What a Bill of Sale Does When You Sell Your Car

A bill of sale is a written record that you and the buyer sign to show the car has changed hands

A bill of sale is a document that proves you sold the car and the buyer now owns it. It lists the vehicle details, the sale price, the date, and both signatures. In most states, you do not legally need one to complete a private car sale — the title transfer alone is enough — but having one protects both you and the buyer by creating a paper trail of who owned the car when.

The bill of sale matters most if something goes wrong after the sale. If the buyer gets a ticket in the car before they register it in their name, or if the car is involved in an accident, the bill of sale proves you are no longer responsible. For the buyer, it documents what they paid and confirms the condition of the car at the moment of purchase.

You can write a bill of sale yourself on plain paper, use a template, or buy a pre-printed form from an office supply store. Some states provide official templates on their Department of Motor Vehicles website, though using the state version is optional, not required.

Key Takeaways

A bill of sale is a signed record showing the car, the price, and the date it changed hands — it protects both seller and buyer if disputes arise later.
Most states do not require a bill of sale by law, but having one is the safest practice for a private sale.
You can write one yourself, use a free template, or buy a form; the state does not dictate the format as long as both parties sign it.
The bill of sale should include the vehicle identification number (VIN), odometer reading, sale price, and signatures from both you and the buyer.
Keep a copy for your records even after you sign the title over, because it proves when you stopped being responsible for the vehicle.

What information goes on a bill of sale

A bill of sale should include the car's vehicle identification number (VIN), which you can find on the dashboard or the title. Add the make, model, year, and color so there is no confusion about which car is being sold. Include the odometer reading on the day of sale — this protects the buyer by documenting the mileage and protects you by showing the car's condition at handoff.

Write the sale price in full, even if you are selling the car for a dollar or as a gift. Some states use the sale price to calculate taxes, so leaving it blank or writing "gift" can create problems when the buyer tries to register the car. Add the date of the sale and the names and addresses of both you and the buyer.

Both you and the buyer should sign and print your names. Some people add a line for the buyer to confirm the car's condition — for example, "Buyer acknowledges the vehicle is sold as-is" — which can prevent later claims that you promised repairs or hid damage. This is optional but useful if the car has known issues.

When you need a bill of sale most

A bill of sale becomes critical if the buyer registers the car late or gets a ticket before the registration is complete. Without it, you might receive notices or bills addressed to you, and you would have to prove you no longer owned the vehicle. The bill of sale is that proof.

It also matters if the car is involved in an accident or damaged after you sold it but before the buyer registered it. Insurance companies and police reports may try to hold you liable. The bill of sale, with its date and both signatures, shows the buyer owned the car when the damage occurred.

For the buyer, the bill of sale protects them if you later claim the sale never happened or if someone else tries to claim ownership. It is their record that they bought the car fairly and at a specific price.

How to write a bill of sale yourself

Start with a straightforward heading: "Bill of Sale" or "Vehicle Bill of Sale." Below that, write the date. Then add a line like "I, [your name], sell to [buyer's name] the following vehicle:" and list the VIN, make, model, year, and color.

Add a line for the sale price: "Sale price: $[amount]." Include the odometer reading: "Odometer reading at time of sale: [miles]." Add a line for the condition if you want: "Vehicle sold as-is, no warranties." Then write "Buyer's signature: _____ Date: _____" and "Seller's signature: _____ Date: _____" and both of you sign and print your names.

You do not need fancy language or legal jargon. Courts recognize straightforward, handwritten bills of sale as long as both parties sign them and the key information is there. Make two copies — one for you and one for the buyer — before anyone signs.

Using a template or state form

Many states post free bill of sale templates on their Department of Motor Vehicles website. Search "[your state] DMV bill of sale" to find it. These templates include all the fields you need and are formatted in a way the state recognizes, which can be helpful if you ever need to show it to a government office.

Office supply stores like Staples sell pre-printed bill of sale forms for a few dollars. These are generic and work in any state. Online, you can find free templates from legal document sites — just make sure the template is for your state, since some states have specific wording requirements.

Whether you use a template or write your own, the document only works if both you and the buyer sign it. An unsigned bill of sale has no legal weight. Keep your copy in a safe place — you may need it years later if a question arises about when you sold the car.

What happens after you both sign

After you and the buyer sign the bill of sale, you still need to transfer the title. The title is the official ownership document, and transferring it is what actually makes the sale legal in the eyes of the state. The bill of sale is a supporting document that proves the transaction happened.

You will sign the back of the title (or fill out a transfer form, depending on your state) and give it to the buyer. The buyer then takes the title and bill of sale to the Department of Motor Vehicles to register the car in their name. You should also notify your insurance company that you no longer own the vehicle, so they can cancel your policy.

Keep your copy of the bill of sale even after the title is transferred. If the buyer does not register the car right away and you receive a ticket or notice in the mail, you can show the bill of sale to prove you sold it. Some states also ask you to file a "notice of sale" with the DMV to officially remove yourself from liability — check your state's rules.

Protecting yourself as the seller

The bill of sale protects you by creating a dated record of the sale. Make sure the buyer's name and address are correct and legible. If the buyer later claims they never bought the car, or if the car is used in a crime, the bill of sale with their signature is your proof that you transferred ownership.

Do not hand over the keys or let the buyer take the car until both of you have signed the bill of sale. Some sellers photograph the signed document with both parties present, which adds another layer of proof. Keep your copy somewhere safe — a file folder, a safe, or a scanned copy in email — so you can find it if you need it.

If the buyer is paying in cash, count the money before you sign and write the exact amount on the bill of sale. If they are paying by check, you may want to wait until the check clears before handing over the keys, though this is a separate agreement between you and the buyer and does not go on the bill of sale itself.

Frequently Asked Questions

Do I have to use my state's official bill of sale form?

No. Most states do not require a specific form. A handwritten bill of sale you write yourself is legal as long as both parties sign it and it includes the VIN, sale price, and date. Using your state's official form can be helpful because it is already formatted correctly, but it is not mandatory.

What if the buyer does not register the car right away and I get a ticket?

Show the bill of sale to the court or the agency that issued the ticket. The bill of sale proves you no longer owned the car on that date. Some states also let you file a "notice of sale" with the DMV to officially remove yourself from liability before the buyer registers the vehicle.

Can I sell a car without a bill of sale?

Yes, in most states you can sell a car with just a title transfer. However, a bill of sale protects both you and the buyer by creating a paper trail. Without it, disputes about when the sale happened or what condition the car was in become harder to resolve.

Should I write "as-is" on the bill of sale?

Writing "sold as-is" protects you by showing the buyer accepted the car in its current condition. It does not prevent the buyer from suing you if you actively hid major damage, but it does prevent them from claiming you promised repairs you never made.

What if I sell the car to a dealer instead of a private buyer?

Dealers handle their own paperwork and usually do not ask for a bill of sale. They will give you a receipt or document showing the sale. Keep that receipt as your proof of sale, since it serves the same purpose as a bill of sale.

This guide is for general information only and is not medical, financial, legal, or other professional advice. For decisions specific to your situation, consult a qualified professional. See our Editorial Policy.