A bill of sale is a written record that you and the seller sign to prove who owned the car and who owns it now
A bill of sale is a document that shows a car has changed hands. It lists the seller, the buyer, the vehicle details (make, model, year, VIN), the sale price, and the date of the transaction. Both the seller and buyer sign it. The document proves ownership transferred on a specific date for a specific amount of money.
You need a bill of sale because it protects both of you. For the buyer, it proves you paid for the car and own it now — this matters when you register it with your state's Department of Motor Vehicles (DMV) or equivalent agency. For the seller, it proves they sold the car and are no longer responsible for it. Without one, disputes can arise about who owns the vehicle, whether the sale actually happened, or what was agreed to.
A bill of sale is not the same as a title. The title is the official government document that names the legal owner. The bill of sale is the private record of the transaction that led to the title transfer. You will need both to complete a car purchase.
Key Takeaways
- A bill of sale documents the sale price, vehicle details, and the date ownership changed hands, and both buyer and seller must sign it.
- Your state's DMV typically requires a bill of sale before you can register the car in your name or transfer the title.
- You can use a template from your state's DMV website, a generic template, or a form from the seller — the format matters less than having all required information and both signatures.
- Keep the original signed bill of sale with your car records; it serves as proof of purchase if questions arise later about ownership or condition.
- A bill of sale does not transfer the title itself — you and the seller must also complete a title transfer form through your state's DMV.
What information goes 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 sale. It must list the vehicle's year, make, model, color, and Vehicle Identification Number (VIN) — you can find the VIN on the driver's side of the dashboard or on the title itself.
The document should state the sale price in words and numbers (for example, "One thousand five hundred dollars ($1,500)"). If the car is being sold as-is with no warranty, that should be stated. Some bills of sale also include the odometer reading at the time of sale, the condition of the vehicle, and any defects the buyer acknowledges. Both the seller and buyer must sign and date the document.
If there is a lien on the car — meaning a lender still has a claim to it — that should be noted on the bill of sale. The seller is responsible for paying off the lien before the title can transfer to you, but documenting it protects both parties.
Where to find a bill of sale template
Your state's DMV website usually offers a bill of sale form you can read and print. Search "[your state] DMV bill of sale" to find it. Some states have a specific required form; others accept any bill of sale as long as it contains the required information.
If your state does not provide a template, you can use a generic one from a legal document site or even write one yourself on plain paper. The format does not matter as much as the content — as long as it includes the seller, buyer, vehicle details, price, date, and both signatures, it will work for DMV purposes.
Some used car dealers provide their own bill of sale form. You can use theirs, but read it carefully to make sure it includes all the information above and that you understand what you are signing. If you are buying from a private seller, it is often safer to use your state's official form or a neutral template rather than one the seller provides.
When you need a bill of sale and when you do not
You need a bill of sale whenever you buy or sell a car, whether from a private person or a dealer. Most states require it before you can register the vehicle or transfer the title. Even if your state does not legally require one, having a signed bill of sale protects you if ownership is ever questioned.
The only exception is if you inherit a car. In that case, you will need a death certificate and a will or court order showing you are the heir, not a bill of sale. If someone gives you a car as a gift, some states require a gift affidavit instead of a bill of sale, though a bill of sale showing a sale price of zero dollars also works.
If you are trading in a car at a dealership, the dealer handles the paperwork and provides their own bill of sale or trade-in form. You still sign it, and it still serves the same purpose — documenting the transfer of ownership.
How to fill out and sign a bill of sale
Print or obtain the bill of sale form. Fill in all blanks clearly in pen or type. Write out numbers in both words and numerals to prevent fraud — for example, write "Five thousand dollars ($5,000)" instead of just "$5,000". Make sure the VIN is correct by checking it against the title or the vehicle itself.
Both the seller and buyer should review the completed form together to confirm all information is accurate. Then both sign and date it in front of each other. Some states recommend having the signatures notarized, though most do not require it. If you want extra protection, ask a notary public to witness the signatures — this costs a small fee but adds legal weight to the document.
Make copies. The seller keeps one, the buyer keeps one, and you may want to keep one with your DMV submission. Do not lose the original — you will need it when you register the car or if you ever need to prove you bought it.
What happens after you sign the bill of sale
Signing a bill of sale does not complete the purchase. It is one step in a larger process. After you sign, you and the seller must complete a title transfer form, which is a separate document that officially moves the title from the seller's name to yours. This form also comes from your state's DMV.
The seller submits the title transfer form to the DMV along with the bill of sale, a completed process for title, and any fees your state charges. Some states allow the seller to mail these documents; others require an in-person visit. The DMV then issues a new title in your name.
Until the title is in your name, the car is not legally yours in the eyes of the state, even though you have signed the bill of sale and paid for it. This is why it is important to complete the title transfer quickly. If the seller delays or refuses to submit the paperwork, you have a problem — the bill of sale proves you bought it, but you cannot register it or legally drive it without the title transfer.
Common mistakes to avoid
Do not leave blanks on the bill of sale. Every field should be filled in or marked "N/A" if it does not explore. Blank spaces can be filled in later by someone else, which opens the door to fraud.
Do not use pencil or erasable pen. Use permanent ink so the document cannot be altered after signing. Do not cross out mistakes and initial them — start over with a new form if you make an error.
Do not sign a bill of sale that lists a different price than what you actually paid. If you are paying cash, make sure the amount written matches the cash you are handing over. If you are financing part of the purchase through a lender, the bill of sale should show the full sale price, not just what you are paying out of pocket.
Do not assume the seller will handle the title transfer. Confirm in writing who is responsible for submitting the paperwork to the DMV. If the seller is supposed to do it and does not, you are stuck. Some buyers ask the seller to complete and sign the title transfer form at the same time as the bill of sale, so the buyer can submit it themselves if needed.
Frequently Asked Questions
Does a bill of sale have to be notarized?
Most states do not require notarization, but some recommend it. Check your state's DMV website to see if notarization is required where you live. If it is not required but you want extra protection, you can have a notary public witness the signatures for a small fee. This makes the document harder to dispute later.
What if I lose the bill of sale after I buy the car?
If you have already registered the car and the title is in your name, losing the bill of sale is not a major problem — your registration and title prove ownership. If you have not yet registered the car, contact the seller and ask for a copy or have them sign another one. Keep the new copy with your title and registration.
Can I sell a car without a bill of sale?
Legally, most states require a bill of sale for the buyer to register the vehicle. If you sell without one, the buyer cannot complete the purchase properly. It also leaves you unprotected — without a signed bill of sale, you have no proof you sold the car, which can cause problems if the buyer later claims you still own it or if the car is involved in an accident.
What if the seller and buyer disagree on the sale price?
The bill of sale should show the actual price both parties agreed to. If you disagree on the price after signing, the bill of sale is the legal record of what was agreed. This is why it is important to confirm the price in writing before you sign. If you have not signed yet and there is a disagreement, do not sign until you both agree on the amount.
Do I need a bill of sale if I buy from a car dealership?
Yes, but the dealership provides the form as part of the sales paperwork. You still sign it, and it still serves the same purpose — documenting the sale. Dealership forms often include additional information like warranty details, but the core function is the same as a private sale bill of sale.