information — VIN, sale price, date, and signatures — it will work at the DMV. However, check your state's DMV website first, because some states have specific requirements or preferred formats.

Does a bill of sale need to be notarized?

Not in most states. A notarized bill of sale adds an extra layer of proof, but it is not required. If you want one notarized, you can take it to a bank, UPS store, or notary public — there is usually a small fee, typically $5 to $15.

What if I lost my copy of the bill of sale after I bought the car?

You can ask the seller for another copy, or you can contact the DMV — your registration documents will show the purchase date and price. If you need to prove you own the car, your registration and title are the official documents; the bill of sale is just supporting proof.