What a bill of sale does and when 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 of the sale, the vehicle details, the price paid, and the signatures of both the seller and buyer. The document protects both parties by creating proof of the transaction — it shows who owned the car on what date, and that money changed hands.

You need a bill of sale whenever you buy or sell a car privately, meaning directly to another person rather than through a dealership. Some states require it by law before you can transfer the title at the DMV. Other states don't legally require it, but having one anyway protects you if a dispute arises later — for example, if the buyer claims the car had damage you didn't disclose, or if the seller tries to say they never received payment.

A bill of sale is different from a title. The title is the official government document that proves ownership; the bill of sale is your record of the transaction itself. You'll typically need both documents to complete a sale.

Key Takeaways

  • A bill of sale records that a car was sold, who bought and sold it, the price, and the date — and both parties should sign and keep a copy.
  • Some states require a bill of sale before you can transfer the title at the DMV, while others don't legally require it but it's still useful as proof.
  • You can use a template from your state's DMV website, a general template, or write one yourself as long as it includes the vehicle identification number, odometer reading, sale price, and both signatures.
  • The seller should keep a copy in case questions arise about when they no longer owned the car, and the buyer should keep a copy as proof of purchase.

Information to include in a bill of sale

Every bill of sale should contain the same core information, regardless of the state or template you use. Start with the date of the sale at the top. Then list the seller's full name and address, and the buyer's full name and address.

Next, describe the vehicle itself. Include the year, make, model, and color. Most importantly, include the Vehicle Identification Number (VIN), which appears on the dashboard on the driver's side and also on the title document. Include the current odometer reading — this protects the buyer by documenting the mileage at the time of sale. Add the license plate number if you have it.

Write the sale price in both numbers and words — for example, "$5,500 (five thousand five hundred dollars)." This prevents disputes over whether the price was $5,500 or $55,000. Note whether any trade-in or other items were part of the deal. At the bottom, both the seller and buyer should sign and print their names, and include the date they signed.

Where to find a bill of sale template

The easiest starting point is your state's DMV website. Many states provide an official bill of sale form that meets their legal requirements. Search "[your state] DMV bill of sale" to find it. If your state doesn't offer one, you can use a general template from a legal document site or your state bar association.

You can also write one yourself from scratch using the information in the section above. There is no magic language required — as long as it includes the vehicle details, the sale price, both signatures, and the date, it will serve its purpose. Some people straightforward type the information into a Word document, print it, sign it, and keep copies.

If you're buying or selling a car with a loan still attached — meaning the bank still holds the title — the process is more complex. The lender must release the title before the sale can be completed. In that case, contact the lender to ask what documents they require, and include that information in your bill of sale or as a separate note.

How to fill out and sign the bill of sale

Print two copies of the bill of sale — one for the seller and one for the buyer. Fill in all the blanks with accurate information. Take your time with the VIN and odometer reading, since these are the details most likely to matter later.

Both the seller and buyer should sign and print their names on both copies. Some states require the signatures to be notarized, meaning a notary public witnesses the signing and stamps the document. Check your state's DMV website to see if notarization is required. If it is, you and the buyer will need to go to a notary together — banks, UPS stores, and some libraries offer notary services for a small fee.

After signing, each party keeps one copy. The buyer will need their copy when they go to the DMV to transfer the title into their name. The seller should keep their copy as proof that they no longer owned the vehicle as of that date.

What happens after you sign the bill of sale

For the buyer, the next step is to take the bill of sale and the title to your state's DMV or equivalent agency to transfer ownership. You'll also need to pay a transfer fee, which varies by state. The DMV will issue a new title in your name. This process typically takes one to four weeks, depending on whether you do it in person or by mail.

For the seller, signing the bill of sale is usually the end of your responsibility — but don't throw away your copy. Keep it for at least a few years. If the buyer gets into an accident or a traffic violation occurs after the sale, the police or courts may contact you if the title transfer was delayed. Your bill of sale proves you were no longer the owner on that date.

If the buyer doesn't transfer the title promptly, some states allow the seller to file a notice with the DMV stating that the vehicle was sold. This protects you from liability if the car is used in a crime or accumulates unpaid parking tickets. Ask your DMV whether this option exists in your state.

Common mistakes to avoid

The most common error is leaving the odometer reading blank or writing it incorrectly. Federal law requires the odometer reading to be recorded at the time of sale. If you leave it blank, the buyer may have trouble registering the car, and you may face legal questions later.

Another mistake is using a nickname or informal name instead of the legal name that appears on your driver's license. The DMV will reject the title transfer if the names don't match exactly. Use your full legal name, including middle initial if you have one.

Don't sign the bill of sale unless you're actually ready to hand over the car and receive payment. Once both parties sign, the sale is considered complete in the eyes of the law, even if the title hasn't been transferred yet. If you change your mind after signing, you may have a legal problem.

Finally, don't assume the buyer will transfer the title right away. Some buyers delay for weeks or months. As the seller, you're still technically liable for the vehicle until the title is transferred. If you're concerned about delay, follow up with the buyer or file a notice of sale with your DMV.

Bill of sale for different vehicle types

The basic bill of sale works for cars, trucks, and SUVs. However, if you're selling a motorcycle, RV, or boat, check your state's DMV website — some states have separate forms for these vehicle types, and the information required may differ slightly.

For motorcycles, the process is usually identical to cars, but some states require additional safety inspection documentation. For RVs and boats, the lender requirements are often more complex, and you may need to work with a title company to handle the transaction. Ask your state's DMV or the lender what documents are needed before you write the bill of sale.

Frequently Asked Questions

Do I have to notarize the bill of sale?

It depends on your state. Some states require notarization before the DMV will transfer the title; others don't require it at all. Check your state's DMV website or call them to ask. If notarization is required, you and the buyer must both be present when a notary signs and stamps the document.

What if I lose my copy of the bill of sale after I sell the car?

If you're the seller and you lose your copy, ask the buyer for another copy. If the buyer won't provide one, you can request a copy of the title transfer from your DMV — this will show the date the title was transferred and prove you were no longer the owner. Keep this documentation in case questions arise later.

Can I sell a car without a bill of sale?

In some states, no — the DMV won't transfer the title without one. In other states, it's not legally required, but it's still a good idea to protect yourself. Even if your state doesn't require it, having a signed bill of sale proves the sale occurred and protects both you and the buyer if a dispute arises later.

What if the buyer doesn't pay the full amount on the day of sale?

Note the payment terms on the bill of sale — for example, "$5,500 due in full on [date]" or "$2,750 due today, $2,750 due on [date]." Don't sign the bill of sale or hand over the keys until you've received the agreed-upon payment. If the buyer needs time to pay, wait to sign until the money is in your account.

Do I need a bill of sale if I'm trading in my car at a dealership?

No. Dealerships handle their own paperwork and don't use a standard bill of sale. The dealership will provide you with documents showing the trade-in value and the terms of the sale. You only need a bill of sale when you're selling directly to another person.