A bill of sale is a written record that you and the seller (or buyer) sign to prove that a car has changed hands and for how much
A bill of sale is a document that shows ownership of a vehicle has moved from one person to another. It lists the car's details, the sale price, the date, and the signatures of both the seller and buyer. The document protects both of you: it proves the seller no longer owns the car, and it proves the buyer paid for it. Without one, disputes can arise later about who owns the vehicle or whether the sale actually happened.
You do not need a fancy legal form to create a bill of sale. Many states do not require a specific format. What matters is that the document includes the essential information, is signed by both parties, and is kept in a safe place. Some people use a template they find online; others write one by hand. Either way works, as long as the key details are there.
Key Takeaways
- A bill of sale records the vehicle identification number (VIN), sale price, date, and signatures of both seller and buyer.
- Most states do not require a specific form, but some states have an official template you can use if you prefer.
- The buyer should keep the bill of sale when registering the car with the state; the seller should keep a copy for their records.
- A bill of sale protects both parties by creating a paper trail that proves the transaction took place and at what price.
What information goes on a bill of sale
A bill of sale should include the vehicle's VIN (vehicle identification number), which is a 17-character code unique to that car. You can find it on the dashboard, the driver's side door jamb, or the title document. Include the year, make, model, and color of the car as well. These details make it clear which vehicle is being sold.
Write down the sale price in both numbers and words (for example, "$5,000" and "Five Thousand Dollars"). Include the date of the sale. Add the full names and addresses of both the seller and the buyer. Both parties should sign and print their names. Some people also add the odometer reading on the day of sale, which can be useful if questions arise later about the car's condition or mileage.
If the car has a lien on it—meaning a bank or lender still owns part of it—that should be noted on the bill of sale. The buyer needs to know whether the seller still owes money on the vehicle, because that debt does not automatically go away when the car changes hands.
State-specific bill of sale forms
Some states provide an official bill of sale form that you can read and use. States like Florida, Georgia, and Texas have templates available on their Department of Motor Vehicles websites. Using the state's official form can make the document stronger if there is ever a dispute, because it shows you followed the state's own format.
Other states do not provide an official form but still accept any written bill of sale as long as it contains the required information. You can check your state's DMV website to see whether an official form exists. If it does, you can use it; if it does not, a handwritten or typed document with the key details will work.
When to sign the bill of sale
Both the seller and buyer should sign the bill of sale at the time of the sale, ideally in front of each other. This is the moment when money changes hands and the keys are handed over. Signing at that moment creates a clear record of when the transaction happened. If one person signs later, it can raise questions about whether the sale was legitimate.
Some people have the bill of sale notarized, meaning a notary public witnesses the signatures and stamps the document. Notarization is not required in most states, but it adds an extra layer of proof that both parties actually signed. If you are buying or selling a car privately and want extra protection, notarization is worth the small fee.
What happens to the bill of sale after the sale
The buyer should keep the original bill of sale and bring it when registering the car with the state. The registration office will want to see proof of the sale price and the transaction. The seller should also keep a copy for their records, in case questions come up later about the sale or the car's condition.
If there is a lien on the car, the bill of sale becomes part of the paperwork trail showing that the buyer took on responsibility for paying off that debt. Keep the bill of sale in a safe place—a file folder, a safe, or a digital copy—for at least several years. You may need it if there is a dispute about ownership or if the car is involved in an accident or legal issue.
Bill of sale versus the title document
A bill of sale is different from the car's title. The title is the official government document that shows who owns the car. The seller's name is on the title, and when the car is sold, the seller must sign the title over to the buyer. The buyer then takes the signed title to the state's DMV to register the car in their name.
The bill of sale is a private record between you and the other party. It documents the sale itself—the price, the date, and the agreement. The title is the legal proof of ownership. You need both: the bill of sale shows the transaction happened, and the title shows who the state recognizes as the owner. Without the bill of sale, there is no record of the price or the terms; without the signed title, the buyer cannot legally register the car.
Protecting yourself with a bill of sale
For a seller, a bill of sale proves you no longer own the car. If the buyer gets into an accident or breaks the law with the vehicle after the sale, the bill of sale shows the car was no longer yours. Keep a copy and note the date you handed over the keys. Some sellers also take a photo of the odometer and the car's condition on the day of sale, which can help if questions arise later.
For a buyer, a bill of sale proves you paid for the car and that the seller agreed to the sale. If the seller later claims they did not sell the car, or if there is a dispute about the price or condition, the bill of sale is your proof. It also protects you if the car has outstanding tickets or fines—the bill of sale shows when ownership changed hands.
Frequently Asked Questions
Do I have to use a specific form for a bill of sale?
Most states do not require a specific form. A handwritten or typed document with the VIN, sale price, date, and both signatures will work. However, some states provide an official template on their DMV website, and using it can add extra weight if there is ever a dispute.
What if I lose the bill of sale after the sale?
If you lose it, you can ask the other party for a copy. If they will not provide one, you may be able to recreate it with the details you remember and have both parties sign it again. However, it is better to keep the original in a safe place from the start.
Can I sell a car without a bill of sale?
Technically, yes—the sale can happen without one. However, it is risky for both parties because there is no written proof the transaction occurred. Without a bill of sale, disputes about price, condition, or ownership are harder to resolve. It is always better to have one.
Does the bill of sale have to be notarized?
Notarization is not required in most states, but it is optional and adds extra proof that both parties signed. If you want extra protection or are concerned about the other party later claiming they did not sign, notarization is worth the small cost.
What if the car has a loan on it?
Note the lien on the bill of sale so the buyer knows the car is not fully paid off. The buyer should understand they may need to pay off the loan or take over the payments. The lender's name and the amount owed should be included in the bill of sale if possible.