An automobile bill of sale is a written record that proves you bought or sold a vehicle and documents the price paid
A bill of sale is a legal document that transfers ownership of a car from one person to another. It lists the vehicle details, the sale price, the date of the transaction, and the signatures of both the buyer and seller. When you buy or sell a car—whether through a dealer, a private party, or at auction—a bill of sale creates a paper trail that protects both sides.
The bill of sale is not the same as a title or registration. The title is the official government document that proves legal ownership; the bill of sale is the receipt and evidence of the transaction that led to that ownership change. Many states require you to present the bill of sale to the Department of Motor Vehicles when you register the vehicle in your name or transfer the title.
Without a bill of sale, you have no documented proof of what you paid, when you bought the vehicle, or that the seller agreed to the sale. This matters if there is a dispute later—about the price, the condition of the car, or who actually owns it.
Key Takeaways
- A bill of sale documents the vehicle identification number, sale price, date, and signatures of both buyer and seller, and is required or strongly recommended by most states when registering a vehicle.
- The bill of sale is separate from the title; it is the receipt of the transaction, while the title is the government ownership document.
- Private-party sales require a bill of sale more often than dealer sales, because dealers typically handle the paperwork themselves.
- You should keep the bill of sale for as long as you own the vehicle, and provide a copy to your insurance company and to the DMV.
What information goes on a bill of sale
A bill of sale must include the vehicle identification number (VIN), 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 sign and print their names, and should include their addresses and phone numbers.
Some states have a specific form or template for bills of sale; others accept any written document that contains the required information. Check your state's Department of Motor Vehicles website to see whether your state provides an official form or has specific wording requirements. Many states post a sample bill of sale that you can read and fill in by hand or on a computer.
If the vehicle is being sold "as-is" with no warranty, or if there are known mechanical problems, it is common to note that on the bill of sale. This protects the seller from later claims that the car was misrepresented. Some buyers and sellers also note whether the sale includes any extras, such as a spare key, floor mats, or a car cover.
When you need a bill of sale
You need a bill of sale whenever you buy or sell a vehicle privately—that is, from one individual to another rather than through a licensed dealer. If you are buying from a dealer, the dealer will usually provide the paperwork and handle the title transfer, so a separate bill of sale is less critical, though it is still useful to have.
At auction, the auction house typically provides a bill of sale or a purchase receipt that serves the same purpose. When you register the vehicle with your state's DMV, you will usually be asked to provide the bill of sale along with the title process. Some states make it optional; others require it before they will process the registration.
If you are buying a used car from a private seller and they do not offer a bill of sale, you should create one yourself and ask them to sign it. It takes only a few minutes and protects you far more than a verbal agreement or a text message exchange.
How to create a bill of sale
Start by downloading your state's official bill of sale form from the DMV website, or use a blank template from a legal document site. Fill in the vehicle information from the title or registration: the VIN, make, model, year, and current odometer reading. Write in the sale price as a number and spell it out in words to avoid confusion.
Add the date of the sale, the full names and addresses of both buyer and seller, and leave space for signatures. Print two copies—one for the buyer and one for the seller. Meet in person or arrange a find way to exchange the signed document. Both parties should sign and date the form in front of each other if possible, or have the signatures notarized if either party is concerned about authenticity.
Keep your copy of the bill of sale in a safe place, along with your other vehicle records. When you register the car or transfer the title, bring the bill of sale with you or submit it with your DMV paperwork. If you sell the car later, you may need to refer back to it to confirm the purchase price or date of ownership.
State-by-state differences in bill of sale requirements
Every state accepts a bill of sale, but the specific requirements vary. Some states have an official form that the DMV provides; others accept any written document that includes the required information. A few states require the bill of sale to be notarized, meaning a notary public must witness the signatures and stamp the document.
Some states ask for the bill of sale when you explore for a title transfer; others do not require it but recommend it. A small number of states do not ask for it at all during registration, but you should still create one for your own protection. The best approach is to check your state's DMV website before you buy or sell a vehicle, so you know exactly what your state expects.
Even if your state does not require a bill of sale, your insurance company may ask for one when you insure the vehicle. Having a bill of sale on hand makes the insurance process faster and gives the insurer proof that you are the legal owner.
What happens if you don't have a bill of sale
If you buy a car without a bill of sale, you may still be able to register it if you have the title signed over to you by the seller. However, you will have no written proof of the sale price, the date, or the condition of the vehicle at the time of purchase. If a dispute arises—the seller claims you still owe money, or you claim the car had hidden damage—you have no document to support your side of the story.
Selling a car without a bill of sale also leaves you vulnerable. If the buyer does not register the vehicle and it is later involved in an accident or crime, you may still be listed as the owner on the title, even though you no longer own it. A bill of sale creates a dated record that you sold the vehicle and to whom, which protects you if legal questions come up later.
Some states will not process a title transfer without a bill of sale or some other proof of sale. If you are in that situation, you and the other party may need to go to the DMV together to sign an affidavit or complete a special form to prove the transaction took place.
Frequently Asked Questions
Does a bill of sale have to be notarized?
Most states do not require notarization, but a few do. Check your state's DMV website to see whether notarization is required where you live. Even if it is not required, having a notary witness the signatures adds an extra layer of proof that both parties signed willingly and that the document is authentic.
Can I use a text message or email instead of a written bill of sale?
A text message or email exchange is not a substitute for a formal bill of sale. The DMV will not accept it, and it does not provide the same legal protection. Always create a written document that both parties sign, even if you also communicate by text or email.
What if the seller will not sign a bill of sale?
If a private seller refuses to sign a bill of sale, that is a red flag. It suggests they may not actually own the vehicle, or they are trying to hide something about the sale. Do not proceed with the purchase until you have a signed bill of sale and can verify that the seller's name matches the name on the title.
Do I need a bill of sale if I buy from a car dealer?
Dealers typically provide their own paperwork and handle the title transfer, so a separate bill of sale is usually not required. However, keeping a copy of the dealer's invoice or purchase agreement serves the same purpose and is just as important to save.
How long should I keep the bill of sale?
Keep the bill of sale for as long as you own the vehicle. After you sell it, keep it for at least a few years in case questions arise about the sale or the vehicle's history. If you are selling the car, provide a copy of the bill of sale to the new owner so they have a complete record of ownership.