A bill of sale is a written record that you and the other party sign to prove that a car changed hands and for how much
A bill of sale is a document that shows a vehicle was sold from one person to another on a specific date for a specific price. It names the seller, the buyer, and describes the car — year, make, model, VIN, and odometer reading. Both parties sign it. That's the core of it.
The bill of sale is not the title itself. The title is the legal ownership document that the state issues. The bill of sale is the proof that a transaction happened — it's what you show to the DMV or your state's equivalent when you're transferring that title into your name, and it's what the seller keeps to show they no longer own the vehicle.
You need a bill of sale because it creates a paper trail. If something goes wrong later — the car has a lien you didn't know about, the seller didn't actually own it, or a dispute arises about the price or condition — the bill of sale is your evidence of what was agreed to and when. For the seller, it proves they sold the car and are no longer responsible for it.
Key Takeaways
- A bill of sale documents the date, price, and vehicle details of a car transaction and must be signed by both buyer and seller.
- You will need the bill of sale when you register the car with your state's DMV or equivalent agency to transfer the title into your name.
- The bill of sale protects both parties: the buyer has proof of purchase, and the seller has proof they no longer own the vehicle.
- Most states do not require a specific form, but using a standard template reduces the chance of disputes and ensures you include all necessary information.
- The bill of sale should include the VIN, odometer reading, sale price, and a statement that the car is sold as-is unless otherwise noted.
What information must go on a bill of sale
A 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 describe the vehicle: year, make, model, body style, color, and the Vehicle Identification Number (VIN). The odometer reading on the day of sale goes on there too — this protects against odometer fraud and is required by federal law in most states.
The sale price must be stated in writing. Some people leave this blank or write "as is" to avoid taxes, but this is a mistake. The price you actually paid is what goes there. The bill of sale should also note the condition of the car — whether it's sold as-is with no warranty, or whether the seller is making any promises about its condition or mechanical state.
Both the seller and buyer sign and date the document. Some states require the signatures to be notarized, but most do not. Check your state's DMV website to see if notarization is required where you live. If it is, you'll need to take the signed bill of sale to a notary public before you submit it to the DMV.
Where to get a bill of sale form
You don't have to use an official government form. Most states don't provide one. Instead, you can read a template from your state's DMV website, use a form from a legal document service like LegalZoom or Rocket Lawyer, or create one yourself as long as it includes all the required information.
Some dealerships provide their own bill of sale forms when you buy from them. If you're buying from a private seller, ask them if they have a form, or bring one with you. If neither of you has one, read a template before you meet. A few minutes of preparation prevents confusion and disputes later.
The form doesn't have to be fancy or official-looking. It can be typed or handwritten, as long as it's legible and both parties sign it. What matters is that it clearly states who sold what to whom, for how much, and on what date.
When you need to present the bill of sale to the DMV
You'll bring the bill of sale to your state's DMV (or equivalent agency — some states call it the Secretary of State or Department of Motor Vehicles) when you register the car and transfer the title into your name. This is usually done within 10 to 30 days of purchase, depending on your state. Check your state's specific important date.
You'll also need the original title from the seller, proof of insurance, and a completed registration process. The bill of sale is the document that proves you bought the car and establishes the purchase price, which the DMV uses to calculate registration fees and sales tax if applicable in your state.
If you buy from a dealership, the dealer usually handles the title transfer and provides the bill of sale as part of the paperwork. If you buy from a private seller, you are responsible for bringing the bill of sale and the title to the DMV yourself.
Why the bill of sale protects both buyer and seller
For the buyer, the bill of sale is proof that you paid for the car and own it as of that date. If the seller later claims you didn't pay, or if someone else shows up claiming ownership, the signed bill of sale is your evidence. It also protects you if the car has a hidden lien — a loan the seller still owes on the vehicle. The bill of sale shows when you took possession, which can matter in disputes about who is responsible for that debt.
For the seller, the bill of sale proves they sold the car and are no longer the owner. This is critical. If the car is involved in an accident, gets a parking ticket, or is used in a crime after the sale, the seller needs proof they no longer owned it. The bill of sale, combined with the title transfer, removes them from liability.
Without a bill of sale, either party can claim the transaction never happened or happened on a different date or for a different price. The document is inexpensive to create and takes minutes to sign. It's one of the most important protections in a private car sale.
What happens if you don't have a bill of sale
If you buy a car and don't get a bill of sale, you can still register it with the title alone — the title is the legal ownership document. However, you lose the paper trail that proves when you bought it, what you paid, and the condition it was in at the time of sale.
This creates problems if the seller later disputes the sale, if the car has undisclosed damage or mechanical issues, or if there's a lien on the vehicle that surfaces after you've already paid. You'll have a harder time proving your case without written documentation of the transaction.
If you've already bought a car without a bill of sale, you can still create one after the fact. Both parties sign it, and it's dated with the actual sale date. It won't be as strong as a bill of sale signed at the time of sale, but it's better than nothing. Ask the seller to sign one as soon as possible.
Bill of sale requirements vary by state
Most states don't require a specific bill of sale form or format. However, some states have their own templates or requirements. A few states require notarization. Some require the odometer reading to be on a separate form. A handful require the bill of sale to be filed with the DMV along with the title transfer.
Before you buy or sell a car, check your state's DMV website for any specific rules. The time to find out is before you meet the other party, not after you've already signed something. If your state has a required form, use it. If it doesn't, use a standard template and make sure it includes the VIN, odometer reading, sale price, and signatures from both parties.
Even if your state doesn't require a bill of sale, creating one is a best practice. It costs nothing and protects both parties. Treat it as a standard part of any car transaction, whether you're buying or selling.
Frequently Asked Questions
Do I need a bill of sale if I'm buying from a dealership?
Dealerships provide their own bill of sale or sales contract as part of the paperwork. You don't need to create a separate one. The dealer's document serves the same purpose and is usually more detailed, including warranty information and any add-ons you purchased.
Can I write a bill of sale by hand, or does it have to be typed?
Handwritten bills of sale are valid in most states as long as they're legible and both parties sign them. Typed is cleaner and easier to read, but handwritten works. Make sure the handwriting is clear enough that the DMV can read the VIN and other details.
What if the seller won't sign a bill of sale?
Don't buy the car. A seller who refuses to sign a bill of sale is a red flag. It suggests they may not actually own the vehicle, there's a lien on it, or they're trying to hide something. A legitimate seller has no reason to refuse a straightforward, standard document.
Do I need to notarize the bill of sale?
Most states don't require notarization. Check your state's DMV website to be sure. If notarization is required, you'll need to take the signed bill of sale to a notary public — banks, UPS stores, and some libraries offer this service for a small fee, usually five to fifteen dollars.
What if I lost the bill of sale after I bought the car?
If you've already registered the car and the title is in your name, you don't need the bill of sale anymore for registration purposes. However, keep a copy for your records in case questions arise later about the purchase. If you need a copy, ask the seller for one or recreate it with their signature if possible.