A bill of sale is a written record that proves you bought or sold a vehicle
A bill of sale is a document that shows a vehicle changed hands from one owner to another. It records who sold the car, who bought it, when the sale happened, how much was paid, and basic details about the vehicle itself—make, model, year, mileage, and vehicle identification number (VIN). The document is signed by both the seller and buyer, creating a paper trail that protects both parties.
You need a bill of sale because it is the first proof that you own the car. The title document—which shows legal ownership—comes later, from your state's Department of Motor Vehicles or equivalent agency. But before you can register the vehicle in your name or transfer the title, you need a bill of sale to show where the car came from and that the transaction was legitimate. Without one, you have no documented proof of purchase, which creates problems when you try to register the vehicle, sell it later, or resolve disputes with the seller.
Key Takeaways
- A bill of sale documents the sale of a vehicle between two people and is signed by both the buyer and seller.
- You need a bill of sale to register a vehicle with your state's Department of Motor Vehicles and to transfer the title into your name.
- The bill of sale should include the VIN, sale price, odometer reading, date of sale, and the full names and addresses of both parties.
- Each state has different rules about what information must appear on a bill of sale and whether it must be notarized.
- Keeping a copy of the signed bill of sale protects you if disputes arise later about the condition of the car or the terms of the sale.
What information goes on a bill of sale
A bill of sale should record the vehicle's VIN (the 17-character identification number found on the dashboard or door jamb), the make, model, year, and current odometer reading. It must also show the sale price—whether that is cash, a trade-in, or another arrangement—and the date of the transaction. Both the seller's and buyer's full legal names, addresses, and signatures are required.
Some states require additional information, such as whether the vehicle has a lien (a loan against it), the condition of the car, or a statement that the seller is transferring the title. A few states require the bill of sale to be notarized, meaning a notary public witnesses the signatures and verifies the identities of both parties. Check your state's Department of Motor Vehicles website to see what your state requires before you sign.
Where to get a bill of sale form
Your state's Department of Motor Vehicles usually provides a free bill of sale form on its website, often as a PDF you can print and fill out by hand. Some states do not provide an official form, which means you can use a generic template or write one yourself, as long as it includes all the required information.
You can also find bill of sale templates through legal document websites, your local DMV office, or your bank if you are financing the vehicle. The form does not have to be fancy or official-looking—it just needs to be clear, complete, and signed by both parties. If your state requires notarization, you will need to take the signed form to a notary public (often available at banks, libraries, or UPS stores) before submitting it to the DMV.
Why both the buyer and seller need to keep a copy
The seller needs a copy to prove they no longer own the vehicle, which protects them if the car is later involved in an accident, gets a parking ticket, or is used in a crime. Without proof of sale, the seller can remain legally responsible for the vehicle even after they have handed over the keys.
The buyer needs a copy to prove ownership during the registration process and to have documentation if a dispute arises—for example, if the seller claimed the car had no accidents but you later discover frame damage, or if the odometer reading was incorrect. A signed bill of sale is your evidence of what was agreed to at the time of purchase.
How a bill of sale connects to vehicle title transfer
The bill of sale is the first step in transferring ownership. After you buy the car and have a signed bill of sale, you take that document to your state's Department of Motor Vehicles along with the seller's title certificate. The DMV uses the bill of sale to verify the transaction and then issues a new title in your name.
If the seller still owes money on the vehicle (has a lien), the bill of sale should note that. The lienholder—usually a bank or credit union—must release the lien before the title can be transferred to you. The bill of sale creates the record that shows when and how the sale happened, which is what the DMV needs to process the title transfer correctly.
What happens if you buy a car without a bill of sale
If you purchase a vehicle and the seller refuses to provide a bill of sale or claims they have lost it, you face real problems. Without it, the DMV may refuse to register the vehicle in your name because they cannot verify the sale was legitimate. You also have no written proof of what you paid, what condition the car was in, or what the seller promised about the vehicle's history.
If a dispute arises—the seller claims you still owe money, or you discover the odometer was rolled back—you have no documentation to support your side of the story. In some cases, the original owner can claim the vehicle was stolen, which could result in the car being seized even after you have paid for it and driven it for months. Always insist on a signed bill of sale before handing over money or keys.
Private sale versus dealer bill of sale
When you buy from a private seller, you create and sign a bill of sale together. When you buy from a dealership, the dealer usually provides their own bill of sale or sales contract, which serves the same purpose. A dealer's document is often more detailed and may include warranties, financing terms, or trade-in information.
The legal function is the same in both cases: the document proves the vehicle was sold and records the basic terms of the transaction. However, a dealer's paperwork may be more complex because it often includes additional agreements about financing, warranties, or return policies. A private sale bill of sale is typically simpler—just the vehicle details, price, and signatures.
Frequently Asked Questions
Do I need a bill of sale if I am buying from a dealership?
Yes, though dealerships provide their own sales contract or bill of sale rather than a blank form. That document serves the same purpose and is what you will bring to the DMV to register the vehicle. Keep a copy for your records.
What if the seller and I agree on a price but do not write it down on the bill of sale?
The bill of sale should show the actual sale price, even if you paid in cash or made a private arrangement. If you leave the price blank or write "gift," the DMV may assess taxes based on the vehicle's market value instead, which could cost you more. Be honest about what you paid.
Can I use a bill of sale from the internet, or does it have to be my state's official form?
Most states allow you to use a generic template as long as it includes all required information. However, some states have specific forms they prefer or require. Check your state's DMV website first to see if an official form exists; if not, a template from a legal document site will work.
What if I lose my copy of the bill of sale after I have registered the car?
Your state's DMV keeps a record of the title transfer, so you can request a copy of the registration documents from them. However, it is still wise to keep your original signed bill of sale in a safe place, because it is your proof of the original purchase terms if a dispute arises later.
Does a bill of sale have to be notarized?
Only some states require notarization. Check your state's DMV website to see if notarization is mandatory where you live. If it is required and you submit an unnotarized bill of sale, the DMV will reject it and ask you to have it notarized before resubmitting.