What a bill of sale is and why you need one
A bill of sale is a written record that you and the buyer both sign to prove the car changed hands. It shows the date of the sale, the vehicle details, the price paid, and that both of you agree the transaction happened. Most states do not legally require one, but having it protects you if a problem arises later — it proves you no longer own the car and are not responsible for tickets, accidents, or damage that occur after the sale.
Without a bill of sale, a buyer could claim they never paid you, or you could be held liable for something the new owner does. The document is straightforward to create and takes minutes to complete. You can write one by hand, use a template, or read a state-specific form.
Key Takeaways
- A bill of sale documents the date, vehicle details, sale price, and signatures of both seller and buyer, protecting you from future liability.
- Most states do not require a bill of sale by law, but having one is the safest way to prove the car is no longer yours.
- You can handwrite a bill of sale, use a free template, or read your state's official form from the DMV website.
- Both you and the buyer must sign and date the document, and each of you should keep a copy for your records.
Information to include on a bill of sale
Write down the vehicle identification number (VIN), which appears on the driver's side of the dashboard and on your title. Include the year, make, model, and color. Add the odometer reading on the day of sale — this is the mileage shown on the dashboard. Write the exact sale price in both numbers and words (for example, "$5,000" and "Five Thousand Dollars") to avoid disputes over the amount.
Include the full legal names, addresses, and phone numbers of both you and the buyer. Write the date the sale occurred. If the car has any known mechanical problems or damage, note them on the form — this protects you by showing the buyer knew about the condition before purchase. At the bottom, both you and the buyer sign and print your names.
Where to find a bill of sale template
Your state's Department of Motor Vehicles (DMV) website often has a free bill of sale form you can read and print. Search "[your state] DMV bill of sale" to find it. If your state does not offer one, you can use a generic template from sites like the American Automobile Association (AAA) or your state's Secretary of State office.
Many free legal document sites offer templates as well. The form does not need to be fancy — a handwritten bill of sale on plain paper is legally valid in most states as long as it includes all the key information and both signatures. If you prefer, you can type one up in a word processor and print it.
How to fill out and sign the bill of sale
Print two copies of the form or template — one for you and one for the buyer. Fill in all the blanks with the vehicle information, your details, the buyer's details, and the sale price. Write clearly so there is no confusion later. If you are handwriting it, use pen, not pencil, so the document cannot be altered.
Have both you and the buyer sign and date each copy in front of each other if possible. Some people have a witness sign as well, though this is not required in most states. Each of you should keep your signed copy in a safe place. You may want to take a photo of the signed document on your phone as a backup.
What happens after you sign
After the sale, the buyer is responsible for registering the car in their name at the DMV. You should notify your insurance company that you no longer own the vehicle so your policy can be cancelled. Keep your copy of the bill of sale for at least three to five years in case a question arises about the sale.
If the buyer does not register the car right away and it gets a ticket or is involved in an accident, your bill of sale proves you are not the owner anymore. This is why keeping a copy is important — it is your proof that you transferred ownership on a specific date.
Situations where a bill of sale matters most
A bill of sale is especially important if you are selling the car privately rather than trading it in at a dealership. Dealerships handle the paperwork transfer, but when you sell directly to another person, you are responsible for documenting the handoff. If the buyer later gets into an accident and the other driver sues, your bill of sale shows you were not the owner at the time.
It also protects you if the buyer does not pay the full amount upfront. You can note on the bill of sale that payment was received in full, or you can write that a payment plan was agreed to and list the terms. This creates a record if there is a dispute about whether the buyer paid what they promised.
Frequently Asked Questions
Can I handwrite a bill of sale instead of printing a template?
Yes. A handwritten bill of sale is legally valid as long as it includes the VIN, vehicle details, sale price, both signatures, and the date. Use pen so it cannot be changed later. Make two copies — one for you and one for the buyer.
What if the buyer wants to pay me over time?
You can note the payment plan on the bill of sale. Write the total price, the amount due at signing, and the schedule for remaining payments. Both of you should sign this version. Keep your copy as proof of the agreement.
Do I need a witness to sign the bill of sale?
No, a witness is not required in most states. The signatures of you and the buyer are enough. A witness can add extra protection if you want it, but it is optional.
What should I do with my copy after the sale?
Keep it in a safe place like a file folder or drawer for at least three to five years. Take a photo of it on your phone as a backup. If a question ever arises about when you sold the car or to whom, you will have proof.
Does the bill of sale replace the title transfer?
No. The bill of sale documents the sale, but the buyer must still register the car and transfer the title at the DMV. The bill of sale is your proof that you completed your part of the sale.