A bill of sale is a written record that proves you sold or bought a vehicle
A bill of sale is a document that shows the vehicle changed hands from one owner to another. It records who sold it, who bought it, what vehicle it is, how much money changed hands, and when the sale happened. Both the seller and buyer sign it. The document protects both parties by creating proof of the transaction — the buyer has evidence they own the vehicle, and the seller has evidence they no longer do.
You need a bill of sale whether you are selling a car to a friend, buying one from a private party, or trading with a dealer. Some states require it by law before you can register the vehicle in your name. Even where it is not legally required, having one prevents disputes later about who owns the car, what was promised, or what price was agreed to.
Key Takeaways
- A bill of sale is a signed document proving who owned the vehicle before the sale and who owns it now, along with the sale price and date.
- Most states do not require a bill of sale by law, but many require it as proof of ownership when you register the vehicle at the DMV.
- You can use a template from your state's DMV website, a generic form, or write one yourself as long as it includes the vehicle details, both signatures, and the sale date.
- Keep a copy for your records even after you register the vehicle, because it proves you bought it and may be needed if a title dispute arises later.
What information goes on a bill of sale
A bill of sale must include the vehicle's year, make, model, and Vehicle Identification Number (VIN). You will find the VIN on the dashboard on the driver's side, on the title document, or on the registration card. The form also needs the current odometer reading, the sale price in dollars, and the date of the sale.
Both the seller and buyer must print their full names and sign the document. Many forms ask for addresses and phone numbers for both parties as well. If the vehicle has a lien on it (meaning a bank or lender still owns part of it), that should be noted on the bill of sale. Some states also ask whether the sale included a warranty or was sold "as-is" with no promises about the vehicle's condition.
Where to find a bill of sale form
Your state's DMV website usually has a free bill of sale template you can read and print. Search "[your state] DMV bill of sale" to find it. Some states call it a "sales agreement" or "vehicle transfer form" instead. If your state does not provide one, you can use a generic template from legal document websites or create your own.
If you are buying or selling through a dealer, the dealer will provide the bill of sale as part of the paperwork. For private sales, you and the other party can use the state form, a template, or even a handwritten document as long as it includes all the required information and both parties sign it. Handwritten bills of sale are legally valid in most states.
How to fill out and sign a bill of sale
Print or write out the form clearly so all information is legible. Fill in the vehicle details exactly as they appear on the title — any mismatch can cause problems when you register the car. Write the sale price as a number and spell it out in words to prevent disputes. Both the seller and buyer should sign and date the form in front of each other if possible, though this is not always required by law.
Some states ask that the bill of sale be notarized, meaning a notary public witnesses the signatures and stamps the document. Check your state's DMV website to see if notarization is required. If it is, you can get a document notarized at a bank, UPS store, or notary service for a small fee. If it is not required, you do not need to pay for notarization.
When to use the bill of sale at the DMV
Bring the signed bill of sale to your state's DMV or equivalent agency when you register the vehicle in your name. The DMV will ask for it along with the title, proof of insurance, and a completed registration form. The bill of sale proves you are the new owner and that the previous owner agreed to the sale. Without it, the DMV may not process your registration.
If you are the seller, keep a copy of the signed bill of sale for your records. It proves you sold the vehicle and no longer own it. This protects you if the new owner gets a traffic ticket, is involved in an accident, or the vehicle is used in a crime — the bill of sale shows you transferred ownership on a specific date.
What happens if you lose the bill of sale
If you have already registered the vehicle and the title is in your name, losing the bill of sale is not an emergency. Your registration and title documents prove ownership. However, if you need to prove when you bought the vehicle or what you paid for it, you will not have that record.
If you have not yet registered the vehicle and you lose the bill of sale, contact the seller and ask for another signed copy. If the seller will not provide one, you can create a new bill of sale with the same information and have both parties sign it again. Some states allow you to register without a bill of sale if you have the title and can show proof of purchase another way, such as a bank transfer receipt or cancelled check.
Bill of sale for vehicles with liens
If the vehicle still has a loan against it, the lender's name and the loan balance should be noted on the bill of sale. The seller cannot transfer a clear title to you until the loan is paid off. In most cases, the lender will pay off the loan from the sale proceeds at closing, and you will receive a title free of any liens.
Ask the seller to provide proof that the loan will be paid off at sale, such as a payoff quote from the lender. This protects you from buying a vehicle that still has debt attached to it. Once the loan is paid and the title is clear, you can register the vehicle normally using the bill of sale.
Frequently Asked Questions
Do I need a bill of sale if I am buying from a dealer?
Dealers provide their own sales paperwork, which serves the same purpose as a bill of sale. You will receive a document showing the vehicle details, price, and both signatures. Bring this to the DMV along with the title when you register the car.
Can I write a bill of sale by hand?
Yes. A handwritten bill of sale is legally valid in most states as long as it includes the vehicle details, sale price, date, and both signatures. Write clearly so all information is readable. Check your state's DMV website to see if there are any specific formatting requirements.
What if the seller will not sign the bill of sale?
Do not complete the purchase. A bill of sale protects you by proving the seller agreed to transfer ownership. Without it, you have no legal proof you own the vehicle, and the DMV will not register it in your name. Walk away from the deal.
How long should I keep the bill of sale after I register the vehicle?
Keep it indefinitely. The bill of sale proves when you bought the vehicle and what you paid for it. You may need it for insurance claims, tax records, or to prove ownership if a title dispute arises years later.
Is a bill of sale the same as a title?
No. A bill of sale is proof of the sale transaction. A title is the legal ownership document issued by the state. You need both — the bill of sale to show the sale happened, and the title to show who the state recognizes as the owner.