What a car bill of sale is and why you need one

A bill of sale is a written record that documents the transfer of a vehicle from one owner to another. It serves as proof that you bought or sold a car, truck, or motorcycle, and it protects both the buyer and seller by creating a paper trail of the transaction. When you buy a used car from a private seller, the bill of sale becomes your evidence of purchase and ownership until you register the vehicle with your state's motor vehicle department.

Many states do not require a bill of sale by law, but having one is still essential. Without it, you have no documented proof of what you paid, when the sale occurred, or what condition the vehicle was in at handoff. If a dispute arises later — about the sale price, mechanical problems, or ownership — a bill of sale is your only protection. It also protects the seller by showing they no longer own the vehicle and are not responsible for parking tickets, accidents, or other liability that occurs after the sale date.

Key Takeaways

  • A bill of sale documents the transfer of vehicle ownership and protects both buyer and seller by creating a dated record of the transaction.
  • The document should include the vehicle identification number (VIN), sale price, date of sale, and the full names and addresses of both parties.
  • You can use a template from your state's motor vehicle department website, a generic template, or create your own as long as all required information is present.
  • Both the buyer and seller must sign and date the bill of sale, and each should keep a copy for their records.
  • The bill of sale is separate from the title transfer and registration — you will still need to complete those steps with your state to legally own the vehicle.

What information must go on a bill of sale

A bill of sale needs specific details about the vehicle and the people involved in the sale. Start with the vehicle itself: the year, make, model, color, and most importantly, the Vehicle Identification Number (VIN). The VIN is a 17-character code stamped on the dashboard or door frame and appears on the title and registration. Write it exactly as it appears on those documents.

Next, include the sale price — the actual amount of money changing hands. Write out the number and the dollar amount (for example, "Five hundred dollars ($500.00"). Add the date of the sale in month-day-year format. Then list the full legal names, addresses, and phone numbers of both the buyer and the seller. Some templates also ask for driver's license numbers; this is optional but adds another layer of verification.

You should also note the vehicle's condition at the time of sale — whether it is being sold "as-is" with no warranty, or whether the seller is making any promises about its mechanical condition. If there are known problems (a dent, a check-engine light, transmission issues), write them down. This protects the buyer by documenting what they knew before purchase and protects the seller by showing they disclosed problems upfront.

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 requirements. Search "[your state] motor vehicle department bill of sale" or "[your state] DMV bill of sale template" to find it. Some states have an official form; others provide a sample you can follow. Downloading the official version is the safest route because it includes any language your state prefers.

If your state does not offer a template, you can use a generic one from a reputable source. Many legal document websites and the American Automobile Association (AAA) provide free, fillable templates that work in most states. You can also write your own bill of sale from scratch — it does not have to be fancy or use legal language. As long as it includes the vehicle details, the sale price, the date, and the signatures of both parties, it is valid.

Print the bill of sale on plain white paper. You do not need notarization or witness signatures in most states, though some states recommend or require notarization. Check your state's motor vehicle department website to see if notarization is required where you live.

How to fill out and sign the bill of sale

Fill in all blanks with black or blue pen, using print handwriting or typing. Write clearly so there is no confusion about numbers or names. 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 erasers, because they make the document look altered.

Once the form is complete, both the buyer and seller must sign and date it. The buyer signs to confirm they are purchasing the vehicle and accept its condition. The seller signs to confirm they are transferring ownership and will no longer be responsible for the vehicle. Each person should sign in front of the other if possible, so both can verify the signatures are genuine. Make at least two copies — one for the buyer, one for the seller. If notarization is required in your state, both parties should sign in front of a notary public, who will then stamp and sign the document.

When to use the bill of sale in the registration process

After you buy the car, you have a limited window to register it with your state. The timeframe varies by state — some give you 10 days, others give you 30 days. During this time, bring the bill of sale to your state's motor vehicle department along with the vehicle's title (signed over by the seller), proof of insurance, and a completed registration process.

The bill of sale serves as supporting documentation. It shows the motor vehicle department when you bought the car, how much you paid, and in what condition you received it. Some states ask you to submit a copy with your registration paperwork; others just want to see it if there is a question about ownership or the sale. Keep your copy in a safe place — you may need it later if you sell the car, file an insurance claim, or dispute a mechanical problem that arose shortly after purchase.

What happens if you buy or sell without a bill of sale

If you buy a used car without a bill of sale, you still own it once you register it with the state. However, you have no written proof of the purchase price, the sale date, or the vehicle's condition at handoff. If the car breaks down a week later and the seller claims they told you about the problem, you have no documentation to prove otherwise. If you need to file an insurance claim or take the seller to small claims court, a bill of sale would have strengthened your case.

If you sell a car without a bill of sale, you have no proof you transferred ownership. If the buyer gets into an accident or racks up parking tickets before registering the vehicle, you could be held liable because the title still shows your name. Some states allow you to file a release of liability with the motor vehicle department to protect yourself, but a bill of sale is clearer and more direct evidence that you no longer own the vehicle.

Frequently Asked Questions

Do I need a bill of sale if I am buying from a dealer?

No. Dealers provide a sales contract or purchase agreement that serves the same purpose. That document includes the vehicle details, price, and both signatures. Keep it with your registration paperwork. A separate bill of sale is only necessary for private sales between individuals.

What if the seller will not sign the bill of sale?

Do not complete the purchase. A seller who refuses to sign is a red flag — they may be hiding a lien on the vehicle, a salvage title, or ownership disputes. Walk away and find another car. A legitimate private sale always includes a signed bill of sale.

Can I use a bill of sale from online if I live in a different state?

Generic templates work in most states, but your state may have specific wording or requirements. Check your state's motor vehicle department website first. If they offer an official template, use that. If not, a generic template is fine as long as it includes the VIN, sale price, date, and both signatures.

Is a bill of sale the same as a title?

No. The title is the legal document that proves ownership and is issued by your state. The bill of sale is a receipt showing the transaction occurred. You need both — the seller signs over the title to you, and you both sign the bill of sale as proof of the exchange.

What if I lost my copy of the bill of sale after I bought the car?

Contact the seller and ask for another copy. If they will not provide one, you can still register and own the car using the title alone. However, you lose the documentation of the purchase price and condition, which could matter if you later dispute a mechanical problem or need proof of when you bought it.