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

A bill of sale is a written record that you sold a car to someone else, or that someone sold a car to you. It shows the date, the vehicle details, the price, and the signatures of both the buyer and seller. When you buy or sell a car privately — not through a dealership — a bill of sale protects both of you by creating proof of the transaction.

Without a bill of sale, there is no official record that the ownership changed hands. If the new owner gets into an accident or racks up parking tickets before they register the car in their name, you could still be held responsible because the title still shows your name. A bill of sale gives you a dated document showing you are no longer the owner.

Most states do not require a bill of sale by law, but many require it when you register the vehicle at the DMV. Even in states where it is optional, creating one is a straightforward way to protect yourself and make the transaction clear to both parties.

Key Takeaways

  • A bill of sale is a written record of a car sale that shows the date, vehicle details, price, and signatures of both buyer and seller.
  • You can create a bill of sale using a printable template, by hand on plain paper, or through your state's DMV website — all three are legally valid.
  • The buyer and seller must both sign the bill of sale, and each should keep a copy for their records.
  • When you register the vehicle, bring the bill of sale to the DMV along with the title and other required documents.
  • A bill of sale protects the seller by proving they no longer own the car and protects the buyer by documenting the purchase price and condition.

Where to find a printable bill of sale template

You can read a bill of sale template from your state's DMV website, which is the most reliable source because it will match your state's requirements. Search "[your state] DMV bill of sale" to find the official form. Many states offer the template as a PDF you can print and fill in by hand, or as a Word document you can type into before printing.

If your state does not provide an official template, you can use a general bill of sale template from a legal document website. These templates are designed to work in most states and include all the standard fields: seller name and address, buyer name and address, vehicle year/make/model, VIN, odometer reading, sale price, date, and signature lines. You do not need to use an official state form — a bill of sale written on plain paper and signed by both parties is legally valid in most places.

Some people write a bill of sale from scratch on notebook paper with all the key information included. As long as both the buyer and seller sign and date it, and it clearly states what was sold and for how much, it will hold up if there is ever a dispute.

What information to include on the bill of sale

Start with the basics about the people involved: the full name, address, and phone number of the seller, and the full name, address, and phone number of the buyer. Then add the vehicle information: the year, make, model, color, and VIN (Vehicle Identification Number, found on the dashboard or in the title). Include the odometer reading on the day of sale — this documents the mileage at the time of transfer.

Write the sale price in both numbers and words to avoid confusion — for example, "$5,500 (five thousand five hundred dollars)". If the sale includes any conditions — such as "sold as-is" or "buyer responsible for all repairs after sale" — write those clearly. Add the date of the sale and leave space for both the seller and buyer to sign and print their names.

Some templates also ask whether the vehicle has a lien (a loan against it). If the car still has money owed on it, that should be noted, because the buyer needs to know the seller will have to pay off the loan before the title transfers cleanly. If you are unsure what to include, look at your state's official template — it will show you the exact fields that matter in your area.

How to fill out and sign the bill of sale

Print the template or write out the bill of sale by hand. Fill in all the blanks with accurate information — the VIN, odometer reading, and sale price are especially important because they are the details most likely to matter later. Use black or blue pen if you are writing by hand, and write clearly so there is no confusion about what was agreed to.

Both the seller and the buyer must sign and date the document. Some states require the signatures to be notarized (witnessed and certified by a notary public), but most do not. Check your state's DMV website to see whether notarization is required where you live. If it is, you can get a document notarized at a bank, a UPS store, a library, or a notary's office — the cost is usually between $5 and $15.

Make at least two copies: one for the seller and one for the buyer. If the document is notarized, make copies after notarization so both parties have the certified version. Each person should keep their copy in a safe place, because you may need it when you register the vehicle or if there is ever a question about who owned the car on a particular date.

When to use the bill of sale at the DMV

When the buyer registers the vehicle in their name, they will bring the bill of sale to the DMV along with the title, proof of insurance, and proof of residency. The DMV uses the bill of sale to confirm that the sale took place and to update their records to show the new owner. The seller should also keep their copy for their records — it proves they transferred ownership on a specific date.

If you are the seller, you may also need to file a release of liability or a notice of sale with your state's DMV, depending on where you live. This is a separate form that tells the state you no longer own the vehicle, so you will not be held responsible for anything that happens to it after the sale. Some states require this form; others do not. Check your state's DMV website or call to find out whether you need to file it.

The bill of sale is not the same as the title. The title is the official ownership document issued by the state, and it must be signed over by the seller and submitted by the buyer. The bill of sale is a supporting document that proves the transaction happened and shows the terms of the sale.

What to do if you lose the bill of sale

If you have already registered the vehicle and you lose your copy of the bill of sale, you can request a copy from the other party. If they no longer have it, you can contact your state's DMV — they may have a record of the sale in their system, especially if the bill of sale was submitted when the vehicle was registered.

If you need a bill of sale for a vehicle you sold years ago and you cannot find the original, you can create a new one based on your records, have both parties sign it, and note on it that it is a recreation of the original sale. This is less ideal than having the original, but it is better than having nothing if you ever need to prove when you sold the car.

Frequently Asked Questions

Can I write a bill of sale on a blank piece of paper instead of using a template?

Yes. A bill of sale written on plain paper is legally valid as long as it includes the seller's name and address, the buyer's name and address, the vehicle details (year, make, model, VIN), the sale price, the date, and both signatures. A template is convenient because it reminds you what to include, but it is not required.

Do I need to get the bill of sale notarized?

Most states do not require notarization for a bill of sale. However, a few states do, and some lenders require it even if the state does not. Check your state's DMV website or call your local DMV office to find out whether notarization is required where you live. If it is, you can have it notarized at a bank, library, or notary's office for a small fee.

What if the buyer and I disagree about the sale price later?

The bill of sale is your proof of what was agreed to. If you both signed a bill of sale that stated the price as $5,000, that is the documented price. This is why it is important to make sure the price is correct before anyone signs. If there is a dispute, the signed bill of sale is the evidence of what actually happened.

Do I need a bill of sale if I am selling the car to a family member?

Yes. Even if you are selling to a family member, a bill of sale protects both of you by creating a clear record of the transaction. It shows the date the ownership changed, the price (even if it was a gift or a reduced price), and the vehicle condition. This prevents confusion later and protects you from liability if something happens to the car after the sale.

Can the buyer register the car without a bill of sale?

This depends on your state. Some states require a bill of sale when you register a vehicle; others do not. However, even if your state does not require it, having one is a good idea because it creates proof of the sale. Check your state's DMV website to see what documents are required for registration in your area.