What a bill of sale is and why you need one

A bill of sale is a written record that you and the buyer (or seller) sign to show that a car has changed hands. It documents who owned the car, who owns it now, the price paid, and the date of the sale. The document protects both of you by creating proof of the transaction if questions come up later about ownership, price, or condition.

You need a bill of sale because it is the paper trail between the old owner and the new one. Your state's Department of Motor Vehicles uses it when you register the car in a new name. If a dispute arises — the buyer claims the car was promised to run for another year, or the seller claims they were never paid — the bill of sale is the evidence of what was actually agreed to.

A bill of sale is not the same as a title. The title is the legal document that proves ownership and is issued by your state. The bill of sale is the record of the transaction itself. You will need both to complete a car sale.

Key Takeaways

  • A bill of sale documents the sale price, date, vehicle details, and signatures of both buyer and seller, and is required by most states when registering a car in a new owner's name.
  • You can read a free template from your state's Department of Motor Vehicles website, or use a general template and fill in the specific details of your sale.
  • The bill of sale should include the vehicle identification number (VIN), odometer reading, sale price, and a statement of the car's condition at the time of 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 requirements.
  • Keep a copy of the signed bill of sale for your records and give the original to the buyer or submit it with your title transfer paperwork.

Where to find a bill of sale template

Your state's Department of Motor Vehicles website usually has a free bill of sale form you can read and print. Search "[your state] DMV bill of sale" to find it. Some states call it a "sales agreement" or "transfer of ownership" form instead. The state version is designed to meet your state's specific requirements, so it is the safest choice.

If your state does not provide one, or you prefer a general template, you can find bill of sale PDFs on legal document websites. These templates are generic and work in most states, but check your state's DMV website first to see if there are any required fields or language you must include. Some states require the odometer reading, for example, or a specific statement about the car's condition.

You can also ask your local DMV office for a form, or call ahead to confirm what information must be on the bill of sale before you fill it out.

What information to include on the bill of sale

Fill in the following details on your bill of sale: the full name and address of the seller, the full name and address of the buyer, the date of the sale, the sale price in dollars, and the vehicle identification number (VIN). The VIN is a 17-character code found on the driver's side of the dashboard, on the title, or on insurance documents.

Also include the vehicle's make, model, year, color, and license plate number. Write down the odometer reading at the time of sale — this is required in most states and helps prevent odometer fraud. Add a brief statement of the car's condition, such as "sold as-is" or a list of any known issues (for example, "transmission makes noise when shifting into reverse").

If the car has a lien on it — meaning a bank or lender still owns part of it — write that down too. The lien holder's name and address should appear on the title. This tells the buyer that the seller must pay off the loan before the title can be transferred.

How to sign and notarize the bill of sale

Both the buyer and the seller must sign and print their names on the bill of sale. Some states require the signatures to be notarized, meaning a notary public watches you sign and confirms your identity. Other states require only a witness — someone who is not related to either party and is at least 18 years old.

Check your state's DMV website to see whether notarization is required. If it is, you can find a notary at a bank, credit union, UPS store, or online notary service. Bring a photo ID and the unsigned bill of sale. The notary will watch you sign, stamp the document, and sign it themselves. There is usually a small fee, typically $5 to $15.

If only a witness is needed, have the witness sign and print their name and address on the bill of sale. Keep the witness's contact information in case questions come up later.

What to do with the bill of sale after the sale

Make at least two copies of the signed bill of sale — one for the seller and one for the buyer. If you are the seller, keep your copy for your records. If you are the buyer, keep your copy and bring the original to your DMV when you register the car in your name.

The buyer will need the bill of sale, the title, proof of insurance, and a completed registration form to register the car. The DMV will keep the bill of sale as part of the transfer record. If you are the seller, you do not need to submit anything to the DMV — the buyer handles the registration — but keep your copy in case a question arises about when you sold the car or what you were paid.

If the car has a lien, the seller must pay off the loan and get a release of lien from the lender before the title can be transferred. The bill of sale alone does not clear a lien.

Common mistakes to avoid when filling out a bill of sale

Do not leave any fields blank. An incomplete bill of sale can be rejected by the DMV or cause delays in registration. If a field does not explore to your sale, write "N/A" or "not applicable" instead of leaving it empty.

Do not use white-out or cross out information and write over it. If you make a mistake, start over with a fresh copy. The DMV may reject a bill of sale that looks altered or unclear.

Do not forget to include the odometer reading if your state requires it. Selling a car without an accurate odometer statement is illegal in most states and can result in fines for the seller. Make sure the reading matches what the odometer actually shows on the day of sale.

Do not sign the bill of sale before both parties have agreed on all the terms and the buyer has inspected the car. Once it is signed, it is a binding record of the transaction.

Frequently Asked Questions

Can I use a bill of sale instead of a title?

No. A bill of sale records the transaction, but the title is the legal proof of ownership. You need both. The buyer must have the title transferred into their name at the DMV to become the legal owner. The bill of sale supports that transfer but does not replace it.

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

Do not complete the purchase. A bill of sale is your proof that you bought the car and paid for it. Without it, you have no legal record of the transaction. If the seller refuses to sign, it is a red flag that something is wrong — the car may have a lien, be stolen, or have other legal problems.

Do I need a bill of sale if I am buying a car from a private person or a dealership?

Yes, for private sales. Most states require a bill of sale when a car changes hands between individuals. Dealerships usually provide their own sales paperwork that serves the same purpose, but ask the dealership what documents you will receive and whether you need a separate bill of sale.

How long should I keep the bill of sale after I sell the car?

Keep it for at least three to five years. It is proof of when you sold the car and what you were paid, which can matter for taxes or if a dispute comes up later. Some people keep it for the life of the car in case ownership questions arise years down the road.

What if I lost the bill of sale after the sale was complete?

Contact the other party and ask for a copy. If you cannot reach them, contact your DMV — they may have a record of the transfer on file. You can also request a certified copy of the title transfer, which serves as proof of the sale.