A bill of sale is a written record that you and the buyer sign to prove the car changed hands
When you sell a car, a bill of sale is a document that shows the buyer paid you money and you transferred ownership to them. It lists the car's details, the sale price, the date, and both signatures. You keep one copy, the buyer keeps one copy, and you may need to file a third copy with your state's motor vehicle department.
The bill of sale protects both of you. It proves to the buyer that you owned the car and had the right to sell it. It proves to you that the buyer paid the agreed price and accepted the car in its current condition. If a problem arises later — the buyer claims the car was damaged, or you claim they never paid — the bill of sale is your evidence of what actually happened and when.
Many states do not require a bill of sale by law, but your state's motor vehicle department may ask for one when the buyer registers the car in their name. Even if your state does not require it, creating one is a smart practice that takes about ten minutes.
Key Takeaways
- A bill of sale is a signed record showing the car's details, the price paid, and the date of sale, and protects both seller and buyer if a dispute arises later.
- Some states require a bill of sale to transfer the title; others do not, but the motor vehicle department may still request one during registration.
- You can use a template from your state's motor vehicle website, a generic template, or create your own as long as it includes the car's details, price, date, and both signatures.
- The buyer should inspect the car and test-drive it before you both sign, because the bill of sale usually states the car is sold "as-is" and the buyer accepts it in that condition.
What information goes on a bill of sale
A bill of sale should include the car's year, make, model, and vehicle identification number (VIN). The VIN is a 17-character code stamped on the driver's side dashboard and also printed on your title document. Include the car's current mileage, the sale price in dollars, and the date of the sale.
Write both your full name and address and the buyer's full name and address. Add a line for both of you to sign and print your names. Many people also add a line stating the car is sold "as-is," meaning the buyer accepts it with any existing damage or mechanical issues and cannot come back later claiming you misrepresented its condition.
You do not need fancy language. A straightforward statement like "I, [your name], sell this vehicle to [buyer's name] for $[amount] on [date]" is legally valid. The point is that both parties agreed to the terms and signed to prove it.
Where to find a bill of sale template
Your state's motor vehicle department website usually offers a free bill of sale template designed for your state's rules. Search "[your state] bill of sale" or "[your state] motor vehicle department" to find it. Some states call it a "notice of sale" or "vehicle sale form" instead.
If your state does not provide one, you can use a generic template from a legal document website or even write one by hand. The template does not have to be official or printed on special paper. What matters is that it contains the required information and both signatures.
Some car buyers and sellers use the back of the title document itself to write the sale details and sign. This works if your state allows it, but check your title first — some states have specific spaces for this, and others do not.
When to sign the bill of sale
Sign the bill of sale at the moment of sale, ideally after the buyer has inspected the car and you have agreed on the final price. Both of you should sign in front of each other so there is no question about when the sale occurred or who agreed to what.
If you are selling to someone you know well, you might sign before the buyer takes the car. If you are selling to a stranger, some sellers prefer to sign only after the buyer has had a mechanic inspect the car or after the test drive, to make sure the buyer is serious and satisfied with the car's condition.
Make at least two copies — one for you and one for the buyer. If your state requires you to file a copy with the motor vehicle department, make a third copy for that purpose. Keep your copy in a safe place for at least a few years in case questions arise later.
How the bill of sale connects to the title transfer
The bill of sale and the title are two different documents. The title is the legal proof of ownership issued by your state; the bill of sale is your record of the transaction. You sign the back of the title to transfer ownership to the buyer, and you sign the bill of sale to document the sale itself.
The buyer will take both documents to the motor vehicle department to register the car in their name. The department will check that the title is signed correctly and may ask to see the bill of sale as proof of the sale price and date. Some states use the bill of sale to calculate sales tax or to verify that the sale was legitimate.
If you lose the title before you sell the car, you will need to request a replacement from your motor vehicle department before you can transfer it to the buyer. This usually takes one to two weeks and costs a small fee.
What "as-is" means and why it matters
When a bill of sale says the car is sold "as-is," it means the buyer accepts the car in its current condition, with all its existing problems, and cannot sue you later for repairs or defects they discover after taking it home. This protects you from liability if the transmission fails a week after the sale or if the buyer finds rust underneath.
However, "as-is" does not protect you if you knowingly hid a major problem or lied about the car's history. If you told the buyer the engine was fine and you knew it was failing, or if you rolled back the odometer, the buyer may still have legal grounds to pursue you. Be honest about what you know about the car's condition.
Before you both sign, the buyer should have a chance to inspect the car, take it for a test drive, and ask questions. Once they sign an "as-is" bill of sale, they have accepted the car and its condition. This is why many buyers want a pre-purchase inspection by a mechanic — it gives them confidence before they sign.
Keeping records after the sale
After the sale, keep your copy of the signed bill of sale and a copy of the signed title for at least three to five years. These documents prove you sold the car and transferred ownership, which protects you if the buyer later claims you still own it or if there is a dispute over the sale price.
If the buyer does not register the car right away, you may receive a bill or notice from your state saying you still owe registration fees or taxes on the vehicle. Having a signed bill of sale and title transfer proves you no longer own it and can help you resolve this quickly. Some states allow you to file a "notice of sale" with the motor vehicle department to officially remove yourself from ownership even before the buyer registers it.
If you sold the car to a private buyer and they later get into an accident or rack up parking tickets, you are not responsible — but only if you have proof you sold it. The bill of sale and signed title are that proof.
Frequently Asked Questions
Do I have to notarize the bill of sale?
Most states do not require notarization for a bill of sale, and many buyers and sellers skip it. However, notarizing adds an extra layer of proof that both signatures are genuine, which can be useful if a dispute arises years later. If you want to notarize, take both copies to a notary public (usually available at banks, UPS stores, or libraries) and both you and the buyer must be present. There is usually a small fee per signature.
What if the buyer wants to pay me in installments instead of all at once?
You can note the payment terms on the bill of sale — for example, "$5,000 due on [date], $5,000 due on [date]." However, many sellers do not transfer the title until all payments are received, because once the title is signed over, you have no legal claim to the car if the buyer stops paying. Discuss this with the buyer before you sign and decide what protects you best.
Can I sell a car without a bill of sale?
In some states, you can transfer a car using only the signed title, with no separate bill of sale. However, having a bill of sale is still wise because it documents the sale price and date, which protects both of you. Check your state's motor vehicle website to see if a bill of sale is required or recommended.
What if I sold the car but the buyer never registered it in their name?
If weeks or months pass and the buyer has not registered the car, you may still receive bills or notices addressed to you. Contact your state's motor vehicle department and provide a copy of the signed bill of sale and title transfer to show you no longer own it. Some states allow you to file a "notice of sale" form to officially remove yourself from the registration. If the buyer never registers and the car is later involved in an accident or crime, the bill of sale is your proof that you sold it.