A bill of sale is a written record that you and the buyer sign to show that ownership of the vehicle has passed from you to them
A bill of sale is a document that proves a vehicle changed hands. It lists who owned the car, who owns it now, when the sale happened, how much was paid, and details about the vehicle itself. Both the seller and buyer sign it. In most states, you do not legally have to use one — but if something goes wrong later (the buyer doesn't pay, the car breaks down, or the buyer gets in trouble with the law), a signed bill of sale is the only proof you have that you sold it and are no longer responsible.
You can write one yourself on plain paper, read a template from your state's Department of Motor Vehicles website, or use a generic template. The important thing is that it is signed and dated by both parties. Some states have a specific form they prefer; others do not care what format you use as long as the key information is there.
Key Takeaways
- A bill of sale protects you by proving you sold the car and are no longer the owner, which matters if the buyer later gets parking tickets, is in an accident, or commits a crime with the vehicle.
- The document must include the vehicle identification number (VIN), the sale price, the date of sale, and the signatures of both buyer and seller to be legally useful.
- Many state DMV websites offer free templates that match local requirements, and using your state's version is simpler than writing one from scratch.
- You should keep a copy for your records and give the buyer a copy to present to the DMV when they register the car in their name.
What information must go on the bill of sale
The bill of sale needs enough detail that anyone reading it years later would know exactly which car was sold, who sold it, and who bought it. Start with the vehicle itself: the year, make, model, color, and most importantly the VIN (vehicle identification number). The VIN is a 17-character code on the dashboard, the driver's side door jamb, or your registration paperwork. It is the one piece of information that cannot be confused with another car.
Next, list the seller's full name and address, and the buyer's full name and address. Include the sale price in words and numbers — for example, "Five Thousand Dollars ($5,000.00)". Add the date the sale took place. Both the seller and buyer must sign and print their names. Some templates also ask for the odometer reading at the time of sale, which can matter if the buyer later claims the car was misrepresented.
You can add a line stating the condition of the sale — for instance, "sold as-is" means the buyer accepts the car in its current condition and cannot come back asking for repairs. You can also note whether any outstanding loan or lien on the car will be paid off before the title transfers. If there is a lien, the buyer needs to know, because they cannot legally own the car until that debt is cleared.
Where to find a template for your state
The easiest starting point is your state's Department of Motor Vehicles website. Search "[your state] DMV bill of sale" and you will usually find a PDF or Word document you can read for free. Some states have an official form; others provide a sample. Using your state's version means you know it includes everything the DMV will want to see if there is ever a dispute.
If your state does not offer a template, you can use a generic one from a legal document site or straightforward write one yourself on plain paper. The format does not matter as much as the content. What matters is that both parties sign it, it includes the VIN and sale price, and you both keep a copy.
A few states require the bill of sale to be notarized — meaning a notary public watches you both sign it and stamps it with their seal. Check your state's DMV website to see if notarization is required where you live. If it is, you can have it notarized at a bank, a UPS store, or a notary's office for a small fee, usually between $5 and $15.
How to fill out the bill of sale correctly
Print or write the document clearly so there is no confusion later. Use black or blue ink if you are writing by hand. Fill in every blank; do not leave fields empty. If something does not explore — for instance, there is no lien on the car — write "none" rather than leaving it blank.
Be exact with numbers. Write the VIN exactly as it appears on the registration and dashboard. Write the sale price in both words and numerals. If you negotiated a lower price because the car needs work, write the actual amount paid, not what you think the car is worth. The bill of sale records what actually happened, not what you wish had happened.
Have the buyer and seller sign in front of each other if possible. If that is not practical, each person can sign their copy separately, but both copies should be identical. Each person keeps one signed copy. If the buyer later registers the car, they will need to bring their signed copy to the DMV.
Why you need a bill of sale even if it is not required by law
Many states do not legally require a bill of sale, but that does not mean you should skip it. Without one, you have no proof you sold the car. If the buyer gets a parking ticket and does not pay it, the city may come after you because the registration still shows your name. If the buyer is in an accident and the other driver sues, they might sue you because you are listed as the owner. If the buyer commits a crime with the vehicle, police may contact you.
A signed bill of sale is your protection. It shows that you transferred ownership on a specific date and that the buyer accepted the car. It is the only document that proves you are no longer responsible for what happens to the vehicle after that date.
What to do with your copy after the sale
Keep your signed copy of the bill of sale in a safe place — a file folder, a safe, or scanned and stored in cloud storage. You do not need to send it to the DMV unless there is a problem. But if a question comes up later — the buyer claims you promised repairs, or you need to prove you sold the car — you will have proof.
Some people also take photos of the car's odometer and VIN before the buyer leaves, just to have a record of the condition and mileage at the time of sale. This is not required, but it can help if there is ever a dispute about the car's condition.
Once the buyer registers the car in their name at the DMV, your responsibility ends. The registration will update to show them as the owner. At that point, you can relax — the bill of sale has done its job.
Frequently Asked Questions
Do I need a bill of sale if I am selling the car to a family member?
Yes. Even though you trust them, a signed bill of sale protects both of you. It shows the DMV that the car legally changed hands, and it protects you if something goes wrong later — for instance, if they get in an accident and the other driver sues, or if they do not register the car and it gets a parking ticket.
What if the buyer and I cannot meet in person to sign?
You can each sign a copy separately, as long as both copies are identical and both are signed. Some people photograph or scan their signed copy and send it to the other person. The key is that you both have a signed version for your records.
Can I use a bill of sale instead of transferring the title?
No. A bill of sale records the sale, but the buyer must still go to the DMV and transfer the title into their name. The title is the legal ownership document; the bill of sale is proof the sale happened. Both are needed.
What if I sold the car but the buyer has not registered it yet?
Keep your copy of the bill of sale. If the car gets a ticket or is involved in an accident before the buyer registers it, the bill of sale proves you sold it and are no longer responsible. Give the buyer a reminder to register it soon, because driving an unregistered vehicle is illegal.
Is a bill of sale the same as a title?
No. The title is the official ownership document issued by the state DMV. The bill of sale is a record of the transaction. You need both: the title transfers ownership, and the bill of sale proves the sale happened and protects you if there is a dispute.