What a bill of sale does 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 names the buyer, the seller, the vehicle, and the price paid. When you sign it and the other person signs it, you both have proof of the transaction — proof that money changed hands and ownership transferred on a specific date.
You need one because it protects both of you. If you are selling, it shows you no longer own the car and are not responsible for what happens to it after the sale. If you are buying, it proves you paid for the vehicle and have a right to register it in your name. Without it, a dispute over who owns the car, or who owes money for repairs or tickets, becomes your word against theirs.
Many states do not require a bill of sale by law, but your state's Department of Motor Vehicles (DMV) or equivalent agency may ask for one when you register the car in your name. Even if your state does not require it, having one is the safer choice.
Key Takeaways
- A bill of sale is a signed document proving who bought and sold a car, when, and for how much.
- You can read a free template from your state's DMV website or from general legal document sites, then fill in the blanks with the car details and both signatures.
- The document should include the seller's name and address, the buyer's name and address, the vehicle identification number (VIN), the sale price, and the date of sale.
- Both the buyer and seller must sign the bill of sale, and you should each keep a copy for your records.
Where to find a free bill of sale template
Your state's DMV website often has a free bill of sale form you can read and print. Search "[your state] DMV bill of sale" to find it. Some states call it a "Notice of Sale" or "Vehicle Transfer Form" instead. If your state's DMV does not offer one, you can use a general template from a legal document website.
Common sources for free templates include state bar associations, legal aid organizations, and general document sites. The template should match your state's rules — some states have specific wording or fields they prefer. If you cannot find a state-specific version, a generic bill of sale will work in most places, but check your DMV website first to see if they have a preferred format.
You do not need to pay for a bill of sale. Paid services exist, but they straightforward fill in a template for you. You can do that yourself in a few minutes.
What information to include on the bill of sale
The bill of sale must have the seller's full name and address, the buyer's full name and address, and the date of the sale. It must also have the vehicle identification number (VIN), which you can find on the driver's side of the dashboard or on the title document. Include the year, make, model, and color of the car, and the mileage at the time of sale.
Write the sale price clearly — the exact dollar amount paid. If the sale price is zero (for example, if you are giving the car to a family member), write "zero dollars" or "$0" so there is no question that money did not change hands. Some states require you to note whether the sale price is the actual price or a reported price for tax purposes; check your state's DMV website for this detail.
Add any other details that matter: whether the car is sold "as-is" with no warranty, whether the seller is responsible for any outstanding loans or liens, or whether the buyer is taking the car with known mechanical problems. These details protect both of you by making clear what each person is responsible for after the sale.
How to sign and complete 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 pen or type the information before printing. Both the seller and the buyer must sign and date the document in front of each other, or at minimum, each must sign their own copy and exchange it with the other person.
Some states require the signatures to be notarized, meaning a notary public watches you sign and stamps the document to confirm it. Check your state's DMV website to see if notarization is required. If it is, you can find notaries at banks, UPS stores, or online notary services; fees vary but are usually between $5 and $25.
Once both people have signed, each should keep their copy in a safe place. The buyer will need their copy when registering the car with the DMV. The seller should keep their copy as proof they no longer own the vehicle.
What happens after you sign the bill of sale
If you are the buyer, take your signed copy of the bill of sale to your state's DMV along with the title document (if the seller has it) and proof of insurance. The DMV will use the bill of sale to register the car in your name and issue you a new title. Bring your driver's license and proof of residency as well; requirements vary by state.
If you are the seller, your job is mostly done once both of you have signed. Keep your copy for your records. If the car had an outstanding loan, contact your lender to let them know the car has been sold; they may need to release the lien on the title before the buyer can register it. If the car is still registered in your name, contact your DMV to remove yourself from the registration so you do not receive tickets or bills for the vehicle after the sale.
The bill of sale itself does not transfer ownership — the title document does. But the bill of sale proves when and to whom you sold the car, which is what protects you if something goes wrong later.
When a bill of sale is not enough
If the car has an outstanding loan or a lien (a claim by a bank or creditor), the bill of sale alone will not transfer ownership to the buyer. The lender must release the lien first, which usually happens when the loan is paid off. The seller should contact their lender before the sale to find out what paperwork is needed to clear the lien.
If the title is lost or the car was never titled (for example, a very old vehicle or one brought from another country), you may need more than a bill of sale to register it. Contact your state's DMV to ask what documents are required in your situation. Some states have a process for obtaining a new title or a bonded title when the original is missing.
If you are buying a car from a private seller and the seller cannot produce a title, do not complete the sale without checking with your DMV first. A bill of sale does not solve a missing title problem.
Frequently Asked Questions
Do I need a bill of sale if I am buying a car from a dealer?
No. Dealers provide their own paperwork, which serves the same purpose as a bill of sale. You will receive a sales contract and other documents that prove the purchase. A bill of sale is mainly for private sales between individuals.
What if the seller will not sign the bill of sale?
Do not buy the car. A seller who refuses to sign a bill of sale is a red flag — it suggests they may not actually own the vehicle, or they are trying to hide something. A legitimate seller has no reason to refuse.
Can I use a bill of sale instead of a title?
No. A bill of sale proves you bought the car, but only the title document transfers legal ownership. You need both. If the seller does not have the title, contact your state's DMV to find out what steps are required before you can register the car in your name.
How long should I keep my copy of the bill of sale?
Keep it as long as you own the car, and for several years after you sell it. If a dispute arises later — for example, about when you sold it or what condition it was in — your copy of the signed bill of sale is your proof. Most people keep it for at least three to five years.
Is a text message or email agreement the same as a bill of sale?
It is not ideal. A signed, printed bill of sale is stronger proof because it is a formal document both people intended to create. A text or email can be disputed more easily. If you have only a text agreement, print it out and ask the other person to sign a formal bill of sale to protect both of you.