A bill of sale is the document that proves you bought or sold a car, and it protects both the buyer and seller if something goes wrong later

An automobile bill of sale is a written record of a vehicle transaction between a private seller and buyer. It documents what was sold, who sold it, who bought it, the price paid, and the date of the sale. The document becomes your proof of ownership until you transfer the title at the DMV, and it protects you if the seller later claims they never received payment or if the buyer claims they paid less than they actually did.

Most states do not require a bill of sale by law, but many DMVs will ask for one when you register the vehicle in your name. Some states — including Georgia, Illinois, and Missouri — do require it. Even when it is not legally required, creating one takes fifteen minutes and prevents disputes that could cost you thousands of dollars or land you in small claims court.

Key Takeaways

  • A bill of sale must include the vehicle identification number (VIN), the sale price, the date of sale, and the signatures of both the buyer and seller.
  • You can use a template from your state's DMV website, a generic template, or write one yourself — the format matters far less than having all required information in writing.
  • Both the buyer and seller should keep a signed copy; the buyer will need it when registering the vehicle and may need it for insurance.
  • A bill of sale does not transfer the title — you still need to complete the title transfer at your state's DMV after the sale.
  • Some states require notarization; check your state DMV website to see if yours does before you sign.

What information must go on the bill of sale

The bill of sale needs enough detail that someone reading it months or years later could understand exactly what was sold and prove the transaction happened. Start with the vehicle itself: the year, make, model, color, and most importantly the VIN (vehicle identification number), which is a 17-character code found on the dashboard, driver's side door jamb, or insurance card. The VIN is what ties the document to the actual car, so without it the bill of sale is nearly useless.

Next, fill in the sale price — the actual amount paid, not what the seller was asking. Write out the number in both digits and words (for example, "$8,500" and "Eight thousand five hundred dollars") to prevent someone from later claiming a different amount was agreed to. Include the date of the sale and the odometer reading, which most states require and which protects the buyer from unknowingly purchasing a vehicle with rolled-back mileage.

Then add the names and addresses of both the buyer and seller, exactly as they appear on their driver's licenses. Include the seller's signature and printed name, and the buyer's signature and printed name. Some states require the signatures to be notarized; others do not. Check your state DMV website to see whether notarization is required where you live.

Where to find a bill of sale template

Your state's DMV website usually has an official bill of sale form you can read and print. Search "[your state] DMV bill of sale" and look for a PDF or Word document. If your state does not provide one, you can use a generic template from a legal document site or write one yourself on plain paper — the format does not matter as long as all the required information is there and both parties sign it.

Some states have specific language or fields they prefer. For example, some ask you to declare whether the vehicle has a lien (money still owed to a bank or lender) on it. If your state's template includes a field for this, fill it in honestly. If the seller is still paying off a loan, the lender's name and the amount owed should be listed, because the buyer needs to know they may not receive a clear title until that loan is paid off.

How to fill in an example bill of sale

Here is what a completed bill of sale looks like in practice. Imagine you are buying a 2015 Honda Civic from Sarah Martinez on March 15, 2024, for $12,000. The VIN is 2HGCV52F47H123456, the odometer reads 87,400 miles, and Sarah lives at 742 Oak Street, Springfield, IL 62701. You live at 1205 Maple Avenue, Springfield, IL 62702.

At the top of the form, you would write the date: 03/15/2024. In the vehicle section, you would enter: Year 2015, Make Honda, Model Civic, Color Silver, VIN 2HGCV52F47H123456, Odometer 87,400 miles. In the price section, you would write $12,000 and "Twelve thousand dollars". Under seller information, you would write Sarah Martinez's name and address. Under buyer information, you would write your name and address. Both of you would sign and print your names at the bottom. Sarah would keep one copy, and you would keep one copy.

What happens after you sign the bill of sale

The bill of sale is not the end of the process — it is the beginning. After both parties sign, the buyer should take the signed bill of sale, the seller's title (the official ownership document), and any other documents the state requires to the DMV to register the vehicle in their name. This is called a title transfer, and it is what actually makes you the legal owner in the state's records.

The seller should keep their copy of the bill of sale as proof they no longer own the vehicle, in case the car is involved in an accident or crime after the sale. The buyer should keep their copy until the title transfer is complete and they receive the new title in the mail. After that, the bill of sale can be filed away but should be kept for at least three to five years in case a dispute arises.

When notarization is required

Some states require a notary public to witness both signatures and stamp the bill of sale. This adds a layer of verification that both parties actually signed the document and that they are who they claim to be. If your state requires notarization, both the buyer and seller must go to a notary together, bring their driver's licenses, and sign in front of the notary. The notary will then stamp and sign the document.

Notarization usually costs between $5 and $15 per signature. You can find notaries at banks, UPS stores, law offices, or by searching "notary public near me" online. If notarization is required in your state and you skip it, the DMV may reject your title transfer process and you will have to go back and get it notarized before trying again, which delays your registration.

Common mistakes to avoid on a bill of sale

The most common mistake is leaving the VIN blank or writing it incorrectly. The VIN is what ties the bill of sale to the actual vehicle, so if it is wrong or missing, the document proves almost nothing. Double-check the VIN against the title, the dashboard, or the insurance card before you write it down.

Another mistake is not having both parties sign. A bill of sale signed by only the seller or only the buyer is incomplete and may not be accepted by the DMV. Both signatures must be present, and both should be original signatures — photocopies or digital signatures may not be accepted depending on your state.

A third mistake is writing in the asking price instead of the actual sale price. If the seller was asking $15,000 but you negotiated down to $12,000, write $12,000. The bill of sale documents what actually happened, not what was advertised. If there is a dispute later about how much was paid, the bill of sale is the proof.

Frequently Asked Questions

Do I need a bill of sale if I am buying from a dealer instead of a private seller?

No. Dealers provide their own sales contract and paperwork, which serves the same purpose. A bill of sale is for private sales between individuals. If you are buying from a dealership, they will handle the paperwork and title transfer for you.

What if the seller will not sign the bill of sale?

Do not complete the sale. A seller who refuses to sign a bill of sale is a red flag that they may not actually own the vehicle, that there is a lien on it they have not disclosed, or that they plan to dispute the sale later. Walk away from the transaction.

Can I use a bill of sale I found online, or do I have to use my state's form?

You can use any bill of sale as long as it includes all the required information: VIN, sale price, date, odometer reading, buyer and seller names and addresses, and both signatures. Your state's form is safest because it includes everything your DMV expects, but a generic template or one you write yourself will work if it has all the same information.

What if I lose my copy of the bill of sale after I have already transferred the title?

If the title has already been transferred and is in your name, you do not need the bill of sale anymore. It was proof of the transaction; once the title is registered in your name, the state's records are your proof of ownership. Keep it anyway if you can, but losing it after the title transfer is not a crisis.

Does a bill of sale protect me if the car breaks down right after I buy it?

No. A bill of sale proves the sale happened; it does not may provide the condition of the vehicle or protect you from mechanical problems. That is why you should have a mechanic inspect any used car before you buy it. Once you sign the bill of sale, you own the car as-is unless you and the seller agreed in writing to specific repairs or a warranty.