A bill of sale is a written record that you and the seller sign to prove who owned the car and who owns it now
A bill of sale is a document that shows a car has changed hands. It lists the seller, the buyer, the vehicle details (make, model, year, VIN), the sale price, and the date of the transaction. Both the seller and buyer sign it. The bill of sale is your proof that you bought the car and that the seller no longer has a claim to it. It is not the same as a title or registration — those are issued by your state's motor vehicle department — but a bill of sale often becomes part of the paperwork you submit when you transfer the title into your name.
Most states do not legally require a bill of sale, but many do require one for the title transfer process. Even in states where it is optional, creating one protects both you and the seller. If a dispute arises later — about the price paid, the condition of the car, or who owned it on a specific date — the bill of sale is your evidence. Without one, you have only your word against the seller's.
Key Takeaways
- A bill of sale documents the sale of a car and is signed by both the seller and buyer as proof of the transaction.
- Many states require a bill of sale as part of the title transfer process, even if they do not require it as a standalone document.
- The bill of sale should include the VIN, sale price, date, and signatures of both parties, and you should keep a copy for your records.
- You can use a template from your state's motor vehicle department, a generic template, or create your own as long as it contains the essential information.
What information goes on a bill of sale
A bill of sale should include the seller's full name and address, the buyer's full name and address, the vehicle identification number (VIN), the make and model of the car, the year, the odometer reading, the sale price, and the date of the sale. Some states also ask for the title number or license plate number. Both the seller and buyer must sign and print their names. If either party is a business or dealership, the authorized representative signs on behalf of that entity.
The sale price is important to include even if money did not change hands — for example, if you received the car as a gift, you would write "gift" or "$0" in the price field. This prevents confusion about whether the transaction was legitimate. Some states use the sale price to calculate sales tax, so accuracy matters for your tax paperwork later.
Where to find a bill of sale template
Your state's motor vehicle department website usually offers a bill of sale template you can read and print. Search "[your state] bill of sale" or "[your state] DMV bill of sale" to find it. If your state does not provide one, you can use a generic template from a legal document site or create a straightforward one yourself. The template does not have to be fancy — it just needs to contain all the required information and be signed by both parties.
Some states have specific wording or formatting requirements, so using your state's official template is the safest choice. If you buy from a dealership, the dealer usually provides the bill of sale as part of the sale paperwork. If you buy from a private seller, you are responsible for creating the document or asking the seller to create one.
When you need to sign a bill of sale
You sign a bill of sale at the moment of purchase, before money and keys change hands. Both you and the seller should sign the same document — do not sign separate copies. After signing, make two copies: one for you and one for the seller. Keep your copy with your car documents. You will need it when you go to your state's motor vehicle department to transfer the title into your name.
The timing matters because the bill of sale date is the official date of ownership transfer. If something happens to the car between the time you pay for it and the time you sign the bill of sale, the date on the document determines who is legally responsible. This is why you should sign it as part of the same transaction, not days or weeks later.
How a bill of sale connects to title transfer
After you buy the car, you take the bill of sale to your state's motor vehicle department along with the seller's title certificate and any other required documents. The department uses the bill of sale to verify the sale and to issue a new title in your name. The bill of sale itself does not transfer ownership — the title does — but the bill of sale is the proof that the sale happened and that you have the right to request a title transfer.
Some states ask you to submit the original bill of sale with your title transfer paperwork. Others only ask for a copy. Check your state's motor vehicle department website to see what they require. The bill of sale and the title are two separate documents with two separate purposes, but they work together in the ownership transfer process.
What to do if you lose your bill of sale
If you signed a bill of sale but lost your copy, contact the seller and ask them to provide another signed copy or to sign a duplicate. If the seller is unreachable or refuses, you may still be able to transfer the title, but the process will be slower. Your state's motor vehicle department can tell you what to do. Some states allow you to submit an affidavit (a sworn statement) in place of a bill of sale if you can explain why you do not have one.
If you never created a bill of sale at the time of purchase, you cannot go back and create one retroactively — both parties would have to sign a new document, and it would be dated after the actual sale. This is why it is important to create the bill of sale before you leave the seller's location.
Private sale versus dealership bill of sale
When you buy from a private seller, you create the bill of sale together or the seller provides one. When you buy from a dealership, the dealer creates the bill of sale as part of the sales contract. Dealership bill of sale documents are usually more detailed and include warranties, financing terms, and other conditions of the sale. A private sale bill of sale is simpler — it just documents the basic transaction.
In both cases, the bill of sale serves the same purpose: it proves the sale happened and documents the details. The main difference is that a dealership bill of sale is often combined with other paperwork, while a private sale bill of sale stands alone. Make sure you understand what you are signing in either case, and keep a copy for your records.
Frequently Asked Questions
Do I need a bill of sale if I buy from a dealership?
Yes. Dealerships provide a bill of sale as part of the purchase paperwork. You will need it to transfer the title into your name at your state's motor vehicle department. Keep a copy with your car documents.
What if the seller and I disagree on the sale price?
Agree on the price before you sign the bill of sale. Once both of you sign, the price on the document is the official record of what was paid. If you need to change it, both parties must sign a new bill of sale or an amendment. Do not cross out and initial the original — create a new document.
Can I use a bill of sale from the internet instead of my state's template?
Yes, as long as it includes all the required information: seller name and address, buyer name and address, VIN, vehicle details, sale price, date, and signatures from both parties. Using your state's official template is safest because it meets your state's specific requirements, but a generic template usually works.
Is a bill of sale the same as a title?
No. A bill of sale proves the sale happened. A title is the legal ownership document issued by your state. You need both: the bill of sale to show the sale occurred, and the title to show you are the legal owner. The motor vehicle department uses the bill of sale to issue a new title in your name.
What happens if I do not sign a bill of sale?
You can still transfer the title, but you lose your written proof of the sale. If a dispute arises later, you have no documentation to support your claim that you bought the car. Your state's motor vehicle department may also require a bill of sale as part of the title transfer process, so you may not be able to complete the transfer without one.