A bill of sale is a written record that you and the buyer sign to prove the car has changed hands
When you sell a car, a bill of sale is a document that shows the sale happened, who owned the car before, who owns it now, and what was paid. It is signed by both you and the buyer. The bill of sale is not the same as the title — the title is the legal proof of ownership that the state issues. The bill of sale is your record that the transfer took place.
You need a bill of sale for your own protection and for the buyer's protection. It proves you are no longer responsible for the car once the buyer takes it. It also protects the buyer by showing they paid for it and that you claimed to own it at the time of sale. If something goes wrong later — the car breaks down, there is a problem with the title, or someone claims the car was stolen — the bill of sale is evidence of when and how the sale happened.
Most states do not require a bill of sale by law, but many states ask you to bring one to the DMV when you transfer the title. Some states have an official bill of sale form; others let you use any written record that has the key information. Even if your state does not require one, creating a bill of sale is a practical step that takes a few minutes and protects both of you.
Key Takeaways
- A bill of sale records that a car was sold, who sold it, who bought it, and for how much — and both parties sign it.
- The bill of sale is separate from the title; it is proof the transaction happened, not proof of ownership.
- Some states require a bill of sale at the DMV when transferring the title, while others do not, but having one protects both seller and buyer.
- A bill of sale should include the vehicle identification number (VIN), the sale price, the date, and the signatures of both the seller and buyer.
- You can use your state's official form, a template from a reliable source, or a handwritten document as long as it contains the required information.
What information goes on a bill of sale
A bill of sale needs enough detail that someone reading it later can understand exactly what car was sold and when. Start with the vehicle itself: the year, make, model, color, and the vehicle identification number (VIN). The VIN is a 17-character code stamped on the car and listed on the title and registration. It is the most reliable way to identify the exact vehicle.
Next, write the sale price — the amount of money that changed hands. Write it in both numbers and words (for example, "$5,000 (five thousand dollars)") so there is no confusion later. Include the date of the sale. Then add the names and addresses of both the seller and the buyer, and have both sign and date the document. Some people also add the odometer reading on the day of sale, which can be useful if there is ever a dispute about the car's condition or mileage.
If the buyer is paying in cash, you might note "cash" as the payment method. If they are financing the car or paying by check, you can note that too. Some sellers also add a line saying the car is sold "as-is," meaning the buyer accepts it in its current condition with no promises about repairs or future problems. This protects you from claims that you promised something you did not.
Where to find a bill of sale form
Many states have an official bill of sale form on their DMV website. Search "[your state] DMV bill of sale" to see if one exists. If your state has an official form, using it is the safest choice because it includes everything the DMV expects to see.
If your state does not have an official form, you can find templates online from sources like your state's Secretary of State office, the American Automobile Association (AAA), or legal document websites. Make sure any template you use includes all the information listed above: VIN, sale price, date, seller name and address, buyer name and address, and signatures.
You can also write a bill of sale by hand on plain paper. It does not have to be fancy or typed. As long as it includes the required information and both parties sign it, a handwritten bill of sale is legally valid in most states. The key is that it is clear, complete, and signed by both of you.
How to fill out and sign the bill of sale
Fill in all the blanks with accurate information. Use the VIN from the title or registration, not from memory. Write the actual sale price, even if you negotiated a lower price than the car's market value — the bill of sale should show what actually changed hands. Write the full date, including the year.
Both you and the buyer should sign the document in front of each other if possible. Some people have the signatures notarized, meaning a notary public witnesses the signing and stamps the document. Notarization is not required in most states, but it adds an extra layer of proof that the signatures are real. If you want a notarized bill of sale, you can visit a bank, a UPS store, or a notary service and pay a small fee (usually $5 to $15).
Make at least two copies — one for you and one for the buyer. Keep your copy in a safe place. You may need it later if there is a dispute, or if the buyer fails to transfer the title and you need to prove you sold the car.
What happens after you sign the bill of sale
After you and the buyer sign the bill of sale, the buyer needs to take it to the DMV along with the title to transfer ownership into their name. The exact process varies by state. Some states ask the buyer to submit the bill of sale as part of the title transfer process. Others use it as supporting documentation if there is a question about the sale.
Your job as the seller is to sign the title over to the buyer and give them the bill of sale. Once they have both documents, they can complete the transfer at the DMV. You should also notify your insurance company that you have sold the car so they can cancel your policy.
Keep your copy of the bill of sale for at least a few years. If the buyer does not transfer the title promptly and the car is involved in an accident or a crime, the title might still be in your name. Your copy of the bill of sale proves you sold it and when, which protects you from liability.
Differences between a bill of sale and a title
The title is an official document issued by your state that proves who owns the car. It has a serial number, is printed on special paper, and is the legal record of ownership. Only the state can issue a title, and only the state can transfer it from one person to another.
The bill of sale is a record you create to document that the sale happened. It is not issued by the state and does not prove ownership by itself. Instead, it proves that a transaction took place on a specific date for a specific price. The buyer uses the bill of sale along with the title to transfer ownership at the DMV.
Think of it this way: the title is the official proof of ownership. The bill of sale is the proof that ownership changed hands. You need both documents to complete a car sale properly.
What to do if you lose your copy of the bill of sale
If you signed a bill of sale but later cannot find your copy, ask the buyer for a copy of theirs. If the buyer no longer has it, you can ask them to sign a new bill of sale with the same information and date as the original. This is not ideal, but it is better than having no record at all.
If you never created a bill of sale and now need one, you can still create one after the fact. Write down the information you remember — the date of sale, the price, the car's details — and ask the buyer to sign it. A bill of sale created after the sale is less ideal than one signed at the time, but it is still better than nothing if you need proof later.
Frequently Asked Questions
Do I have to notarize the bill of sale?
Notarization is not required in most states, but it is optional and adds proof that the signatures are genuine. If you want to notarize it, visit a bank, UPS store, or notary service and pay a small fee. The buyer can also choose to have it notarized on their end if they want extra protection.
What if the buyer and I disagree on the sale price?
The bill of sale should show the actual price that was agreed on and paid. If you disagree, do not sign until you both agree on the amount. Once signed, the bill of sale is a record of what you both agreed to, so make sure it is correct before you sign.
Can I sell a car without a bill of sale?
In most states, you can sell a car without a bill of sale, but it is not recommended. Without a bill of sale, you have no written proof that the sale happened or when. If the buyer does not transfer the title and the car is involved in an accident, you could be held responsible. A bill of sale protects both of you.
Do I need to report the sale to my insurance company?
Yes. Contact your insurance company and tell them you sold the car. Give them the date of sale and the buyer's name if they ask. Your insurance company will cancel your policy for that vehicle. This stops you from paying premiums on a car you no longer own.
What if the buyer never transfers the title into their name?
If the buyer does not transfer the title, it will remain in your name. Keep your copy of the bill of sale to prove you sold the car and are no longer responsible for it. If the car is involved in an accident or gets a parking ticket, you can show the bill of sale to prove the car belonged to the buyer at that time. Contact your state's DMV if you need guidance on what to do next.