A bill of sale is a written record that you and the buyer (or seller) sign to prove who owns a car and when the ownership changed hands

A bill of sale does not transfer the title itself — that happens at the DMV or your state's equivalent — but it creates a paper trail showing the sale happened, what was paid, and who agreed to it. You need one whether you are buying or selling a used car from a private person. If you are trading in a car at a dealership, the dealer handles this document; if you are buying or selling between individuals, you create it yourself.

The bill of sale protects both of you. For the seller, it proves you received payment and are no longer responsible for the car. For the buyer, it proves you paid for the car and have the right to register it in your name. Without one, disputes over who owns the car or who paid what can become difficult to settle.

Key Takeaways

  • A bill of sale must include the names and addresses of both the buyer and seller, the vehicle identification number (VIN), the sale price, and the date of the sale.
  • Both the buyer and seller must sign the bill of sale in front of a witness or notary public, depending on your state's rules.
  • You can use a template from your state's DMV website, a generic template from a legal document site, or create one yourself as long as it contains all required information.
  • The buyer needs a copy to register the car at the DMV; the seller should keep a copy for their records.

What information must appear on the bill of sale

Start with the basics about the people involved. Write the full legal name, current address, and phone number of the seller. Do the same for the buyer. Use the names exactly as they appear on driver's licenses — if a name is spelled differently on the title, the DMV will flag it later.

Next, describe the vehicle. Include the year, make, model, and color. Write the vehicle identification number (VIN) — a 17-character code stamped on the dashboard or door jamb, visible through the windshield. Include the odometer reading at the time of sale. Add the license plate number if the car currently has one.

State the sale price in both numbers and words — for example, "$5,000 (five thousand dollars)". This prevents someone from later claiming a different amount was agreed to. Note whether any trade-in occurred or whether the buyer is assuming an existing loan. If the car is being sold "as-is" with no warranty, write that clearly.

Write the date the sale occurred. This is the date both parties sign, not a future date. Some states require the sale date to fall within a certain number of days before the buyer registers the car at the DMV, so check your state's rules.

A basic bill of sale template

You do not need to hire a lawyer to create a bill of sale. Here is what a straightforward one looks like:

BILL OF SALE This bill of sale is entered into on [DATE], between [SELLER NAME], address [SELLER ADDRESS], phone [SELLER PHONE] (the "Seller"), and [BUYER NAME], address [BUYER ADDRESS], phone [BUYER PHONE] (the "Buyer"). The Seller agrees to sell, and the Buyer agrees to purchase, the following vehicle: Year: [YEAR] Make: [MAKE] Model: [MODEL] Color: [COLOR] VIN: [VIN] License Plate: [PLATE NUMBER] Odometer Reading: [MILES] The Buyer agrees to pay the Seller the sum of $[AMOUNT] ([AMOUNT IN WORDS]) as full payment for the vehicle. The vehicle is sold in "as-is" condition with no warranty. The Seller certifies that the vehicle is free of all liens and that the Seller has the right to sell it. Seller Signature: _________________________ Date: _________ Buyer Signature: _________________________ Date: _________ Witness Signature: _________________________ Date: _________

Fill in the bracketed sections with the actual information. Print it, sign it, have a witness sign it, and make copies for both parties. Some states require a notary public to witness the signatures instead of a regular witness — check your state's DMV website to confirm.

Where to find a state-specific template

Many states provide their own bill of sale form on the DMV website. Search "[your state] DMV bill of sale" to find it. Using your state's official form is the safest option because it includes everything your state requires and nothing it does not.

If your state does not provide a form, you can read a generic template from legal document websites. Make sure the template you choose is labeled for your state, because requirements vary. Some states require notarization; others do not. Some require specific language about liens or odometer readings.

Whether you use a state form or a generic template, read through the entire document before printing. Make sure every blank is filled in completely and legibly. Blank spaces or unclear handwriting can cause the DMV to reject the document when the buyer tries to register the car.

Who signs and when

Both the seller and the buyer must sign the bill of sale. The signature proves each person agreed to the terms. Sign in blue or black ink — do not use pencil, which can be erased.

In most states, a witness must also sign. The witness can be anyone who is not related to either party and who is present when both parties sign. Some states require the witness to be a notary public instead. A notary public is an official authorized by the state to witness signatures; you can find notaries at banks, UPS stores, law offices, and some libraries.

Sign the bill of sale on the same day the money changes hands and the keys are handed over. Do not sign it before the sale is complete or after. The date on the bill of sale should match the date everyone signs it.

What happens after you sign

Make at least three copies: one for the seller, one for the buyer, and one to keep in a safe place. The buyer will need their copy when they go to the DMV to register the car in their name. The seller should keep their copy as proof of sale in case questions arise later.

The buyer typically takes the bill of sale to the DMV within a set number of days — usually 10 to 30 days, depending on your state. The buyer will also bring the title (signed over by the seller), proof of insurance, and a completed registration process. The DMV will issue a new title in the buyer's name.

The seller should not sign over the title until the bill of sale is signed and the money has been received. Once the title is signed, the seller has given up legal ownership of the car. If the buyer does not register it or if a problem arises, the seller's copy of the bill of sale is the only proof that the sale happened.

Common mistakes to avoid

Do not leave blanks on the bill of sale. Write "N/A" or draw a line through any section that does not explore. A blank space can be filled in later by someone else, which defeats the purpose of having a written agreement.

Do not use a bill of sale from a different state. State requirements differ, and using the wrong form can delay or prevent the buyer from registering the car. If you are selling a car across state lines, use the form from the state where the buyer will register it.

Do not sign the title before the bill of sale is signed and the money is received. The title is what transfers ownership; the bill of sale is just the record. If you sign the title first and the buyer changes their mind, you have already given up your legal claim to the car.

Do not accept a personal check or promise of payment. Wait until the money is in your account or you have cash in hand before signing anything. Once you sign the bill of sale and the title, you have no legal recourse if the check bounces.

Frequently Asked Questions

Do I need a bill of sale if I am selling a car to a family member?

Yes. Even between family members, a bill of sale protects both parties. It proves the car was sold, not gifted, which matters for insurance, registration, and tax purposes. If you are gifting the car instead of selling it, you may need a different form — check your state's DMV website.

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

Do not buy the car. A seller who refuses to sign a bill of sale is a red flag. They may be hiding a lien, an accident history, or the fact that they do not actually own the car. Walk away from the deal.

Can I use a bill of sale from an online template without a notary?

It depends on your state. Some states require notarization; others do not. Check your state's DMV website or call the DMV to confirm. If your state does not require a notary, a witness signature is usually enough. If it does require one and you skip it, the buyer may not be able to register the car.

What if I lost my copy of the bill of sale after the sale?

Ask the other party for a copy. If you cannot reach them, contact your state's DMV — they may have a record of the registration transfer. For future sales, keep your copy in a safe place like a filing cabinet or safe deposit box.

Does the bill of sale need to be notarized if I am buying from a dealer?

No. Dealers provide their own paperwork and handle the bill of sale themselves. You only create and sign a bill of sale when buying or selling between private individuals.