A bill of sale is a written record that you and the buyer sign to prove the car changed hands and at what price
When you sell a car to someone privately — not through a dealer — a bill of sale protects both of you by documenting the sale in writing. It shows the buyer paid you, shows you no longer own the vehicle, and gives both parties proof of the transaction if questions come up later with the title office, insurance company, or lender. Most states do not legally require a bill of sale, but many title offices will ask for one when the buyer registers the car, and your lender may require it if you still owe money on the vehicle.
A bill of sale does not transfer the title itself — that happens when you sign the title document over to the buyer and file it with your state's motor vehicle department. The bill of sale is a separate record that sits alongside the title transfer. You can write one on a blank piece of paper, use a template from your state's motor vehicle website, or buy a pre-printed form from an office supply store. The content matters more than the format.
Key Takeaways
- A bill of sale should include the vehicle identification number (VIN), the sale price, the date of sale, and the printed names and signatures of both the seller and buyer.
- You should complete the bill of sale before handing over the keys and before the buyer gives you money, so both parties sign it together.
- Keep a copy for your records and give the buyer a copy to present to the title office when they register the vehicle in their name.
- Some states provide an official bill of sale form on their motor vehicle department website, while others accept any written record that includes the required information.
What information must go on the bill of sale
Start with the vehicle itself. Write down the full vehicle identification number (VIN) — the 17-character code stamped on the driver's side dashboard and listed on your title. Include the year, make, model, and color. Add the current odometer reading. This information prevents confusion if either party later claims the sale was for a different vehicle.
Next, write the sale price in both numbers and words — for example, "Five Thousand Dollars ($5,000.00)". Include the date of the sale. Then add the full legal names, addresses, and phone numbers of both the seller (you) and the buyer. Some forms ask for driver's license numbers; this is optional but adds another layer of identification.
At the bottom, both you and the buyer should print your names and sign and date the document. Some people add a line stating the vehicle is sold "as-is" with no warranty, which protects you if the buyer later claims something was wrong with the car that you did not disclose. If you are still paying off a loan on the vehicle, note that on the bill of sale — for example, "Vehicle subject to existing lien held by [Lender Name]."
Where to find a bill of sale form
Your state's motor vehicle department website usually has a free bill of sale form you can read and print. Search "[Your State] motor vehicle bill of sale" to find it. Some states call it a "Notice of Sale" or "Vehicle Sale Agreement" instead. If your state does not provide an official form, any written document with the information above will work.
Office supply stores like Staples sell pre-printed bill of sale pads for a few dollars. Online legal document sites also offer templates, though you do not need to pay for one — the free state form or a handwritten version works just as well. The buyer may also have a form they prefer; if so, you can use theirs as long as it includes all the required information.
When and how to sign the bill of sale
Complete and sign the bill of sale before the money changes hands and before you give the buyer the keys. Meet in person if possible so both of you can sign at the same time and verify each other's identity. If you are mailing the document, have the buyer sign it, mail it back to you, and then mail them the title and keys — do not reverse this order.
Make at least two copies: one for you and one for the buyer. If you are financing part of the sale or the buyer is taking out a loan to pay you, the lender may ask for a copy as well. Keep your copy in a safe place for at least a few years in case a dispute arises or the title office asks questions about the transaction.
What happens after you sign
After both of you sign, the buyer takes their copy to the motor vehicle department when they register the car in their name. They will also need the signed title (the document you sign over to them) and proof of insurance. The title office will record the new owner and update their records. This process usually takes one to four weeks depending on how busy your state's office is.
You should also notify your insurance company that you no longer own the vehicle so they can cancel your policy. If you still owe money on the car, contact your lender to let them know the vehicle has been sold; they will handle the lien release once they receive payment from you or the buyer.
Common mistakes to avoid
Do not leave the sale price blank or write "cash" without a number — the title office needs a specific amount. Do not sign the title over to the buyer before you have the bill of sale signed and a copy in your hands. Do not accept a personal check and hand over the keys the same day; wait for the check to clear, or ask for a cashier's check or money order instead.
Do not forget to keep a copy for yourself. If the buyer later claims they never received the car or disputes the sale price, your signed copy is your proof. Do not assume the buyer will handle notarizing the bill of sale — most states do not require it, but if yours does, make sure it happens before you part with the vehicle.
State-specific rules you should know
A few states require the bill of sale to be notarized, meaning a notary public must witness both signatures. Check your state's motor vehicle website to see if this applies to you. Some states ask for the bill of sale to be filed with the title transfer; others do not. A handful of states have specific wording requirements or ask for additional information like the vehicle's condition or whether it has been in an accident.
Your state's motor vehicle department website will tell you exactly what is required in your area. If you cannot find the information online, call the office directly — they handle these questions every day and can tell you in a few minutes whether you need anything beyond the basic bill of sale.
Frequently Asked Questions
Do I need a notary to sign a bill of sale?
Most states do not require notarization, but a few do. Check your state's motor vehicle website or call the department to confirm. If notarization is required, both you and the buyer must go to a notary together, or you can notarize your signatures separately and then exchange copies.
What if the buyer wants to pay me in installments?
You can note the payment terms on the bill of sale — for example, "$2,000 today, $2,000 in 30 days." However, do not sign the title over until you have received all the money. Some sellers keep the title in a safe place and only hand it to the buyer once the final payment clears.
Can I use a bill of sale instead of signing the title?
No. The bill of sale and the title are two separate documents. You must sign the title over to the buyer for them to register the car in their name. The bill of sale is a record of the transaction but does not transfer ownership.
What if I lost my copy of the bill of sale?
If you kept the buyer's information, you can contact them and ask for another copy. If you cannot reach them, you can file a report with your state's motor vehicle department showing you sold the vehicle. Keep any other records of the sale — text messages, emails, or bank deposits — as backup proof.
Do I need a bill of sale if the buyer is paying cash?
Yes. A bill of sale protects you regardless of how the buyer pays. It proves you received payment and no longer own the vehicle, which matters if the buyer later has an accident or the car is involved in a crime. The title office may also ask for it when the buyer registers the vehicle.