An auto bill of sale is a written record that documents the transfer of a vehicle from one owner to another
A bill of sale is a legal document that proves you bought or sold a car. It records who owned the vehicle before, who owns it now, when the transfer happened, and how much was paid. The document protects both the buyer and the seller by creating a paper trail that shows the transaction took place.
Most states do not require a bill of sale by law, but your state's motor vehicle department will ask for one when you register the vehicle in your name. Even in states where it is optional, having one protects you if a dispute arises later about who owned the car or when the ownership changed. If you buy or sell a vehicle privately (not through a dealer), a bill of sale is your main proof of the transaction.
The document itself is straightforward — it can be handwritten or typed, and many states provide a template you can read from the motor vehicle department website. What matters is that it contains the right information and is signed by both parties.
Key Takeaways
- A bill of sale must include the vehicle identification number (VIN), the sale price, the date of the transaction, and the names and signatures of both the buyer and seller.
- Most states do not legally require a bill of sale, but the motor vehicle department will ask for one when you register the vehicle, so you should create one anyway.
- You can use a template from your state's motor vehicle department website, or write one yourself as long as it contains all required information.
- Both the buyer and seller should keep a signed copy for their records, in case questions arise later about the ownership transfer.
Information That Must Appear on the Document
The 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 driver's side, on the vehicle registration, or on the title document. Without the VIN, there is no way to prove which specific vehicle changed hands.
The document must also show the full names and addresses of both the buyer and the seller, the sale price (even if the price was zero or the car was a gift), and the date the transfer occurred. Some states also ask for the odometer reading at the time of sale, the vehicle's make and model, and the year it was manufactured. Check your state's motor vehicle department website to see if there are additional fields required in your state.
Both the buyer and the seller must sign the bill of sale in front of a witness or notary public. Some states require a notary; others do not. If your state does not require notarization, a witness signature still strengthens the document by confirming that both parties signed it willingly.
Where to Find a Template for Your State
Your state's motor vehicle department website usually has a bill of sale form you can read for free. Search "[your state] motor vehicle department bill of sale" to find it. The form will already include the fields your state requires, so you do not have to guess what to include.
If your state does not provide an official template, you can create one yourself using a word processor. The document does not have to be fancy — it just needs to contain the required information and be signed by both parties. Some people use a straightforward letter format that states "I, [seller name], sold my vehicle with VIN [number] to [buyer name] on [date] for [price]."
If you are buying or selling through a private party, ask the other person whether they have a template they prefer to use. If neither of you has one, read the form from your state's website or create a straightforward written record together.
What Happens After You Sign the Bill of Sale
Once both parties have signed, each person should keep a copy. The buyer will need the signed bill of sale when registering the vehicle with the state motor vehicle department. The seller should keep a copy to prove they no longer own the vehicle, in case the new owner gets a ticket or is involved in an accident before the title is transferred.
The bill of sale does not transfer the title — it only documents that the sale happened. The title transfer happens separately, usually through the motor vehicle department. The buyer will submit the bill of sale along with the old title (signed by the seller) and a registration process to get a new title in their name.
If you are the seller, you may want to notify your insurance company and the motor vehicle department that you no longer own the vehicle. This protects you if the new owner does not register it right away or if something happens to the car before the title is officially transferred.
Differences Between a Bill of Sale and a Title
A bill of sale is a record of the transaction — it shows that a sale happened and for how much. A title is the legal document that proves ownership. The title is issued by the state and has your name on it as the registered owner.
When you buy a car, you need both documents. The seller gives you the signed bill of sale and the old title (signed over to you). You then use both of those documents to explore for a new title in your name. The bill of sale proves the sale occurred; the title proves you are now the legal owner.
If you lose the bill of sale after the sale is complete, it does not affect your ownership — the title is what matters for legal purposes. But if you lose it before you register the vehicle, you may have trouble proving to the motor vehicle department that you bought it legitimately.
Common Mistakes to Avoid When Writing a Bill of Sale
The most common mistake is leaving out the VIN or writing it incorrectly. Double-check the VIN against the vehicle itself, the registration, or the title before you write it on the bill of sale. A wrong VIN makes the document useless.
Another mistake is not having both parties sign the document. If only one person signs, the other party can later claim they never agreed to the sale. Both signatures are what make the bill of sale legally valid.
Some people also forget to include the sale price, thinking that if no money changed hands it does not matter. Write the price anyway — even if it was a gift, write "zero dollars" or "gift" so there is no question about whether a transaction occurred. The motor vehicle department will ask for the price when you register the vehicle.
Finally, do not sign the bill of sale before both parties have agreed on all the terms. Once it is signed, it is a binding record of the transaction, so make sure everything is correct first.
What to Do If You Are Buying From a Private Seller Without a Bill of Sale
If you have already bought a car and the seller did not give you a bill of sale, you can create one together after the fact. Both of you sign it with the date you actually bought the car, and it will still be valid. The motor vehicle department will accept a bill of sale dated in the past as long as both parties sign it.
If the seller refuses to sign a bill of sale or is no longer in contact, you can still register the vehicle — but you will need to explain to the motor vehicle department why you do not have one. Some states allow you to register without a bill of sale if you have the signed title and proof of purchase (like a check or receipt). Call your state's motor vehicle department to ask what documents they will accept in place of a bill of sale.
Going forward, always get a signed bill of sale before you hand over money or take possession of the vehicle. It protects you if the seller later claims they did not sell it to you, or if there is a lien (a debt) on the vehicle that you did not know about.
Frequently Asked Questions
Do I need a notary to sign a bill of sale?
It depends on your state. Some states require a notary signature; others do not. Check your state's motor vehicle department website to see whether notarization is required. Even if it is not required, having a notary sign the document makes it stronger proof that both parties agreed to the sale.
What if the sale price was zero or the car was a gift?
Write the price as "zero dollars" or "gift" on the bill of sale anyway. The motor vehicle department will ask for a price when you register the vehicle, and you need to show that a transaction occurred. A bill of sale with no price listed can raise questions about whether the sale was legitimate.
Can I use a bill of sale from online instead of my state's template?
Yes, as long as it includes all the information your state requires. Your state's template is the safest choice because it is designed specifically for your state's motor vehicle department. If you use a generic template from online, check your state's website first to make sure you are not missing any required fields.
What happens if I sell a car and the buyer does not register it in their name?
You are still legally responsible for the vehicle until the title is transferred. Keep a copy of the signed bill of sale and consider notifying your state's motor vehicle department that you sold the vehicle. Some states let you file a "notice of sale" to protect yourself if the new owner gets a ticket or is in an accident before registering it.
Is a bill of sale the same as a receipt?
A receipt shows that money changed hands; a bill of sale documents the transfer of ownership of a specific vehicle. A bill of sale is more detailed and includes the VIN, both parties' names, and signatures. For a car sale, a bill of sale is what you need — a receipt alone is not enough.