A bill of sale is a written record that you and the seller sign to prove who owned the vehicle, when the ownership changed hands, and for how much money
When you buy a used car, truck, or motorcycle from another person, a bill of sale documents that transaction. It is not the same as a title — the title is the legal document that proves ownership and is filed with your state's motor vehicle department. A bill of sale is a simpler record that both you and the seller keep, and it protects both of you if questions arise later about the sale.
The bill of sale serves as proof that the sale happened, that you paid the agreed price, and that the seller transferred the vehicle to you on a specific date. If the seller later claims you still owe money, or if you later discover the seller did not actually own the vehicle, the bill of sale is your evidence of what was agreed. For the seller, it proves they sold the vehicle and are no longer responsible for it.
Key Takeaways
- A bill of sale is a written agreement between buyer and seller that documents the vehicle's description, the sale price, and the date of transfer.
- You and the seller should each keep a signed copy; the bill of sale is separate from the title and does not replace it.
- Most states do not require a bill of sale by law, but having one protects you if disputes arise about the sale or the vehicle's condition.
- The bill of sale should include the vehicle identification number (VIN), the odometer reading, and both parties' names and addresses.
What information goes on a bill of sale
A bill of sale for a used vehicle should include the seller's full name and address, your full name and address, and the date of the sale. It should also list the vehicle's make, model, year, color, and most importantly, the vehicle identification number (VIN) — a 17-character code found on the driver's side of the dashboard and on the title. The VIN ensures there is no confusion about which vehicle is being sold.
The bill of sale should state the sale price in dollars and cents, and note whether any money was exchanged or whether the vehicle was traded for something else. It should include the odometer reading at the time of sale, which some states require for legal purposes. Both you and the seller should sign and date the document. Some states ask for the signature of a witness, though this is not common.
Many bills of sale also include a statement about the vehicle's condition — for example, "sold as-is" — which means you are buying it in its current state and the seller makes no promises about repairs or hidden problems. If the seller has made specific promises about the vehicle, those can be written into the bill of sale as well.
Where to get a bill of sale form
You do not need to buy a bill of sale form. Your state's motor vehicle department website usually offers a free template you can read and print. Search "[your state] bill of sale vehicle" and look for the official government form. Many states have a single standard form, while others offer a basic version that you can modify.
If your state does not provide an official form, you can use a generic bill of sale template from a legal document website, or you can write one yourself on plain paper as long as it includes all the information listed above. The form does not have to be fancy or notarized — it just has to be clear, signed by both parties, and kept in a safe place.
Some car dealerships and used car lots provide their own bill of sale forms when you buy from them, though private sales between individuals are where a bill of sale is most important. If you are buying from a dealer, ask whether they provide one and request a copy for your records.
When a bill of sale matters most
A bill of sale is most valuable in private sales, where there is no dealership or paperwork trail. If you buy a car from a neighbor, a friend, or someone you find online, a bill of sale is your only written proof of what was agreed. Without it, the seller could later claim you still owe money, or you could have trouble proving you own the vehicle if the title transfer is delayed.
A bill of sale also protects you if the vehicle has outstanding loans or liens. If the seller still owes money to a bank on the car, the bill of sale does not erase that debt — but it does prove that you bought the vehicle in good faith and did not know about the lien. This can matter if a lender tries to repossess the car after you have bought it.
If you are selling a vehicle, a bill of sale protects you by proving you no longer own it. If the buyer gets into an accident or racks up parking tickets after the sale, the bill of sale shows the date you transferred ownership and can help you avoid liability.
How a bill of sale relates to the title
The bill of sale and the title are two different documents that serve different purposes. The title is the legal proof of ownership filed with your state's motor vehicle department. The bill of sale is a private record between you and the seller. You need both to complete a used vehicle purchase.
When you buy a used vehicle, the seller should give you the title (or a copy of it) so you can register the vehicle in your name. The bill of sale is what you and the seller sign to document the transaction itself. After you sign the bill of sale, you take the title to your state's motor vehicle department and file it in your name. The bill of sale stays with you as a record of the sale.
If the seller cannot provide a title — for example, if it is lost or the seller never received it — that is a major red flag. Do not buy the vehicle without the title, because you will not be able to register it legally or prove you own it. A bill of sale alone does not give you legal ownership; you need the title for that.
What to do with your bill of sale after the sale
Keep your signed copy of the bill of sale in a safe place, along with your other vehicle documents. Store it with your insurance papers, registration, and maintenance records. If you ever sell the vehicle later, you may need to show the bill of sale to prove when you bought it and for how much. If a dispute arises with the seller — for example, if they claim the vehicle was not actually theirs to sell — the bill of sale is your evidence of the transaction.
Some people photograph or scan their bill of sale and store a digital copy as well. This is a good idea in case the paper copy is lost or damaged. You do not need to file the bill of sale with any government agency; it is a private document between you and the seller.
Frequently Asked Questions
Do I legally have to have a bill of sale?
Most states do not require a bill of sale by law, but having one is strongly recommended for private sales. It protects you if the seller later disputes the sale or if the vehicle has hidden problems. Check your state's motor vehicle department website to see if your state has specific requirements.
What if the seller will not sign a bill of sale?
A seller who refuses to sign a bill of sale is a warning sign. It suggests they may not actually own the vehicle, or they may be trying to avoid a record of the sale. Do not proceed with the purchase until you have a signed bill of sale and the seller has shown you the title in their name.
Can I use a bill of sale instead of a title?
No. A bill of sale documents the sale, but only the title proves legal ownership. You need both. The seller must give you the title so you can register the vehicle in your name with your state's motor vehicle department.
Should the bill of sale say "as-is"?
That depends on your agreement with the seller. If the seller has promised to fix something or has made claims about the vehicle's condition, do not write "as-is." If you are buying the vehicle in its current condition with no promises, "as-is" protects the seller from later claims that something is broken.
What if I lose my bill of sale?
If you lose your copy, ask the seller for another signed copy. If you cannot reach the seller, a scanned or photographed copy may help if a dispute arises later. Going forward, keep your bill of sale with your title and registration in a safe, organized place.