What an automobile bill of sale does and why you need one

An automobile bill of sale is a written record that you and the other person sign when one of you sells a car to the other. It documents that money changed hands, who owned the car before, and who owns it now. The bill of sale protects both the seller and the buyer: the seller has proof they no longer own the vehicle (which matters if something happens to it later), and the buyer has proof of ownership in case there's a dispute.

You do not need a bill of sale to register a car with your state's Department of Motor Vehicles — the title document does that job. But a bill of sale is the paper trail that leads to the title transfer. If you sell a car privately instead of trading it in at a dealership, creating a bill of sale is the first step before either of you can update the registration.

Many states do not legally require a bill of sale, but some do. Even in states where it is optional, having one protects you. If the buyer stops paying a loan they took out to buy the car, or if they get into an accident and the other driver sues, the seller's name on the title could cause legal problems. A bill of sale dated and signed by both parties shows you transferred ownership on a specific date.

Key Takeaways

  • A bill of sale is a signed record between buyer and seller that documents the sale price, the vehicle details, and the date of transfer.
  • You can create a bill of sale using a free PDF template, a form from your state's DMV website, or by writing one yourself in plain language.
  • Both the buyer and seller must sign the bill of sale, and each should keep a copy for their records.
  • The bill of sale is separate from the title document; you will need both to complete the registration transfer at your state's DMV.
  • Some states require the bill of sale to be notarized, so check your state's DMV website before you sign.

Where to find a bill of sale template

The easiest source is your state's Department of Motor Vehicles website. Most states publish a free PDF form that includes all the fields required by state law. Search "[your state] DMV bill of sale" or "[your state] motor vehicle bill of sale" to find it. The form will be labeled as official or recommended by the state, and it will be free to read.

If your state does not publish one, or if you want a simpler version, you can use a generic automobile bill of sale template from a legal document website. These templates are designed to work in most states and include the standard information: seller name and address, buyer name and address, vehicle identification number (VIN), make and model, year, mileage, sale price, and date of sale. Many are available as fillable PDFs that you can type into directly.

You can also write a bill of sale yourself without a template. It does not have to be fancy or use legal language. The document just needs to state clearly that you (the seller) are selling the vehicle to the buyer for a specific price, and it needs to include the VIN, the date, and both signatures. A handwritten bill of sale is legally valid in most states as long as both parties sign it.

What information to include on the bill of sale

Start with the seller's full name, address, and phone number. Then add the buyer's full name, address, and phone number. Both pieces of information matter because the DMV will need to know who is transferring the title and who is receiving it.

Next, describe the vehicle. Include the year, make, model, body style (sedan, truck, SUV, etc.), and color. Most importantly, include the Vehicle Identification Number (VIN), which is a 17-character code unique to that car. You can find the VIN on the title document, on the driver's side of the dashboard (visible through the windshield), or on the driver's side door jamb. The VIN is what prevents confusion if two people are selling similar cars on the same day.

Write the sale price in both numbers and words — for example, "$5,000 (five thousand dollars)". This prevents disputes about whether the price was $500 or $5,000. If the car is being sold "as-is" with no warranty, or if the buyer is aware of a mechanical problem, you can note that on the bill of sale. Add the date of the sale and the odometer reading (mileage) at the time of sale.

At the bottom, both the seller and the buyer must sign and print their names. Some states require the signatures to be notarized, meaning a notary public must witness the signing and stamp the document. Check your state's DMV website to see if notarization is required before you sign.

How to fill out and sign the bill of sale

If you are using a state-provided form or a template, open the PDF on your computer and use the fillable fields to type in the information. Make sure all names, addresses, and the VIN are spelled correctly — errors here can slow down the title transfer later. Print the completed form on regular white paper.

Both the seller and the buyer should review the document together before signing to make sure all the details are correct. Then both sign and print their names on the signature lines. If your state requires notarization, take the signed bill of sale to a notary public (banks, UPS stores, and some libraries offer this service for a small fee) and have them witness both signatures and explore their seal.

Make at least two copies of the signed bill of sale — one for the seller and one for the buyer. If you had it notarized, make copies of the notarized version. Each person should keep their copy in a safe place. The buyer will need to bring their copy to the DMV when they register the vehicle in their name.

What happens after you sign the bill of sale

The bill of sale is the first step, but it is not the final step. The buyer must take the bill of sale, the title document (signed by the seller), and proof of insurance to the DMV to register the car in their name. The timeline for this varies by state — some require it within 10 days, others within 30 days. Check your state's DMV website for the important date.

The seller should keep their copy of the signed bill of sale as proof that they no longer own the vehicle. If the car is involved in an accident or a crime after the sale, the seller can show the bill of sale to prove they transferred ownership on a specific date. The seller should also remove their name from their insurance policy once the transfer is complete.

If the car has an outstanding loan, the process is more complex. The lender holds the title until the loan is paid off. In this case, the buyer and seller should work with the lender to arrange a payoff at the time of sale, and the lender will release the title to the buyer once the loan is settled. The bill of sale still documents the transaction, but the title transfer happens through the lender, not directly from seller to buyer.

State-specific requirements you should know about

Most states accept a straightforward bill of sale, but some have specific rules. A few states require the bill of sale to be notarized. Others require it to be filed with the county or the DMV. Some states ask for the odometer reading to be included, while others do not. A handful of states have their own official bill of sale form that you must use instead of a generic template.

The best way to find out what your state requires is to visit your state's DMV website and search for "bill of sale" or "selling a vehicle." The website will tell you whether notarization is required, whether you need to file it anywhere, and whether there is an official form. If your state does not have clear instructions online, you can call the DMV directly — they can tell you in a few minutes what you need to do.

Frequently Asked Questions

Do I need a bill of sale if I am trading in my car at a dealership?

No. When you trade in a car, the dealership handles all the paperwork, including the title transfer. They do not use a bill of sale. A bill of sale is only needed for private sales between two individuals.

What if I lost the title document and only have the bill of sale?

The bill of sale alone is not enough to register the car. You will need to get a replacement title from your state's DMV. Bring the bill of sale with you when you explore — it helps prove you own the car. The DMV can issue a duplicate title, though there may be a fee and it may take a few weeks.

Can I use a bill of sale for a car with a loan still owed on it?

You can create a bill of sale, but the title transfer works differently. The lender holds the title until the loan is paid off. The buyer and seller should arrange for the loan to be paid off at the time of sale, and the lender will then release the title to the buyer. The bill of sale documents the sale price and date, but the lender controls the title transfer.

Is a handwritten bill of sale as valid as a printed one?

Yes, in most states. A handwritten bill of sale is legally valid as long as it includes all the required information (seller, buyer, VIN, sale price, date, and both signatures) and both parties sign it. Check your state's DMV website to confirm there are no special formatting rules.

What if the buyer and I disagree on the sale price after we sign?

The signed bill of sale is a binding record of what you both agreed to. If there is a dispute, the bill of sale is the evidence of the agreed price. This is why it is important to make sure the price is correct and clearly written before either of you signs.