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 the transfer of ownership from one person to another. When you buy or sell a car, truck, or motorcycle, a bill of sale records the date, the vehicle details, the price paid, and the signatures of both the buyer and seller. It serves as proof that the transaction happened and protects both parties if questions arise later about who owns the vehicle or what was agreed to.
The bill of sale is separate from the vehicle's title — the legal document that shows who owns the car. You need both documents to complete a vehicle purchase. The bill of sale is often the first step; you create it at the time of sale, then use it to explore for a new title in your name at your state's motor vehicle department.
Most states do not require a bill of sale by law, but many motor vehicle departments ask for one when you register a vehicle in your name. Private sellers and buyers use them to document the transaction. Dealerships typically create their own sales documents instead, though the principle is the same.
Key Takeaways
- A bill of sale records the vehicle identification number, sale price, date, and signatures of both buyer and seller.
- You will need the bill of sale when you go to your state's motor vehicle department to register the vehicle and transfer the title into your name.
- Most states do not legally require a bill of sale, but many motor vehicle departments will ask for one as proof of the transaction.
- A bill of sale protects both the buyer and seller by creating a written record of what was agreed to and when the sale occurred.
What information goes on a bill of sale
A bill of sale should include the vehicle identification number (VIN), which is a 17-character code unique to that car. You can find the VIN on the dashboard, on the vehicle's title, or on insurance documents. The document should also list the make, model, year, and color of the vehicle, along with the odometer reading at the time of sale.
Both the buyer and seller must sign and print their names on the bill of sale. Include the date of the sale, the sale price, and the condition of the vehicle — for example, whether it is being sold as-is or with any warranty. Some people also note whether the sale includes any equipment or accessories, such as floor mats or a spare tire, to avoid confusion later.
The seller should provide their name, address, and phone number, as should the buyer. If either party is a business rather than an individual, include the business name and the name of the person signing on behalf of the business. Some states ask for driver's license numbers on the bill of sale as well, though this is not universal.
How to get a bill of sale form
Your state's motor vehicle department website usually has a bill of sale form you can read and print. Search "[your state] bill of sale form" to find the official version. Some states call it a "Notice of Sale" or "Vehicle Sale Form" instead, so check your state's motor vehicle website directly if a general search does not turn up results.
If your state does not provide an official form, you can use a generic bill of sale template from a legal document website or create your own. The form does not need to be fancy — handwritten bills of sale are legally valid in most states as long as they include the key information and both parties sign. What matters is that the document clearly shows what was sold, for how much, and when.
Some title transfer services and online legal document companies offer bill of sale templates as well. These are usually free or low-cost. Make sure any template you use includes space for the VIN, both parties' signatures, the sale date, and the sale price.
When you need a bill of sale as a buyer
As a buyer, you need a bill of sale to prove you own the vehicle when you go to register it. When you arrive at your state's motor vehicle department to transfer the title into your name, you will bring the bill of sale along with the seller's title, proof of insurance, and identification. The motor vehicle department uses the bill of sale to confirm that the sale was legitimate and to process your title transfer.
If you buy from a private seller, ask them to sign a bill of sale before you hand over money. This protects you if the seller later claims they did not sell you the car or if there is a dispute about the condition or price. Keep a copy for your records and give the seller a copy as well.
If you buy from a dealership, the dealership will provide its own sales paperwork instead of a separate bill of sale. That paperwork serves the same purpose and will be accepted by your motor vehicle department.
When you need a bill of sale as a seller
As a seller, a bill of sale protects you by showing that you transferred ownership on a specific date for a specific price. Once the buyer signs the bill of sale, you have proof that you no longer own the vehicle — this matters if the car is later involved in an accident or traffic violation. Without a bill of sale, you could be held responsible for things that happen after you sold it.
After the sale, notify your state's motor vehicle department that you have sold the vehicle. Many states have a form for this, sometimes called a "Notice of Sale" or "Release of Liability." This step removes you from the vehicle's registration and protects you further. Keep a copy of the bill of sale and the release form for your records.
If the buyer does not transfer the title into their name promptly, the vehicle may still be registered in your name. A bill of sale shows that you completed your part of the transaction and can help you prove you are not responsible for the vehicle if problems arise.
Differences between a bill of sale and a title
The title is the legal document issued by your state that proves ownership of the vehicle. It has the vehicle's VIN, the owner's name, and the state seal. The title is what you need to sell the car, register it, or get a loan against it. Only the motor vehicle department can issue or transfer a title.
A bill of sale is a record of the transaction between buyer and seller. It shows that a sale happened and on what terms, but it does not prove legal ownership by itself. You need both the bill of sale and the title to complete a vehicle purchase. The bill of sale is the evidence that you bought it; the title is the proof that you own it.
When you buy a used car, the seller gives you the title and you both sign a bill of sale. You then take both documents to the motor vehicle department, which issues a new title in your name. The bill of sale is your proof of purchase; the new title is your proof of ownership.
What happens if you lose the bill of sale
If you have already transferred the title into your name, a lost bill of sale is usually not a problem. The title in your name is the proof of ownership that matters. However, if you have not yet registered the vehicle and you lose the bill of sale, you may need to ask the seller for another copy or recreate it with their help.
Some motor vehicle departments will accept a title transfer without a bill of sale if you can show other proof of the transaction, such as a bank record of the payment or a text message exchange. Call your state's motor vehicle department to ask what documents they will accept if you do not have the original bill of sale.
To avoid this problem, keep copies of the bill of sale in at least two places — one in your vehicle records and one at home. If you sell the vehicle later, you may also need the bill of sale to prove what you paid for it, which can affect the value you claim on insurance or taxes.
Frequently Asked Questions
Do I have to use my state's official bill of sale form?
No. Most states do not require you to use an official form. A handwritten bill of sale or one from a template is legally valid as long as it includes the VIN, both parties' signatures, the sale date, and the sale price. Check your state's motor vehicle website to see if they have a preferred form, but you are not required to use it.
What if the seller will not sign a bill of sale?
Do not complete the purchase. A bill of sale is your proof that you bought the vehicle and protects you from liability after the sale. If the seller refuses to sign, it is a red flag that something may be wrong with the sale or the vehicle's history. Walk away from the deal.
Can I write a bill of sale by hand?
Yes. A handwritten bill of sale is legally valid in most states. Write clearly, include all the key information (VIN, make, model, year, sale price, date, and both signatures), and keep a copy for your records. Handwritten bills of sale are common in private vehicle sales.
Do I need a bill of sale if I buy from a dealership?
No. Dealerships provide their own sales paperwork that serves the same purpose as a bill of sale. That paperwork will be accepted by your motor vehicle department when you transfer the title. You do not need a separate bill of sale form.
Should I include the sale price on the bill of sale?
Yes. The sale price should be on the bill of sale. This protects both buyer and seller by creating a clear record of what was agreed to. It also helps the motor vehicle department process the title transfer and may be used for tax or insurance purposes.