A bill of sale is a written record that you and the seller (or buyer) both sign to prove who owned a vehicle and when ownership changed hands
An auto bill of sale is a document that transfers ownership of a car, truck, or motorcycle from one person to another. It records the vehicle's details, the sale price, the date of the transaction, and the signatures of both the seller and buyer. Unlike a title or registration, a bill of sale is not filed with the state — it stays with you as proof of the transaction.
The reason you need one is straightforward: it protects both parties. If a buyer later claims the car was never paid for, or a seller disputes who owns it, the bill of sale is your evidence. It also documents the condition of the vehicle at the time of sale, which matters if a dispute arises later about mechanical problems or damage.
Most states do not require a bill of sale by law, but many lenders, insurance companies, and title offices will ask for one anyway. Some states — including Alabama, Arkansas, Connecticut, Illinois, Kansas, Kentucky, Mississippi, Missouri, Ohio, South Carolina, and Virginia — do require it for the title transfer to be processed. Even if your state does not require one, creating one costs nothing and protects you.
Key Takeaways
- A bill of sale records the vehicle identification number (VIN), sale price, date, and signatures of both buyer and seller, and stays with you as proof of the transaction.
- Some states require a bill of sale before the title office will process a title transfer; others do not, but lenders and insurers often request one anyway.
- The bill of sale should note the vehicle's condition at the time of sale and whether any mechanical problems or damage are known to the seller.
- You can use a template from your state's motor vehicle department, a generic form, or write one yourself — the key is that both parties sign and date it.
- Keep the original signed bill of sale with your vehicle records; do not file it with the state, as it is not a government document.
What information goes on a bill of sale
A bill of sale must include the vehicle's full identification number (VIN), the make, model, year, and color. It should also list the odometer reading at the time of sale, the sale price in dollars, and the date of the transaction. Both the buyer and seller must print their names, sign the document, and include their addresses.
Many bills of sale also include a section for the seller to disclose known mechanical problems, accidents, or damage. This protects the buyer by documenting what was known at the time of sale and protects the seller by showing that the buyer accepted the vehicle in its current condition. Some forms ask whether the vehicle is being sold "as-is" or with any warranty.
If the vehicle has a lien (meaning a lender still owns part of it), the bill of sale should note the lender's name and the loan account number. This tells the buyer that the title cannot be transferred until the loan is paid off. If the seller is paying off the loan at closing, the bill of sale can note that the sale is contingent on the lien being released.
Where to find a bill of sale template
Your state's motor vehicle department website often provides a free bill of sale form. Search "[your state] bill of sale" or "[your state] motor vehicle department" to find the official template. Some states post it as a PDF you can print and fill out by hand; others provide a Word document you can type into.
If your state does not provide a form, you can use a generic template from a legal document site or a car-buying guide. The National Association of State Motor Vehicle Administrators (AAMVA) publishes a standard form that most states recognize. You can also find templates through the American Automobile Association (AAA) or through sites that specialize in legal forms.
If you prefer to write your own, the document does not need to be fancy. It must include the vehicle details, the sale price, the date, and the signatures of both parties. Handwritten bills of sale are legal in all states as long as both parties sign and date them.
How to fill out a bill of sale correctly
Start by entering the vehicle's VIN, which appears on the title, registration, or the driver's side of the dashboard. Write the make, model, year, and color exactly as they appear on the title. Enter the odometer reading and the sale price in words and numbers (for example, "One thousand five hundred dollars ($1,500.00") to prevent disputes about the amount.
Write the date the sale occurred, not the date you are filling out the form. Enter the seller's full legal name and current address, then the buyer's full legal name and current address. If there are multiple buyers or sellers, list all of them and have all of them sign.
In the condition section, the seller should note whether the vehicle runs, whether there are known mechanical issues, and whether there has been accident damage or flood damage. If the vehicle is being sold "as-is," write that clearly. Both parties should initial this section to show they agree on the vehicle's condition.
At the bottom, both the buyer and seller must sign and date the document. Use blue or black ink so the signature is clear if the form is photocopied. Do not use pencil. If either party cannot sign, some states allow a notary to witness the signature, but check your state's rules first.
Differences between a bill of sale and a title
A bill of sale and a title are two different documents with different purposes. The title is the official government record of ownership; it is issued by your state's motor vehicle department and lists the legal owner. The bill of sale is a private record between the buyer and seller that proves the transaction took place.
When you buy a used car, the seller gives you the bill of sale and the title. You then take both documents to your state's motor vehicle office to register the car in your name. The office updates the title to show you as the owner and issues you a new registration. The bill of sale stays with you; it is not filed with the state.
Some states require the bill of sale to be presented at the time of title transfer, but it is not kept by the motor vehicle department. It is your proof that you bought the car and what you paid for it. If the title is lost or damaged, the bill of sale can help you get a replacement, but it does not replace the title itself.
What to do with the bill of sale after the sale
Keep the original signed bill of sale with your vehicle records — in a file folder, a safe, or a digital scan. Do not send it to the state motor vehicle office unless they specifically ask for it. Some states request a copy when you explore for a title transfer, but most do not.
Make a photocopy or take a photo of the signed bill of sale before you hand over the keys. If you are the buyer, keep your copy in case questions arise about the purchase price, the vehicle's condition, or the date of sale. If you are the seller, keep your copy as proof that you transferred ownership and that the buyer accepted the vehicle in its stated condition.
If you are financing the vehicle, your lender may ask for a copy of the bill of sale. Your insurance company may also request one when you add the vehicle to your policy. Having the original signed document on hand makes these requests straightforward to fulfill.
Common mistakes to avoid when writing a bill of sale
Do not leave the VIN blank or write it incorrectly. The VIN is the vehicle's unique identifier, and mistakes here can cause problems when you try to register the car. Copy it directly from the title or the vehicle itself, character by character.
Do not leave the sale price blank or write "cash" without a dollar amount. The price matters for tax purposes, title transfer fees, and as proof of the transaction. Write the amount in both words and numbers to prevent disputes.
Do not skip the condition section or leave it vague. If the seller knows the transmission is slipping or the check engine light is on, write it down. If the buyer later discovers a major problem and claims the seller hid it, the bill of sale is your evidence of what was disclosed. Leaving this section blank puts both parties at risk.
Do not have only one party sign. Both the buyer and seller must sign and date the bill of sale. If only one person signs, it is not a valid record of the transaction. If there are multiple buyers or sellers, all of them should sign.
Frequently Asked Questions
Do I need a notary to sign a bill of sale?
Most states do not require a notary for a bill of sale to be valid. The signatures of both the buyer and seller are enough. However, some states or lenders may request a notarized copy for extra proof. Check your state's motor vehicle department website or ask your lender before you sign.
Can I use a bill of sale from another state?
Yes, a bill of sale from another state is generally recognized, but your state's motor vehicle office may prefer the official state form. Using your state's form ensures it includes all the information your state requires for a title transfer. If you use a form from another state, include all the same information and have both parties sign.
What if I lose the bill of sale after I buy the car?
If you lose the original, ask the seller for a copy or a replacement signed by both of you. If the seller will not cooperate, you can still register the vehicle with your title, but you will not have proof of the purchase price or the condition at the time of sale. Keep a scan or photo of important documents to prevent this problem.
Does the bill of sale need to match the price on the title?
The bill of sale and the title do not always show the same price. The bill of sale records what you actually paid; the title shows the assessed value used for registration and tax purposes. These can be different, and that is normal. Write the true sale price on the bill of sale.
Can I write a bill of sale on a piece of paper?
Yes, a handwritten bill of sale on plain paper is legal in all states as long as it includes the vehicle details, sale price, date, and signatures of both parties. A template or official form is clearer and more professional, but a handwritten document is valid if both parties sign and date it.