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
When you buy a car from a private person, a bill of sale is the document that shows the transfer happened. It lists the vehicle details, the price paid, the date, and signatures from both you and the seller. Unlike a title (which the state issues), a bill of sale is something you and the seller create together — it's your proof that the transaction occurred and that you now own the car.
You need a bill of sale because it protects you if something goes wrong later. If the seller claims they still own the car, or if the car has unpaid loans or liens against it, the bill of sale is your evidence that you bought it in good faith. It also protects the seller by showing they no longer own the vehicle and are not responsible for what happens to it after the sale.
A bill of sale is not the same as a title. The title is the legal ownership document issued by your state's Department of Motor Vehicles (or equivalent). The bill of sale is the transaction record you create during the purchase. You will need both — the bill of sale to prove the sale happened, and the title transfer to make the ownership change official with the state.
Key Takeaways
- A bill of sale is a written agreement between buyer and seller that documents the car purchase, including the vehicle identification number, price, and date.
- You create the bill of sale yourself — it is not issued by the government, and there is no single official form, though your state may provide a template.
- Both the buyer and seller must sign the bill of sale, and it should be signed before or at the moment money changes hands.
- A bill of sale protects you by proving you purchased the car in good faith and protects the seller by showing they no longer own it.
- The bill of sale is separate from the title transfer — you need both to complete a private car purchase.
What information goes on a bill of sale
A bill of sale should include the vehicle identification number (VIN), which you can find on the dashboard or in the owner's manual. It should also list the make, model, year, and color of the car. Include the odometer reading at the time of sale — this is important because it creates a record of the car's mileage history.
Write down the full names and addresses of both the buyer and seller. Include the sale price and the date of the sale. If the car is being sold "as-is" (meaning the buyer accepts it in its current condition), state that clearly. If there are any known problems with the car, list them — this protects both parties by showing the buyer knew about the issues before purchasing.
Both the buyer and the seller must sign and date the bill of sale. Some people have it notarized (signed in front of a notary public), though this is not required in most states. A notarized bill of sale adds an extra layer of proof, but it costs money and takes extra time. Check your state's requirements — a few states do require notarization for private car sales.
Where to get a bill of sale form
You do not have to use an official form. You can write a bill of sale on a blank piece of paper as long as it includes all the required information and both parties sign it. However, using a template makes the process simpler and ensures you do not forget anything.
Your state's Department of Motor Vehicles website often provides a free bill of sale template. Search "[your state] bill of sale form" to find it. Many states post their templates as PDFs you can read and print. If your state does not provide one, you can find templates from legal document websites or use a straightforward format you create yourself.
Some title companies and car dealerships also provide bill of sale forms. If you are buying from a dealership, they will usually handle the bill of sale for you. For a private sale, you are responsible for creating it, though the seller may have a form they prefer to use.
When to sign the bill of sale
Sign the bill of sale at the same time you hand over the money and receive the keys. This timing is important because it creates a clear record that the sale happened on that specific date. If you sign before paying, there is a gap where the seller could claim the sale never occurred. If you sign after taking the car, the same problem exists from your side.
Make sure both you and the seller have a copy of the signed bill of sale. Keep your copy in a safe place — you will need it when you go to the DMV to transfer the title into your name. The seller should keep their copy as proof they no longer own the vehicle.
How a bill of sale connects to the title transfer
After you buy the car, you must take the bill of sale to your state's Department of Motor Vehicles to transfer the title. The DMV will use the bill of sale as proof that the sale occurred. You will also need the original title signed by the seller, your driver's license, and proof of insurance.
The title transfer process varies by state. Some states allow you to mail in the documents; others require you to visit in person. Some charge a flat fee; others charge based on the car's value. Contact your local DMV or check their website to learn the exact steps and fees for your state.
The bill of sale does not transfer ownership by itself — only the title transfer does that. The bill of sale is the evidence that the transaction happened. Without it, the DMV will not process the title transfer, and you will not be the legal owner in the state's records.
What to do if the seller will not sign the bill of sale
If the seller refuses to sign a bill of sale, do not buy the car. A seller who will not document the sale in writing is a major red flag. They may be hiding something — unpaid loans, liens, accident history, or stolen title status. Without a signed bill of sale, you have no proof you own the car, and the DMV will not transfer the title to you.
A legitimate seller has no reason to refuse. The bill of sale protects them as much as it protects you. If someone will not sign one, walk away from the deal. There are other cars for sale.
Common mistakes to avoid
Do not leave the price blank or write "cash" without a number. The actual sale price matters for tax purposes and for the DMV's records. Write out the full amount in numbers and words if possible.
Do not skip the VIN or odometer reading. These details are what make the bill of sale specific to this car and this transaction. Without them, the document is too vague to be useful as proof.
Do not sign the bill of sale before you inspect the car and test drive it. Once you sign, you are saying you accepted the car in the condition it was in at that moment. If you discover a major problem after signing, the seller can point to your signature as proof you knew about it.
Do not lose your copy. Store it with your car's insurance documents and registration. You will need it if you ever sell the car, if you have a dispute with the seller, or if the title transfer gets delayed.
Frequently Asked Questions
Do I need a notarized bill of sale?
Most states do not require notarization for a private car sale bill of sale. However, a few states do, and some lenders or title companies may ask for it. Check your state's DMV website or call them to confirm. If notarization is required, you will need to visit a notary public with both the buyer and seller present, which adds time and cost.
What if I buy a car from a dealership instead of a private seller?
Dealerships handle the bill of sale and title transfer for you as part of the sale. They provide the paperwork, and you sign it at the dealership. You do not need to create your own bill of sale when buying from a dealer — they have their own forms that meet state requirements.
Can I use a bill of sale if the seller's name is not on the title?
No. The person selling you the car must be the person listed on the title. If someone else's name is on the title, that person must sign the title transfer, not just the bill of sale. If the seller cannot produce a title in their name, do not complete the purchase.
What happens if I lose the bill of sale after I buy the car?
If you lose it before you transfer the title, contact the seller and ask for another signed copy. If you lose it after the title is transferred, it is less critical because the DMV's records show you own the car. However, keep it anyway — you may need it if you sell the car later or if a dispute arises about when you purchased it.
Is a bill of sale the same as a purchase agreement?
A purchase agreement is a longer contract that may include terms like warranty, financing details, or conditions of the sale. A bill of sale is simpler — it just documents that the sale happened. For a private car sale, a bill of sale is usually enough. For more complex transactions, you might use both.