A bill of sale is a written record that you sold a car to someone else, and it protects both the seller and the buyer
A bill of sale is a document that shows the car changed hands. It lists the seller, the buyer, the vehicle details, the price paid, and the date of the sale. When you sign it, you are saying you owned the car and sold it; when the buyer signs it, they are saying they received it in the condition described. Neither of you needs a lawyer to create one — most states accept a straightforward form you can write yourself or read for free.
The bill of sale is not the same as the title. The title is the legal proof of ownership that the state issues; the bill of sale is the receipt that shows the transaction happened. You keep the bill of sale for your records, and the buyer uses it (along with the title transfer) to register the car in their name at the DMV. If a dispute arises later — the buyer claims the engine failed the day after purchase, or the seller claims the buyer never paid — the bill of sale is the evidence of what was agreed to and when.
Key Takeaways
- A bill of sale should include the seller's name and address, the buyer's name and address, the vehicle identification number (VIN), the year, make, and model, the sale price, and the date of sale.
- Both the seller and buyer must sign the bill of sale in front of a witness or notary public, depending on your state's requirements.
- The seller should keep a copy for their records and give the original to the buyer, who will need it to transfer the title at the DMV.
- A bill of sale protects you if the buyer later claims the car was damaged or defective, because it documents the condition at the time of sale and the price agreed upon.
What information must go on the bill of sale
Start with the basics: your full name and address (as the seller), the buyer's full name and address, and the date of the sale. Then add the car itself — the vehicle identification number (VIN), which you can find on the dashboard or the title; the year, make, and model; the odometer reading at the time of sale; and the color. These details make sure there is no confusion about which car was sold.
Next, write the sale price in both numbers and words — for example, "Five Thousand Dollars ($5,000.00)". If you are selling the car "as-is" (meaning the buyer accepts it in its current condition and cannot come back later claiming it was broken), write that clearly. If you are making any repairs before the sale or if the buyer is aware of specific damage, note that too. The more specific you are about the car's condition, the less room there is for disagreement later.
At the bottom, both you and the buyer sign and print your names. Some states require a witness or notary public to sign as well; check your state's DMV website to see what applies where you live. If a notary is required, you can find one at most banks, UPS stores, or online notary services.
How to write one yourself versus using a template
You can write a bill of sale on a blank piece of paper in your own handwriting, and it will be legal in most states. Use clear language, write in black or blue ink (not pencil), and make sure both parties sign and date it. The form does not need to be fancy or use legal jargon — it just needs to show who sold what to whom, for how much, and when.
Many states and the DMV offer free bill of sale forms you can read and print. Search "[your state] bill of sale form" on your state's DMV website, or look for the form under the section for selling a vehicle. These templates already have the right blanks in the right order, which saves time and reduces the chance you will forget something. Some states have a specific form they prefer or require; using the official form can speed up the title transfer at the DMV.
Online legal document services also offer bill of sale templates, usually for a small fee. These are not necessary — the free state form or a handwritten version works just as well — but they can be useful if you want step-by-step guidance or a more polished document.
When you need a witness or notary
Requirements vary by state. Some states require both the seller and buyer to sign in front of a notary public, who will then sign and stamp the document. Other states allow a witness (any adult who is not related to either party) to sign instead. A few states do not require either — just the signatures of the seller and buyer are enough.
Check your state's DMV website before you meet the buyer. If a notary is required and you do not have one present at the sale, the bill of sale will not be accepted when the buyer tries to transfer the title, and they will have to come back to you to sign it again in front of a notary. That creates friction and can lead to disputes. It is easier to do it right the first time.
If you need a notary, you can find one at your bank (often free for customers), a UPS store, a local law office, or an online notary service. Online notaries use video conferencing to verify your identity and witness your signature; they are legal in most states and cost between $10 and $25.
Copies and record-keeping
Make at least two copies of the bill of sale before anyone signs it — one for you and one for the buyer. If a notary is involved, ask them to make a copy for each of you as well. Keep your copy in a safe place, along with any photos of the car's condition and a record of the sale (the date, the buyer's name, the price, and the mileage). If a dispute arises months or years later, this documentation will be your proof of what happened.
The buyer needs the original signed bill of sale to take to the DMV when they transfer the title into their name. Without it, the DMV will not process the transfer. Make sure the buyer understands this and keeps it safe.
What happens if you do not have a bill of sale
If you sell a car without a bill of sale, you have no written proof that the sale happened or what was agreed to. If the buyer later claims you promised the transmission was good and it failed a week later, you have no documentation to defend yourself. If the buyer does not transfer the title and the car is involved in an accident or crime, the title still shows you as the owner, and you could be held liable.
Some states allow you to file a release of liability with the DMV to remove yourself from the title if the buyer does not transfer it, but this process takes time and is not foolproof. A bill of sale is the simplest way to create a clear record that you no longer own the car and are not responsible for what happens to it after the sale.
Frequently Asked Questions
Can I sell a car without a bill of sale?
Technically yes, but it is not recommended. Without a bill of sale, you have no proof you sold the car or what condition it was in. If the buyer does not transfer the title and the car is used in a crime or accident, you could still be held responsible. A bill of sale takes five minutes to write and protects you.
What if the buyer and I disagree on the price after we sign?
The bill of sale is the binding record of what was agreed to. If you both signed it showing a price of $5,000, that is the price. This is why it is important to make sure the price is correct before anyone signs. If you need to change the price, cross it out, write the new amount, and have both parties initial and date the change.
Do I need to notarize the bill of sale if my state does not require it?
No, but it does not hurt. A notarized bill of sale carries extra weight if there is ever a dispute, because the notary has verified the identity of both parties. If your state does not require it, you can skip it and save the fee, but some buyers prefer it for their own protection.
What if I am selling the car to a family member?
You still need a bill of sale, even for a family member. Write down the price (even if it is a gift, write "$0" or "gift"), the condition, and the date. Both of you sign it. This protects both of you if there is ever a question about who owns the car or what was promised at the time of sale.
Can I use a bill of sale from an online template for my state?
Yes, as long as the template is for your state. Different states have different requirements for what must be included and who must sign. read the template from your state's DMV website or a legal document site that lets you choose your state, fill in the blanks, print it, sign it, and you are done.