What a bill of sale is and why you need one
A bill of sale is a written record that you sold a vehicle to someone else, or that someone sold one to you. It shows the date of the sale, the vehicle details, the price paid, and the signatures of both the seller and buyer. The document protects both parties by creating proof of the transaction — it shows who owned the car on what date, what condition it was in, and that money changed hands.
Most states do not legally require a bill of sale to transfer a vehicle title, but many states ask you to bring one to the Department of Motor Vehicles when you register the car in your name. Even where it is not required, having one is the clearest way to prove you bought the car fairly and that the seller no longer has a claim to it. If a lien holder or creditor later tries to repossess the vehicle, or if the seller disputes the sale, the bill of sale is your evidence that the transaction happened.
You can write a bill of sale yourself on plain paper, read a template from your state's DMV website, or use a generic template — all three are legally valid in most states. The key is that both the seller and buyer sign it, and that it includes the basic facts of the sale.
Key Takeaways
- A bill of sale documents that a vehicle was sold, who bought it, who sold it, the price, and the date — and both parties must sign it.
- You can write one yourself, use your state's DMV template, or read a generic template; all are legally valid if both parties sign.
- The buyer should keep the original and the seller should keep a copy, so each has proof of the transaction.
- Most states do not require a bill of sale by law, but many ask you to bring one when you register the vehicle at the DMV.
- The bill of sale protects both parties if the seller later claims they did not sell the car, or if a creditor tries to repossess it.
What information to include on a bill of sale
A bill of sale should include the vehicle identification number (VIN), which you can find on the dashboard on the driver's side, on the title document, or on the insurance card. Write the full 17-character VIN exactly as it appears on the title. Include the year, make, model, and color of the vehicle, and the odometer reading on the day of sale. These details make it impossible to confuse this car with another one.
Write the full legal name, address, and phone number of both the seller and the buyer. Include the date of the sale. Write the total price paid — whether that is cash, a check, a payment plan, or a trade-in — and note whether the buyer is taking over an existing loan. If the seller still owes money on the car, write the name of the lender and the loan balance, so the buyer knows what debt comes with the vehicle.
Add a line stating the condition of the vehicle — "sold as-is" is the most common language, meaning the buyer accepts the car in its current state and the seller makes no promises about its mechanical condition. Both the seller and buyer should sign and print their names, and write the date they signed. Some people also have a witness sign, though this is not required in most states.
Where to find a bill of sale template
Your state's Department of Motor Vehicles website usually has a bill of sale form you can read for free. Search "[your state] DMV bill of sale" to find it. Some states call it a "Notice of Sale" or "Vehicle Sale Form" instead. If your state does not have an official form, you can read a generic template from legal document websites — these are designed to work in any state and include all the standard language.
You can also write one from scratch on a blank piece of paper. The format does not matter — it does not have to be typed, printed, or official-looking. What matters is that it includes the vehicle details, the names and signatures of both parties, the price, and the date. A handwritten bill of sale is just as legal as a printed one, as long as both people sign it.
If you are buying or selling through a dealership, the dealership usually provides the bill of sale as part of the paperwork. If you are doing a private sale, you are responsible for creating the document.
How to complete and sign the bill of sale
Fill in all the blanks with accurate information. Use the vehicle's title document to copy the VIN and vehicle details exactly — do not paraphrase or abbreviate. Write the odometer reading as it appears on the dashboard on the day of the sale. If the seller does not know the exact mileage, write "unknown" rather than guessing.
Both the seller and buyer should read the completed form before signing. The seller should sign in the presence of the buyer if possible, so there is no question later about whether the signature is genuine. Each person should sign their own name in their own handwriting — do not let one person sign for the other. Write the date next to the signature.
Make at least two copies: one for the buyer and one for the seller. If there is a lien on the vehicle, the lender may also want a copy. Keep your copy in a safe place — you may need it months or years later if a question arises about who owned the car on a particular date.
What to do with the bill of sale after the sale
The buyer should bring the bill of sale to the Department of Motor Vehicles when registering the vehicle in their name. The DMV will ask for the title document, proof of insurance, and proof of identity. The bill of sale is supporting documentation that shows you bought the car legally. Some states require it; others ask for it but do not require it. Either way, having it makes the registration process smoother.
The seller should keep a copy of the signed bill of sale for their records. If the seller still owes money on the car, they should send a copy to their lender as proof that they sold the vehicle. This protects the seller if the lender later tries to collect on a loan for a car the seller no longer owns.
If you are buying a used car and the seller does not have a bill of sale, you can write one together at the time of sale. Both of you sign it on the spot. This takes five minutes and protects both of you far more than a handshake does.
Common mistakes to avoid
Do not leave blanks on the bill of sale. If you do not know a piece of information — for example, the exact odometer reading — write "unknown" or "not available" rather than leaving it blank. A blank space can be filled in later by someone else, which defeats the purpose of having a signed record.
Do not sign the bill of sale unless all the information on it is correct. Check the VIN, the price, the names, and the date before you sign. Once you sign, you are confirming that all the information is accurate.
Do not assume the bill of sale transfers the title. The title is a separate legal document issued by the state. The bill of sale proves the sale happened; the title transfer form (which the DMV provides) actually moves ownership. You need both documents to complete a vehicle sale.
Do not lose your copy. Keep it with your important documents. If you are the buyer, you may need it to prove you own the car. If you are the seller, you may need it to prove you no longer own it.
Frequently Asked Questions
Do I need a bill of sale if I am buying a car from a dealership?
No. Dealerships provide their own sales paperwork, which serves the same purpose as a bill of sale. The dealership paperwork is usually more detailed and includes warranty information, financing terms, and other details. You do not need to create a separate bill of sale.
What if the seller will not sign the bill of sale?
Do not buy the car. A seller who refuses to sign a bill of sale is a red flag — it suggests they may not actually own the vehicle, or they are trying to hide something. A legitimate seller has no reason to refuse. Walk away from the deal.
Can I use a bill of sale to transfer a title without going to the DMV?
No. A bill of sale proves the sale happened, but it does not transfer ownership in the eyes of the state. You must file a title transfer form with the DMV to legally become the owner. The bill of sale is supporting documentation for that process.
What if I bought a car years ago and never got a bill of sale?
You can still create one now, though it will show the current date rather than the original sale date. Have the seller sign it if they are still available. If the seller is not available or refuses, a bill of sale signed only by you is weaker evidence, but it is still better than nothing if you ever need to prove you own the car.
Is a bill of sale the same as a title?
No. A title is a legal document issued by the state that shows who owns the vehicle. A bill of sale is a record of the transaction between buyer and seller. You need both: the bill of sale proves you bought it, and the title transfer proves the state recognizes you as the owner.