A bill of sale is a written record that you and the buyer sign to show that ownership of the car has passed from you to them

The bill of sale serves as proof of the transaction for both parties. It documents what was sold, who sold it, who bought it, the price paid, and the date of the sale. When you sign it, you are confirming that you no longer own the vehicle and that the buyer now does. The buyer signs it to confirm they purchased the car and accept its condition.

A bill of sale is not the same as a title or registration. The title is the legal document that proves ownership and is issued by your state's Department of Motor Vehicles (DMV) or equivalent agency. The bill of sale is a private record between you and the buyer that supports the title transfer process. Many states require you to submit a bill of sale to the DMV when you transfer the title, while others treat it as optional but strongly recommended.

You can write a bill of sale on a blank piece of paper, use a template from your state's DMV website, or purchase a pre-printed form from an office supply store. The format matters less than the content — what matters is that both parties sign it and keep a copy.

Key Takeaways

  • A bill of sale is a written agreement signed by both the seller and buyer that documents the sale of a car, including the price, date, and vehicle details.
  • Your state's DMV website usually provides a free bill of sale template specific to your state's requirements.
  • Both you and the buyer should keep a signed copy for your records, even if your state does not require you to file it with the DMV.
  • A bill of sale protects you by showing you no longer own the vehicle if it is later involved in an accident, parking violation, or other incident.

What information must go on a bill of sale

The bill of sale should include the date of the sale, the full names and addresses of both the seller and the buyer, and the vehicle identification number (VIN). You can find the VIN on the dashboard on the driver's side, on the title document, or on the vehicle registration card.

Include the year, make, model, and color of the car. Add the odometer reading at the time of sale. Write the sale price — the actual amount of money that changed hands, not an estimated value. If the buyer is assuming a loan or paying in installments, note that clearly. For example: "Buyer assumes existing loan of $5,000" or "Buyer pays $3,000 cash and $2,000 by check on [date]."

Add a statement about the condition of the vehicle. You can write "sold as-is" if the buyer is purchasing it in its current condition with no warranty from you. Alternatively, you can list any known defects or repairs that have been made. This protects you by showing the buyer knew about any problems before they signed.

Both you and the buyer should print your names clearly, sign and date the document, and include your driver's license numbers. Some states ask for the license plate number as well. Check your state's DMV website to see if there are specific fields or language required in your state.

Where to find your state's bill of sale form

Most state DMV websites provide a free bill of sale template that meets your state's requirements. Search "[your state] DMV bill of sale" to find it. The form is usually available as a PDF you can print and fill out by hand, or sometimes as a fillable form you can complete on your computer before printing.

If your state's DMV does not provide a form, you can use a generic bill of sale template from a legal document website or office supply company. The key is to include all the information listed above. A generic form will work in most states, though some states have specific wording or fields they prefer.

You do not need to pay for a bill of sale form. Free templates are available from your state DMV, and you can also find them through the American Automobile Association (AAA) if you are a member. Office supply stores sell pre-printed pads for a few dollars if you prefer a physical form.

How to complete and sign the bill of sale

Fill in all the blanks with accurate information. Use black or blue ink if you are writing by hand — avoid pencil, which can be erased. Print clearly so there is no confusion about names, numbers, or amounts. If you make a mistake, cross it out with a single line, write the correction above it, and have both parties initial the change. Do not use white-out or tape over errors.

Both you and the buyer should sign the document in front of each other if possible. Some states do not require a notary public to witness the signatures, but having one present adds an extra layer of protection. A notary can be found at most banks, UPS stores, or your county clerk's office for a small fee, usually between $5 and $15.

Make at least two copies — one for you and one for the buyer. If you are filing the bill of sale with your state's DMV as part of the title transfer, make an additional copy for that purpose. Keep your copy in a safe place for your records.

When to submit the bill of sale to your state DMV

Some states require you to submit the bill of sale to the DMV when you transfer the title. Others do not require it but accept it as supporting documentation. A few states do not use bills of sale at all and rely only on the title document itself.

Check your state's DMV website or call their customer service line to learn whether you must file the bill of sale. If you must file it, the DMV will tell you where to send it, what form to use, and whether there is a filing fee. In most cases, you submit it along with the title transfer process.

Even if your state does not require a bill of sale, you should keep one anyway. It serves as proof that you sold the vehicle on a specific date and to a specific person. This protects you if the buyer later fails to register the car in their name and the vehicle is involved in an accident or receives parking tickets in your name.

Why a bill of sale protects you as the seller

Once you sign a bill of sale, you have a dated, signed record showing that you transferred ownership to the buyer. If the buyer does not register the car in their name right away and the vehicle is involved in an accident, you have proof that you are no longer responsible. If parking tickets or traffic violations are issued in your name, you can show the bill of sale to dispute them.

A bill of sale also protects you if a dispute arises about the sale price, the condition of the vehicle, or whether certain repairs were promised. The document shows what was agreed to at the time of sale. If the buyer later claims you promised to fix something or that the price was different, you have a written record of what actually happened.

Without a bill of sale, you have no proof of when or to whom you sold the car. This can create problems if the buyer does not transfer the title promptly and the vehicle is later involved in a legal or financial matter. The bill of sale is inexpensive insurance against these scenarios.

What happens after both parties sign

After you and the buyer sign the bill of sale, the buyer is responsible for registering the vehicle in their name with the DMV. This usually must happen within a set number of days — often 10 to 30 days, depending on your state. The buyer will need the bill of sale, the title, proof of insurance, and proof of identity to complete the registration.

You should transfer the title to the buyer's name as soon as possible. Some states allow the seller to sign the back of the title and give it to the buyer, who then takes it to the DMV. Other states require both the seller and buyer to appear together at the DMV office. Check your state's requirements.

Once the buyer registers the vehicle in their name, you are no longer the registered owner and have no further responsibility for the car. Remove your license plates if your state requires it, and cancel your insurance on that vehicle. Keep your copy of the bill of sale and the title transfer receipt for your records.

Frequently Asked Questions

Can I sell a car without a bill of sale?

Technically, yes — the title transfer alone can complete the sale in most states. However, selling without a bill of sale leaves you without proof of when you sold the car or to whom. If the buyer does not register it promptly and the vehicle is later involved in an accident or receives tickets, you may still be held responsible. A bill of sale costs nothing and takes minutes to complete.

What if the buyer does not register the car in their name?

This is a common problem. If the buyer delays registration and the car is involved in an accident or receives parking violations, those incidents may still be reported under your name. Your bill of sale proves you sold it, but you may need to contact the DMV directly to remove yourself as the registered owner. Some states allow you to file a "release of liability" form with the DMV to protect yourself further.

Do I need a notary to sign a bill of sale?

Most states do not require a notary for a bill of sale to be valid. However, having a notary witness both signatures adds credibility to the document and can help if a dispute arises later. A notary costs $5 to $15 and is available at banks, UPS stores, and county clerk offices.

What if I sold the car for less than I owe on the loan?

If you still owe money on the car, you must pay off the loan before transferring the title to the buyer. The lender holds the title as collateral. You can note on the bill of sale that the buyer is assuming the loan, but the title cannot transfer until the loan is paid in full. Work with your lender to arrange payoff at the time of sale.

Can I use a bill of sale if I am selling the car to a family member?

Yes. Even though it is a family transaction, a bill of sale protects both of you by documenting the sale price, date, and condition of the vehicle. It also protects the family member by showing they now own the car and are responsible for registering it in their name.