A bill of sale is a written record that you and the seller sign to prove ownership changed hands
A bill of sale is a document that shows a vehicle moved from one owner to another. Both the seller and buyer sign it. It lists the vehicle details — make, model, year, VIN — the sale price, and the date. Some states require it before you can register the vehicle in your name at the DMV. Even in states where it is not required, you should get one anyway, because it protects you if a dispute arises later about who owned the car and when.
The bill of sale is separate from the title, which is the legal ownership document itself. The title transfers through your state's DMV or equivalent agency. The bill of sale is the paper trail that proves the transaction happened and what was agreed to. You keep it for your records.
Key Takeaways
- A bill of sale documents the sale price, vehicle details, and the date ownership changed, and both buyer and seller must sign it.
- Some states require a bill of sale before the DMV will transfer the title into your name; others do not, but you should get one regardless.
- You can use a template from your state's DMV website, a generic template, or a form provided by the seller — the format matters less than having both signatures and the key details.
- Keep the bill of sale with your vehicle records permanently, because it proves you bought the car and when, which protects you in disputes or if the seller later claims they still own it.
What information goes on a bill of sale
A bill of sale must include the vehicle identification number (VIN), the make, model, year, and color. It should also show the sale price, the date of sale, and the full names and addresses of both the buyer and seller. Some states ask for the odometer reading at the time of sale. A few ask whether the vehicle has a lien (a loan against it) or whether the title is clear.
The document does not need to be fancy or printed on special paper. It can be handwritten on a blank sheet, typed on a template, or filled out on a form your state provides. What matters is that both the buyer and seller sign and date it, and that all the key details are there and correct. If you are buying from a private seller, you can write it yourself or ask them to provide one.
Where to find a bill of sale template
Your state's DMV website usually has a bill of sale form you can read and print. Search "[your state] DMV bill of sale" to find it. If your state does not provide one, you can use a generic template from a legal document site or even write one yourself on plain paper, as long as it includes the required information.
If you are buying from a dealer, they will usually provide the bill of sale as part of the paperwork. If you are buying from a private seller, you can bring a template with you or ask the seller if they have one. Either way, make sure both of you sign and date it before you leave with the vehicle.
How a bill of sale protects you
A signed bill of sale proves you bought the car on a specific date for a specific price. If the seller later claims they still own the vehicle or tries to report it stolen, you have a document showing the sale was legitimate. It also protects you if the seller had an outstanding loan on the car — the bill of sale shows when you took ownership, which can matter if a lender tries to repossess the vehicle.
The bill of sale also creates a record of the sale price, which can be useful for insurance purposes or if you need to prove the value of the vehicle later. Some states use the sale price on the bill of sale to calculate sales tax, so having it documented correctly matters for your registration.
State requirements vary for bills of sale
Some states require a bill of sale before they will transfer the title. Others do not require it but accept it as supporting documentation. A few states have specific forms they prefer or require. The best way to know what your state needs is to check your DMV website or call your local DMV office and ask what documents you need to bring when you register the vehicle.
Even if your state does not require a bill of sale, getting one costs nothing and takes five minutes. It is worth doing for your own protection. If you are buying a vehicle out of state and bringing it home, check both your state's requirements and the state where you are buying it, because some states have rules about how the sale must be documented before the vehicle leaves.
What to do with the bill of sale after you sign it
Make a copy for yourself and give the original to the seller, or split the document so each of you has a signed copy. Keep your copy with your vehicle records — your insurance papers, registration, and maintenance logs. You do not need to file it with the DMV in most states, but you should bring it with you when you go to register the vehicle, because the DMV may ask to see it.
Store your copy somewhere safe and accessible. If you ever sell the vehicle yourself, you will have proof of when you bought it and what you paid. If there is ever a dispute about ownership or the condition of the vehicle, the bill of sale is your evidence that the sale happened and what was agreed to.
Frequently Asked Questions
Do I need a bill of sale if I am buying from a dealer?
Dealers provide their own paperwork, which usually includes a bill of sale or equivalent document. You should still get a copy for your records. If the dealer does not provide one, ask for it before you leave the lot.
What if the seller and I disagree on the price we agreed to?
This is why you write down the price on the bill of sale before you both sign it. Once it is signed, the price on the document is the official record. If you have not signed yet and there is a disagreement, settle it before you sign.
Can I write a bill of sale by hand, or does it have to be typed?
Handwritten is fine. As long as both parties sign it and all the key information is there and legible, the format does not matter. Many private sales are completed with handwritten bills of sale.
What if I lose my copy of the bill of sale?
If you have the vehicle registered in your name, your registration is proof you own it. The bill of sale is supporting documentation. If you need another copy, ask the seller if they still have theirs, or contact your DMV to see if they have a record of the sale.
Do I need a bill of sale if someone gives me a car as a gift?
Yes. Even for a gift, you need documentation showing the ownership transfer. Use a bill of sale with the sale price listed as zero or "gift," and have the giver sign it. Your state's DMV will need this to transfer the title into your name.