A bill of sale is a written record that you and the buyer (or seller) sign to prove who owns a car and when the ownership changed hands
A bill of sale doesn't have to be fancy or come from a lawyer. It's a straightforward document that lists the car, the price paid, and the names and signatures of both people involved in the sale. Most states don't require a specific form — you can write one yourself on plain paper, use a template, or buy a pre-printed form from an office supply store. What matters is that both parties sign it and keep a copy.
The bill of sale protects both the buyer and the seller. For the buyer, it proves they paid for the car and own it now. For the seller, it proves they handed over the car and are no longer responsible for it. When you take the bill of sale to the DMV (or your state's equivalent), along with the title, you transfer ownership officially. Without a bill of sale, disputes can happen later — a seller might claim they never sold the car, or a buyer might claim they paid less than they actually did.
Key Takeaways
- A bill of sale should include the car's year, make, model, and VIN (vehicle identification number), plus the sale price and the date of the sale.
- Both the seller and buyer must sign the bill of sale, and each should keep a copy for their records.
- You can write a bill of sale yourself, use a free template online, or buy a pre-printed form — your state doesn't require a specific format.
- The bill of sale goes to the DMV along with the title when you register the car in the new owner's name.
What information goes on a bill of sale
Start with the basics about the car itself. Write down the year, make, model, and color. Then add the Vehicle Identification Number (VIN), which you'll find on the driver's side of the dashboard or on the title document. Include the odometer reading on the day of sale — this protects both parties by documenting the car's condition at that moment.
Next, write the sale price. Be specific: "$5,000" not "five thousand dollars." If the buyer is paying in cash, write "cash." If they're paying by check or another method, note that too. Some sales include a trade-in or partial payment in goods — if so, describe it clearly. For example: "Buyer pays $3,000 cash and trades in 2015 Honda Civic valued at $2,000."
Add the date of the sale and the names and addresses of both the seller and the buyer. Include their phone numbers or email addresses if you want — this makes it easier to track down either party later if questions come up. Some people also note whether the car is being sold "as-is" (meaning the buyer accepts it in its current condition) or if the seller is making any repairs or guarantees.
A real example of a bill of sale
Here's what a straightforward, handwritten bill of sale might look like:
BILL OF SALE
Date: March 15, 2024
Seller: John Martinez, 456 Oak Street, Portland, OR 97201, (503) 555-0147
Buyer: Sarah Chen, 789 Maple Avenue, Portland, OR 97202, (503) 555-0198
Vehicle: 2018 Toyota Camry, Silver
VIN: 4T1BF1AK5CU123456
Odometer Reading: 87,432 miles
Sale Price: $12,500 (cash)
Condition: Sold as-is. Buyer has inspected the vehicle and accepts it in its current condition.
Seller Signature: _________________________ Date: _________
Buyer Signature: _________________________ Date: _________
This example covers everything essential. It's clear, it's dated, and both parties can sign it right there. You don't need legal language or fancy formatting. A bill of sale this straightforward is valid in all 50 states.
Where to find a bill of sale template
If you don't want to write one from scratch, templates are available free online. Search "bill of sale template" plus your state name — many state DMV websites offer a downloadable PDF you can fill in and print. Websites like LegalZoom, Rocket Lawyer, and even some car-selling sites like Kelley Blue Book have free templates too.
Office supply stores like Staples and Office Depot sell pre-printed bill of sale forms for a few dollars. These are already formatted with blanks for you to fill in, and they're designed to meet your state's requirements. Some car dealerships will give you a bill of sale form if you ask, though you're not required to use theirs.
No matter which route you choose, the key is to fill in all the information clearly, have both parties sign and date it, and make copies before either person leaves. If you're buying or selling privately (not through a dealer), keeping that signed copy is your proof of the transaction.
What happens after you sign the bill of sale
Once both parties have signed, the seller should give the original or a certified copy to the buyer. The buyer then takes the bill of sale, along with the title (also called the certificate of ownership), to the DMV or your state's vehicle registration office. The buyer will also need to bring proof of insurance and pay a registration fee.
The DMV uses the bill of sale to confirm the sale price and update their records. In some states, the sale price is used to calculate sales tax on the vehicle. The buyer's name gets added to the title, and the seller's name is removed. This process usually takes a few days to a few weeks, depending on how busy your local DMV is.
The seller should keep a copy of the signed bill of sale for their records, even after the sale is complete. This proves they no longer own the car and are not responsible for any accidents, parking tickets, or other issues that happen after the sale date.
Common details people forget to include
The VIN is the most commonly missed piece. People sometimes skip it because they think the title has it, but writing it on the bill of sale too prevents confusion and protects both parties. The odometer reading is also important — it documents the car's mileage at the time of sale and can matter for warranty claims or disputes later.
Some sellers forget to note whether the car is sold "as-is" or with any guarantees. If you're the seller and you're not making any promises about the car's condition, write that down. If you're the buyer and the seller promised to fix something, get that in writing on the bill of sale too — don't rely on a verbal promise.
Both parties should also initial any changes or corrections made to the bill of sale before signing. If you cross something out and write in a correction, both the buyer and seller should put their initials next to it. This prevents someone from claiming later that the document was altered without their knowledge.
Frequently Asked Questions
Do I need a notary to sign a bill of sale?
No, a notary is not required in most states. Both the buyer and seller can straightforward sign the bill of sale in front of each other. However, some states recommend or prefer a notarized signature for extra protection. Check your state's DMV website to see if notarization is recommended where you live. If you want it notarized, banks and UPS stores offer notary services for a small fee.
What if I lose my copy of the bill of sale after I sell the car?
If you're the seller, contact the buyer and ask for a copy. If the buyer won't provide one, you can request a record from your state's DMV showing that the title was transferred to the new owner. This proves the sale happened and that you're no longer responsible for the vehicle. Keep this DMV record in your files.
Can I use a bill of sale from a different state?
Yes. While some states have their own recommended forms, any bill of sale that includes the required information (vehicle details, VIN, sale price, date, and signatures) will work in any state. The format doesn't matter — what matters is that the information is there and both parties have signed it.
Should I include the car's title number on the bill of sale?
It's helpful but not required. The title number is on your certificate of ownership. Including it on the bill of sale makes it easier for the DMV to match the documents, but the VIN is what really matters. If you include the title number, make sure it's correct.
What if the buyer and seller can't meet in person to sign?
Both parties can sign separate copies and exchange them by mail or email. Each person signs their copy, and both keep a signed version. When the buyer takes the bill of sale to the DMV, they can bring either the original or a copy — most DMVs accept either one. The key is that both signatures are on the document, even if they weren't signed at the same time or place.