A bill of sale is a written record that you and the other party sign to prove who owned a vehicle and who owns it now
When you buy or sell a car, truck, or motorcycle, a bill of sale is the document that shows the transfer happened. It lists the vehicle details, the price paid, and the signatures of both the seller and buyer. The bill of sale is not the title itself — that is a separate document issued by your state's motor vehicle department — but it is the proof that a sale took place, and it protects both of you if questions come up later.
You need a bill of sale whether you are buying from a private person, a family member, or a dealer. Even if no money changes hands — for example, if you inherit a vehicle or receive one as a gift — many states require a bill of sale to transfer ownership on the title. Without one, the person who sold or gave you the vehicle could later claim they still own it, or a lender could come after you for a debt attached to the vehicle.
Key Takeaways
- A bill of sale is a signed record between buyer and seller that proves a vehicle changed hands and shows the price paid.
- Your state's motor vehicle department does not issue the bill of sale; you and the other party create it, though some states provide a standard form.
- You will need the bill of sale when you register the vehicle in your name or transfer the title to a new owner.
- The bill of sale protects you by showing you bought the vehicle in good faith and by when, which matters if the seller had unpaid loans or traffic violations attached to it.
- Keeping a copy for your records is important even after the sale is complete, in case a dispute arises years later.
What information goes on a bill of sale
A bill of sale includes the vehicle identification number (VIN), make, model, year, and color. It also shows the sale price, the date of the sale, and the full names and addresses of both the buyer and seller. Some states require the odometer reading at the time of sale. If the vehicle has a lien — meaning a bank or lender still owns part of it — that should be noted on the bill of sale as well.
Both the buyer and seller must sign and date the bill of sale. Some states require the signatures to be notarized, meaning a notary public witnesses the signing and stamps the document. Check your state's motor vehicle website to see whether notarization is required where you live. Even if it is not required, getting a notary to witness the signatures adds a layer of protection, especially in a private sale.
Where to find a bill of sale form
Many states provide an official bill of sale form on their motor vehicle department website. Search "[your state] bill of sale form" to find it. If your state does not have an official form, you can use a generic template from a legal document website, or you can write one yourself as long as it includes all the required information.
Some states have different forms depending on whether the vehicle is being sold between private parties, given as a gift, or inherited. Your state's motor vehicle website will specify which form applies to your situation. If you are buying from a dealer, the dealer usually provides the bill of sale as part of the paperwork.
When you need the bill of sale
You will need the bill of sale when you go to register the vehicle or transfer the title into your name. Bring it to your state's motor vehicle office along with the title, proof of insurance, and proof of residency. The motor vehicle office will use the bill of sale to confirm the sale price and the date, and to update their records to show you as the new owner.
If you are selling a vehicle, keep a copy of the signed bill of sale for your records. If the buyer later has an accident or gets a traffic ticket in the vehicle, the police or court may try to contact you as the registered owner. The bill of sale proves you no longer owned the vehicle at that time. It also protects you if the buyer does not pay off a loan attached to the vehicle — the bill of sale shows when you transferred ownership.
What happens if there is a lien on the vehicle
A lien is a claim a lender has on a vehicle because the seller still owes money on it. If you are buying a vehicle with a lien, the bill of sale should note the lender's name and the amount still owed. The seller is responsible for paying off the lien before or at the time of sale, usually by using part of the sale price.
If the seller does not pay off the lien, the lender can repossess the vehicle from you even though you bought it in good faith. Before you hand over money, ask the seller to show you proof that the lien has been paid off, or arrange for the lender to be paid directly from the sale proceeds. The bill of sale protects you by creating a written record of when the sale happened and what was owed at that time.
Differences between a bill of sale and a title
The title is the official document issued by your state that proves ownership of the vehicle. Only the state motor vehicle department can issue or transfer a title. The bill of sale is a private document between you and the other party that proves a sale took place. You need both: the bill of sale shows the transaction happened, and the title shows who currently owns the vehicle according to the state.
When you buy a vehicle, the seller signs the title over to you, and you submit both the signed title and the bill of sale to the motor vehicle office. The office then issues a new title in your name. If you lose the bill of sale after the sale is complete, you can usually get a copy from the other party or request a duplicate from the motor vehicle office, though some states charge a fee for duplicates.
Protecting yourself in a private sale
In a private sale, take time to inspect the vehicle and verify its history before you sign anything. Use the VIN to run a vehicle history report through services like Carfax or AutoCheck, which show past accidents, title problems, and whether the vehicle was ever reported stolen. These reports cost money but can reveal serious issues that would affect the vehicle's value or your safety.
Meet the seller in a public place and bring someone with you. Ask to see the current title and the keys. If the seller cannot produce the title or seems reluctant to show it, walk away — that is a sign of a problem. Once you have signed the bill of sale and handed over money, it is much harder to undo the transaction if you discover the vehicle has a hidden lien or was reported stolen.
Frequently Asked Questions
Do I need a bill of sale if I am buying from a car dealer?
Dealers provide their own paperwork, which serves the same purpose as a bill of sale. However, you should still receive a document that shows the vehicle details, the price, and both signatures. Keep a copy for your records along with any warranty information the dealer provides.
What if I lose the bill of sale after the sale is complete?
Contact the other party and ask for a copy. If they cannot provide one, you can request a duplicate from your state's motor vehicle office, though some states charge a fee. The motor vehicle office has a record of the title transfer, so they can often provide documentation of the sale date and price.
Can I sell a vehicle without a bill of sale?
Most states require a bill of sale to transfer ownership on the title, so you should create one even if your state does not legally mandate it. Without one, you have no proof the sale happened, which can cause problems for both you and the buyer if questions arise later.
Does the bill of sale have to be notarized?
It depends on your state. Some states require notarization; others do not. Check your state's motor vehicle website to see what is required. Even if notarization is not required, having a notary witness the signatures adds protection and is usually inexpensive.
What if the buyer and I disagree on the sale price later?
The bill of sale is the written record of what you both agreed to. If you signed it, you are bound by the price shown on it. This is why it is important to make sure the price is correct before you sign, and to keep a copy for your records.