A vehicle bill of sale is a written record that documents the transfer of ownership from one person to another

When you buy or sell a car, truck, or motorcycle, a bill of sale serves as proof of the transaction. It records who owned the vehicle, who owns it now, the price paid, the date of sale, and the vehicle's identification details. Most states do not legally require a bill of sale, but having one protects both the buyer and seller by creating a clear paper trail if questions arise later about ownership, condition, or payment.

A bill of sale is separate from the vehicle's title — the legal document issued by your state's Department of Motor Vehicles that proves ownership. The bill of sale is your receipt and record of the transaction itself. Many states ask you to bring a bill of sale when you register the vehicle in the new owner's name, and some insurance companies want to see one before they will insure the vehicle.

Key Takeaways

  • A bill of sale documents the sale price, date, vehicle details, and both parties' names and signatures, creating a record that protects both buyer and seller.
  • Most states do not require a bill of sale by law, but many ask to see one when you register the vehicle or transfer the title.
  • Free templates are available from your state's Department of Motor Vehicles website, the National Association of Secretaries of State, and general legal document sites.
  • The bill of sale should be signed by both the seller and buyer, and each party should keep a copy for their records.

What information goes on a bill of sale

A standard bill of sale includes the seller's full name and address, the buyer's full name and address, and the date of the sale. It lists the vehicle's year, make, model, color, and Vehicle Identification Number (VIN), which you can find on the dashboard or in the vehicle's paperwork. The sale price should be written out in both numbers and words to prevent disputes.

The form also typically includes a statement about the vehicle's condition — whether it is sold "as is" or with any warranties. Many templates include a line for the odometer reading at the time of sale. Both the seller and buyer must sign and date the document. Some states ask for the signature of a notary public, though most do not require notarization.

Where to find free bill of sale templates

Your state's Department of Motor Vehicles website often provides a free bill of sale form specific to your state's requirements. Search "[your state] DMV bill of sale" to find it. The National Association of Secretaries of State maintains links to each state's motor vehicle office, which can direct you to the right form.

General legal document sites such as LawDepot, Rocket Lawyer, and Nolo offer free bill of sale templates that you can customize with your information and print. These templates are designed to be valid across most states, though you should check your state's DMV website to confirm there are no state-specific rules that would make a different form preferable. Some banks and credit unions also provide free bill of sale forms to their members.

How to fill out and sign a 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. Use black or blue ink if you are handwriting the form. Write the sale price clearly, and include the odometer reading if your state's form asks for it. If the vehicle has any known defects or damage, note them in the "condition" section or add a line stating the vehicle is sold "as is."

Both the seller and buyer should sign and date the form in front of each other. If your state requires notarization, take the signed form to a notary public — many banks, credit unions, and UPS stores offer notary services for a small fee. Each party should keep a signed copy. The buyer will typically bring their copy when they register the vehicle and explore for a new title.

State-specific requirements and variations

Most states accept a straightforward bill of sale without notarization, but a few states have specific forms or requirements. Some states ask for the odometer reading; others do not. A handful of states require the form to be notarized, and a few ask for it to be filed with the DMV as part of the title transfer process. Checking your state's DMV website before you complete the form ensures you have the right document and avoid delays when you register the vehicle.

If you are selling a vehicle with a lien — meaning a bank or lender still has a claim on it — the bill of sale should note that the lender's permission is required before the title can transfer. The seller is responsible for paying off the lien before the buyer can legally own the vehicle free and clear.

What happens if you do not have a bill of sale

If you buy or sell a vehicle without a bill of sale, you still own or have purchased the vehicle, but you have no written proof of the transaction. This creates risk for both parties. A buyer without a bill of sale has no documented proof of the purchase price or date, which can complicate insurance claims or disputes about the vehicle's condition. A seller without a bill of sale has no proof they sold the vehicle and may face liability if the new owner gets into an accident or racks up parking tickets before registering it in their name.

Some states will still process a title transfer without a bill of sale if you have other proof of ownership, such as a previous title or registration. However, having a bill of sale makes the process faster and clearer for everyone involved.

Frequently Asked Questions

Do I need a bill of sale if I am trading in my vehicle at a dealership?

No. Dealerships handle their own paperwork and do not use a standard bill of sale. The dealership will provide you with documentation of the trade-in value and handle the title transfer on their end. Keep any paperwork they give you for your records.

Can I use a bill of sale if the vehicle still has a loan on it?

Yes, but the bill of sale should note that the lender's lien is still on the vehicle. The seller must pay off the loan before the title can transfer to the buyer's name. The bill of sale does not remove the lien — only the lender can do that once the loan is paid in full.

What if the buyer and seller disagree about the sale price after signing?

The signed bill of sale is a binding record of the agreed price. If a dispute arises, the bill of sale serves as evidence of what both parties agreed to on the date of sale. This is one reason it is important to make sure the price is correct before signing.

Does a bill of sale replace the vehicle title?

No. The bill of sale is a record of the sale transaction, while the title is the legal ownership document issued by your state. You will still need to transfer the title at your DMV to make the ownership change official. The bill of sale is often required as part of that process.