A bill of sale is a written record that you sold a car to someone else, signed by both the seller and buyer
A bill of sale is a document that proves ownership changed hands. It shows who owned the car, who owns it now, the sale price, the date, and the vehicle identification number (VIN). Both the seller and buyer sign it. It is not the same as a title — the title is the legal ownership document issued by your state's motor vehicle department, while a bill of sale is a private record between two people that documents the transaction itself.
A bill of sale protects both parties. For the seller, it proves you are no longer responsible for the car once the buyer takes it. For the buyer, it documents what they paid and confirms the seller had the right to sell it. Many states do not require a bill of sale by law, but having one anyway is the safest choice because it creates a paper trail if a dispute arises later.
Key Takeaways
- A bill of sale documents that ownership of the car transferred from seller to buyer and is signed by both parties.
- Most states do not legally require a bill of sale, but creating one protects you from liability and disputes after the sale.
- The bill of sale should include the VIN, sale price, date, and the full names and addresses of both the seller and buyer.
- You can use a straightforward template or form — many state motor vehicle departments provide free versions online.
- The buyer will need the bill of sale when they register the car in their name with the state.
When you need a bill of sale
You should create a bill of sale whenever you sell a car, whether the sale is required by your state or not. If you sell to a private buyer (not a dealer), a bill of sale is your only written proof that the transaction happened and that you no longer own the vehicle. Without it, the buyer could claim you never transferred ownership, or you could be held liable if the car is used in a crime or accident after the sale.
Some states do require a bill of sale by law before the buyer can register the car. Check your state's motor vehicle department website to see if it is mandatory where you live. Even if your state does not require one, the buyer's lender or insurance company may ask for it. Creating one takes minutes and costs nothing, so there is no downside to having one.
What information goes on a bill of sale
A bill of sale should include the vehicle's full VIN, the make and model, the year, the current odometer reading, and the sale price. Write the price as a number and spell it out in words to prevent tampering. Include the date of the sale, the seller's full name and address, and the buyer's full name and address. Both parties must sign and print their names.
Some states ask for additional details, such as whether the car has a lien (a loan against it) or whether the title is clean or has a salvage or rebuilt brand. Check your state's motor vehicle department website to see if there is a specific form you should use. If there is not, a straightforward template with the basic information above will work.
How to get a bill of sale form
Many state motor vehicle departments provide a free bill of sale form on their website. Search "[your state] motor vehicle department bill of sale" to find it. If your state does not have an official form, you can use a generic template from a legal document website or create your own using the information listed above.
Some car dealers and online marketplaces like Craigslist or Facebook Marketplace provide bill of sale templates as well. The form does not have to be fancy or printed on special paper — handwritten is fine as long as both parties sign it and it includes all the required information. Make two copies: one for the seller and one for the buyer.
Signing and storing your bill of sale
Both the seller and buyer should sign the bill of sale in front of each other. Some states do not require a notary, but having a notary public witness the signatures adds an extra layer of protection and makes the document harder to dispute later. A notary is available at most banks, UPS stores, and some libraries for a small fee.
Keep your copy of the signed bill of sale in a safe place — a filing cabinet, safe deposit box, or digital scan stored in the cloud. The buyer will need their copy when they go to register the car with the state. If you are the seller, hold onto your copy for at least a few years in case questions come up about the sale.
What a bill of sale does and does not do
A bill of sale proves the sale happened and documents the terms, but it does not transfer the title. The title is transferred separately through your state's motor vehicle department, usually by the seller signing the back of the title and the buyer submitting it with a registration form. The bill of sale is a supporting document that shows why the title is being transferred.
A bill of sale also does not may provide the car is in good condition or that there are no hidden problems. It is not a warranty. If the buyer discovers the car has mechanical issues after the sale, the bill of sale alone will not help them get their money back — that depends on whether the seller made false claims or whether your state has consumer protection laws for private car sales. The bill of sale straightforward documents that the transaction occurred.
Frequently Asked Questions
Do I have to notarize a bill of sale?
Most states do not require notarization, but it is recommended. A notary public witnesses the signatures and verifies that both parties signed willingly, which makes the document stronger if a dispute arises later. Notarization costs between five and twenty dollars and takes a few minutes.
What if the buyer does not show up to sign?
Both parties must sign the bill of sale for it to be valid. If the buyer is not present, you can mail them a copy to sign and have them mail it back, or meet at a neutral location like a notary's office. Do not sign on behalf of the buyer — that is not legal.
Can I sell a car without a bill of sale?
You can, but it is risky. Without a bill of sale, you have no proof you sold the car, and the buyer has no proof they bought it. If the car is used in a crime or accident after the sale, you could still be held liable because the title is still in your name. Always create one, even if your state does not require it.
What if I lost my copy of the bill of sale?
Ask the buyer for their copy. If neither of you has it, you can create a new one and both sign it again, noting the original sale date. Keep the new copy in a safe place. If you need to prove the sale happened, the buyer can also provide their copy as evidence.
Does a bill of sale replace the title?
No. The bill of sale documents the sale, but the title is the legal ownership document. The buyer must submit the bill of sale along with the signed title to your state's motor vehicle department to register the car in their name. Without the title transfer, the car is still legally yours.