A bill of sale for a gifted car is a written record that you gave the vehicle to someone else for no money
When you give a car as a gift, you still need to transfer ownership on paper. A bill of sale is the document that proves the transfer happened and shows the state that the new owner is now responsible for the vehicle. Even though no money changed hands, most states require this document before the recipient can register the car in their name or get a title.
The bill of sale protects both of you. It shows the state that you no longer own the car, so you are not liable if the new owner gets into an accident or racks up parking tickets. It also protects the recipient by creating a paper trail that proves they own it, which matters if there is ever a dispute.
You do not need a lawyer or a special form — you can write one yourself on plain paper or use a template. What matters is that it includes the right information, is signed by both of you, and is kept with the car's title when the new owner registers it.
Key Takeaways
- A bill of sale for a gift must state that no money was paid and must be signed by both the giver and the recipient.
- The document should include the vehicle identification number (VIN), the make and model, the year, the current odometer reading, and the date of the gift.
- Your state's DMV or Secretary of State office may have a specific form you should use, so check their website before you write one from scratch.
- The recipient will need the bill of sale along with the signed title when they register the car in their name at the DMV.
- Keep a copy for your records even after you hand over the original, in case questions come up later.
What information must be on the bill of sale
Start with the basics about the car itself. Write down the year, make, and model — for example, "2015 Honda Civic." Then add the vehicle identification number (VIN), which is a 17-character code stamped on the car and printed on the title. You can find it on the dashboard near the windshield or on the title document itself. Include the current odometer reading (the mileage on the car right now) and the date you are giving the gift.
Next, write the names and addresses of both people — the person giving the car and the person receiving it. Use full legal names as they appear on driver's licenses. Then write a clear statement that the car is being given as a gift with no payment in exchange. A straightforward sentence like "The vehicle is transferred as a gift with no monetary consideration" is enough.
Sign and date the document. Both the giver and the recipient should sign it, and it is a good idea to have the signatures witnessed by a notary public or another person, though most states do not require this for a gift bill of sale.
Check your state's specific requirements
Some states have an official bill of sale form that they prefer or require. Your state's DMV or Secretary of State website will say whether you must use their form or whether a handwritten one is acceptable. A few states have specific language they want included, or they may require the document to be notarized.
If your state has an official form, read it and fill it out instead of writing your own. Using the state's form removes any question about whether you did it right and makes the registration process faster for the recipient. If your state does not have a required form, a straightforward handwritten or typed document with the information listed above will work.
You can also find templates online through your state's DMV website or through legal document sites. Make sure any template you use matches your state's rules — what works in one state may not work in another.
How to handle the title when you give the car
The bill of sale and the title are two different documents that work together. The title is the official ownership document issued by the state; the bill of sale is your record of the transfer. When you give the car as a gift, you sign the back of the title to transfer ownership, and you give both the signed title and the bill of sale to the recipient.
Before you sign the title, make sure you have filled in the recipient's name and address correctly. Some titles have a specific line for "gift" or "no consideration" — if yours does, mark that box. Then sign and date it. Do not sign it blank and let the recipient fill in their own name; the signature must match the name on the title.
If the title is lost or damaged, the recipient will need to get a replacement from the DMV before they can register the car. This adds time to the process, so look for the title before you give the car away.
What happens after the recipient gets the bill of sale and title
The recipient takes the signed title, the bill of sale, and proof of insurance to the DMV to register the car in their name. They will also need to pass a vehicle inspection in some states. The DMV will issue a new title with the recipient's name on it, and the car is then officially theirs.
The whole process usually takes a few weeks, depending on how busy the DMV is. The recipient should not drive the car on public roads until it is registered, even though they now own it. If they get stopped by police before registration is complete, they could face a fine.
Once the new title is issued, your responsibility for the car ends. You are no longer the owner, so you are not liable for accidents, tickets, or damage.
Keeping copies and protecting yourself
Make a copy of the bill of sale and the signed title before you hand them over to the recipient. Keep these copies in a safe place — a file folder, a safe deposit box, or a digital scan. If a question ever comes up about when the transfer happened or who owned the car at a certain time, you will have proof.
You should also notify your insurance company that you no longer own the car. Remove it from your policy so you are not paying for coverage you do not need. If the recipient gets into an accident before they register the car, your insurance could be held responsible if they think you still own it.
If the car has a loan on it, you cannot give it as a gift until the loan is paid off. The lender has a lien on the title, which means they own it until the debt is gone. You will need to pay off the loan first, get the lien removed from the title, and then transfer it to the recipient.
Common mistakes to avoid
Do not sign the title in blank and let the recipient fill in their name later. The signature must match the name on the title, and signing blank creates a gap in the ownership chain that can cause problems at the DMV.
Do not forget to include the VIN on the bill of sale. The VIN is how the state tracks the car, and without it the document may not be accepted during registration.
Do not skip the bill of sale just because no money changed hands. Even though it is a gift, the state still needs a record of the transfer. Without it, the recipient cannot register the car, and you remain on the title as the owner.
Do not wait too long to transfer the title. If you keep the car registered in your name after you have given it away, you could be held liable for accidents or violations. Transfer the title as soon as the recipient is ready to register the car.
Frequently Asked Questions
Can I write the bill of sale by hand, or does it have to be typed?
Handwritten is fine in most states as long as it is legible and includes all the required information. Typed is cleaner and easier to read, but either works. Check your state's DMV website to see if they have a preference.
What if the recipient loses the bill of sale before they register the car?
You can write another one. As long as both of you sign it and it has the same information as the original, a replacement bill of sale is acceptable. The DMV may ask why there are two, but a straightforward explanation that the first one was lost is usually enough.
Do I need to get the bill of sale notarized?
Most states do not require notarization for a gift bill of sale, but a few do. Check your state's DMV website. Even if it is not required, having a notary witness the signatures adds an extra layer of proof and can be helpful if questions come up later.
What if I want to give the car to a family member but keep it registered in my name for now?
You should not do this. Once you give the car away, you need to transfer the title. Keeping it registered in your name while someone else owns and drives it creates liability for you and confusion about who is responsible for the vehicle. Transfer the title as soon as the recipient is ready.
Can the recipient register the car without the bill of sale if they have the signed title?
It depends on your state. Some states accept just the signed title; others require the bill of sale as well, especially for a gift. The safest approach is to provide both. The bill of sale makes it clear that the transfer was a gift, which can matter for insurance and liability purposes.