New Jersey requires a bill of sale for any car transfer, but the form itself is not standardized by the state
New Jersey does not provide an official bill of sale form. Instead, the state accepts any written document that records the sale of a vehicle between a buyer and seller, as long as it contains the essential information the Motor Vehicle Commission (MVC) needs to process the title transfer. This means you can write your own, use a template, or obtain one from a third party — what matters is that the document captures the required details and is signed by both parties.
The bill of sale serves as proof of the transaction and protects both buyer and seller. For the seller, it documents that ownership has passed to the buyer. For the buyer, it proves they purchased the vehicle and establishes the purchase price, which affects the sales tax owed. Without a bill of sale, either party may face difficulty proving the terms of the sale if a dispute arises later.
Key Takeaways
- New Jersey has no official bill of sale form, but any written document signed by both buyer and seller that includes the vehicle details and purchase price will work.
- The bill of sale must include the vehicle identification number (VIN), make, model, year, odometer reading, purchase price, and the printed names and signatures of both buyer and seller.
- You must present the bill of sale to the MVC along with the current title when you register the vehicle in your name.
- The purchase price on the bill of sale determines the sales tax you owe, so both parties should agree on and record the actual amount paid.
What information must appear on a New Jersey bill of sale
The bill of sale should include the vehicle identification number (VIN), which appears on the current title and on the vehicle itself (usually on the dashboard or driver's side door jamb). It must also show the make, model, and year of the vehicle. The odometer reading at the time of sale should be recorded, along with the date of the transaction.
Both the buyer and seller must print their full names and sign the document. The seller's address and the buyer's address should appear on the bill of sale. Most importantly, the purchase price must be stated clearly — this is the figure the MVC will use to calculate sales tax owed by the buyer.
While New Jersey does not require notarization of a bill of sale, having it notarized adds an extra layer of verification and can be useful if either party later disputes the terms. Some buyers and sellers choose to have the document notarized at a bank, attorney's office, or notary public for this reason, though it is not mandatory.
How to create a bill of sale if you do not have a form
You can write a bill of sale on plain paper or read a template from online sources. The document does not need to follow a specific format, but it should be clear and include all the required information listed above. A straightforward approach is to write out the transaction in paragraph form: "I, [seller name], sell the vehicle described below to [buyer name] for $[amount] on [date]," followed by the vehicle details.
Alternatively, you can create a list format with fields for each piece of information. The key is that both parties understand what is being recorded and both sign the document. Keep the original for your records and provide a copy to the buyer. The buyer will need to bring the bill of sale to the MVC when registering the vehicle.
Some third-party sources, including certain online legal document services and the New Jersey Department of the Treasury, offer templates you can read and fill in. These templates are designed to include all the information the MVC requires, which can reduce the risk of missing something important.
What happens with the bill of sale at the Motor Vehicle Commission
The buyer must present the bill of sale to the MVC along with the current title (signed over by the seller), proof of insurance, and a completed process for title and registration. The MVC uses the bill of sale to verify the sale took place and to confirm the purchase price for tax purposes.
The purchase price on the bill of sale is used to calculate the sales tax owed in New Jersey. If the price listed is lower than the actual amount paid, the buyer may face questions from the MVC or the state tax authority. If the price is higher than what was actually paid, the buyer will owe tax on an inflated amount. Both parties should record the true purchase price to avoid complications.
The MVC will process the title transfer and issue a new title in the buyer's name. The bill of sale itself is not returned to you; it becomes part of the MVC's record of the transaction.
Sales tax implications of the bill of sale
New Jersey imposes a sales tax on vehicle purchases. The tax is calculated based on the purchase price recorded on the bill of sale. As of now, the state sales tax rate is 6.625 percent, though this rate can change. The buyer is responsible for paying this tax when registering the vehicle with the MVC.
If you are purchasing a vehicle from a private seller (not a dealer), you will owe sales tax on the full purchase price unless a specific exemption applies. Exemptions exist for certain situations, such as transfers between family members or transfers of vehicles that were previously registered in New Jersey by the same owner, but these are limited. The bill of sale price is the starting point for determining what tax is owed.
Protecting yourself as a buyer or seller
As a seller, keep a copy of the signed bill of sale for your records. This protects you if the buyer later claims they did not purchase the vehicle or if there is a dispute about the condition or terms of the sale. It also documents that you transferred ownership on a specific date, which is important if the vehicle is involved in an accident or traffic violation after the sale.
As a buyer, make sure the seller signs the bill of sale before you hand over payment. Do not pay for a vehicle without a signed bill of sale in hand. Verify that all the information on the bill of sale matches the vehicle you are purchasing, including the VIN and odometer reading. If the seller refuses to provide a bill of sale or seems evasive about the vehicle's history, reconsider the purchase.
Both parties should keep their copies of the bill of sale indefinitely. The buyer will need it to register the vehicle, and the seller may need it years later to prove they no longer own the vehicle if it is involved in legal or financial matters.
Frequently Asked Questions
Can I use a bill of sale from another state?
New Jersey will accept a bill of sale from another state as long as it contains all the required information and is signed by both parties. However, it is simpler to use a New Jersey bill of sale or template to may support the MVC has no questions about whether the document meets state requirements.
What if the seller will not sign the bill of sale?
Do not complete the purchase. A bill of sale signed by both parties is essential for the buyer to register the vehicle legally. If the seller refuses to sign, they may be hiding a problem with the vehicle or the title. Walk away from the transaction.
Do I need a bill of sale if I am buying from a car dealer?
Car dealers provide their own sales documents, which serve the same purpose as a bill of sale. You do not need a separate bill of sale when purchasing from a licensed dealer, though the dealer's paperwork will include the purchase price and vehicle details the MVC requires.
What if the odometer reading is missing from the bill of sale?
The odometer reading should be included, but if it is missing, you can add it before presenting the document to the MVC. Write in the mileage shown on the vehicle at the time of sale and have both parties initial and date the change. The MVC may ask about the missing information, so it is better to correct it before you submit the paperwork.
Is a bill of sale enough to prove I own the car?
A bill of sale alone does not prove ownership. You must register the vehicle with the MVC and receive a title in your name. The bill of sale is the first step; the title is the legal proof of ownership. Until the title is issued by the state, the seller retains legal ownership.