A car bill of sale is a written record that you and the buyer (or seller) both sign to prove the vehicle changed hands
The bill of sale documents what was sold, who sold it, who bought it, when the sale happened, and how much money changed hands. It protects both of you: the seller has proof they no longer own the car, and the buyer has proof of ownership if there's a dispute later. You don't need a lawyer to create one — a bill of sale can be as straightforward as a form you fill in yourself, and many states provide free templates online.
Most states don't legally require a bill of sale, but your state's Department of Motor Vehicles (DMV) or Secretary of State office may ask to see one when you register the vehicle. Even if your state doesn't require it, having one protects you in ways a verbal agreement never can. If the seller later claims they still own the car, or if the buyer tries to return it, the bill of sale is your proof of what actually happened.
Key Takeaways
- A bill of sale is a written agreement between buyer and seller that documents the vehicle sale, and both parties should keep a signed copy.
- Many state DMV websites offer free bill of sale templates you can read and print, often under "forms" or "vehicle registration" sections.
- The bill of sale should include the vehicle identification number (VIN), the sale price, the date of sale, and the printed names and signatures of both buyer and seller.
- If your state doesn't provide a template, you can use a general bill of sale form from a legal document website or create one yourself with the basic information listed above.
What information goes on a bill of sale
The bill of sale needs enough detail that someone reading it years later would know exactly which car was sold and when. 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 driver's side dashboard and on the title document — it's the only number that uniquely identifies that specific car.
Next, write the sale details: the date of the sale, the sale price in dollars, and the condition of the sale (for example, "as-is" if the buyer accepts the car with no warranty). Then add the names, addresses, and signatures of both the seller and the buyer. Some forms also ask for driver's license numbers or phone numbers — these aren't required, but they make the document harder to forge.
If the car has a loan against it, or if there are liens (claims by creditors), note that on the bill of sale too. The buyer needs to know they're taking on that debt, and the seller needs to show they disclosed it. If you're not sure whether there are liens, you can check the title document or contact your state's DMV.
Where to find free bill of sale templates
Your state's DMV or Secretary of State website usually has a free bill of sale form you can read. Search "[your state] DMV bill of sale" or "[your state] Secretary of State bill of sale" — most states keep these forms in a "forms" or "vehicle registration" section. Some states call it a "sales agreement" or "transfer of ownership" form instead. The form is usually a PDF you can print and fill in by hand, or fill in on your computer and then print.
If your state doesn't provide one, or if you can't find it, legal document websites like LawDepot, Rocket Lawyer, and Nolo offer free bill of sale templates. These are generic forms that work in most states. You fill in the blanks with your information, print it, sign it, and you're done. The free versions are usually sufficient — you don't need to pay for a premium version unless you want extra features like digital signatures.
Some banks and credit unions also provide bill of sale forms to their customers. If you financed the car through a bank, call and ask whether they have a template you can use.
How to fill in and sign the bill of sale
Print the form or open it on your computer. Fill in every blank with accurate information — don't leave fields empty, and don't guess at details like the VIN or sale price. If a field doesn't explore to your sale, write "N/A" so it's clear you didn't just skip it. Use black or blue ink if you're printing and writing by hand, because it photocopies better than pencil.
Once the form is complete, both the buyer and seller should read it carefully to make sure everything is correct. Then both of you sign and print your names. Some forms ask you to sign in front of a notary public — check your state's template to see if that's required. Most states don't require notarization for a bill of sale, but a few do, and notarization adds an extra layer of proof that the signatures are real.
Make at least two copies: one for the seller and one for the buyer. If you're financing the car, the lender may also want a copy. Keep your copy somewhere safe — a file folder, a safe deposit box, or a digital scan stored in cloud storage. The bill of sale is proof of the transaction, and you may need it years later if there's ever a question about who owned the car and when.
What happens after you sign the bill of sale
The bill of sale itself doesn't transfer the title — that happens when you register the vehicle with your state's DMV. The bill of sale is just the first step. The buyer will take the bill of sale, the title document, and any other paperwork the seller provides to the DMV to register the car in their name. The seller should keep their copy as proof they sold it and no longer own it.
Some states require the seller to notify the DMV that they've sold the vehicle, even if they don't have the title in hand. This protects the seller if the buyer never registers the car and it gets into an accident or is used in a crime — the DMV record shows the seller is no longer responsible. Check your state's DMV website to see whether you need to file a "notice of sale" or "release of liability" form.
When you might need the bill of sale later
If the buyer ever tries to return the car or claims the sale never happened, the bill of sale is your proof. If the car is involved in an accident or legal dispute years later, the bill of sale shows who owned it at what time. If you're selling a car that still has a loan on it and the buyer later claims you didn't disclose the loan, the bill of sale (if you noted the loan on it) proves you did.
The bill of sale also protects you if the car is stolen after the sale. Once you've sold it and the buyer has taken possession, you're no longer the owner — but without a bill of sale, the police might still list you as the registered owner and contact you about the theft. A bill of sale shows the DMV and law enforcement that you transferred ownership on a specific date.
Frequently Asked Questions
Do I have to notarize the bill of sale?
Most states don't require notarization, but a few do — check your state's DMV website or the template itself to see if it's required. Notarization adds cost (usually $10 to $25) but provides extra proof that the signatures are real. If your state doesn't require it, you can skip it.
What if I'm selling a car with a loan still on it?
Write on the bill of sale that the car has a loan and include the lender's name and the loan amount. The buyer needs to know they're taking on that debt. The lender may also need to sign off on the sale before the title transfers. Contact your lender to ask what paperwork they need.
Can I use a bill of sale instead of a title?
No. The bill of sale proves the sale happened, but the title is the legal ownership document. The buyer needs the title to register the car with the DMV. The seller should give the buyer the original title document along with the signed bill of sale.
What if I lost the bill of sale after I sold the car?
If you kept a copy, you can use that. If you didn't keep a copy, you can ask the buyer for theirs, or you can create a new one and have both parties sign it again. The DMV record of registration is also proof of ownership transfer, so you're not completely without documentation.
Can I write my own bill of sale instead of using a template?
Yes. Write down the vehicle details (year, make, model, VIN, color), the sale date, the sale price, and the names and signatures of both buyer and seller. It doesn't have to match any official form — as long as it has the basic information and both parties sign it, it's a valid bill of sale.