A bill of sale is a written record that proves one person sold a car to another
When you buy or sell a car privately — not through a dealer — a bill of sale documents the transaction. It shows who owned the car, who owns it now, what was paid, and when the sale happened. The document protects both the buyer and seller by creating a paper trail that either party can show to the state's motor vehicle department, an insurance company, or a court if a dispute arises later.
A generic bill of sale is a blank template with standard sections that work for most private car sales. You fill in the specific details of your transaction. It is not a legal contract that creates obligations beyond the sale itself — it straightforward records that an exchange happened. Many states do not require a bill of sale by law, but having one is practical because it protects you if the seller later claims they did not actually sell the car, or if the buyer stops paying a loan they took out to buy it.
Key Takeaways
- A bill of sale should include the names and addresses of both the buyer and seller, the vehicle identification number (VIN), the sale price, and the date of sale.
- Both the buyer and seller must sign the bill of sale in front of a witness or notary public, depending on your state's requirements.
- You can find generic templates online or through your state's motor vehicle department, and filling one out takes about ten minutes.
- The buyer should keep one copy and the seller should keep one copy; some states also require a copy to be filed with the title transfer paperwork.
- A bill of sale does not transfer ownership by itself — the buyer still needs to register the car and update the title with the state.
What information must go on the bill of sale
The bill of sale needs enough detail that anyone reading it can understand exactly what was sold and who was involved. Start with the full legal names and street addresses of both the buyer and the seller. Use the names that appear on your driver's license or state ID, not nicknames or shortened versions.
Next, include the vehicle identification number (VIN), which is a 17-character code stamped into the car's frame and printed on the title. You can find it on the dashboard at the base of the windshield on the driver's side, or on the title document itself. Also write down the year, make, model, and color of the car, and the current mileage shown on the odometer. These details confirm you are talking about the same car.
Then record the sale price — the actual amount of money that changed hands, not what you think the car is worth. Write it in both numbers and words to prevent someone from adding a zero later. Include the date of the sale, the condition of the car (for example, "as-is" or "with warranty"), and whether any items are included or excluded (like floor mats, a spare tire, or a set of keys). If the buyer is taking over a loan, note that too.
Where to find a generic bill of sale template
Your state's motor vehicle department website usually has a free bill of sale form you can read and print. Search "[your state] motor vehicle department bill of sale" to find it. If your state does not provide one, you can find generic templates through legal document websites, your local library, or a quick online search. The template should have blank lines for the seller's name, buyer's name, VIN, sale price, and date.
Some states have specific wording or formatting requirements, so checking your state's version first is worth the few minutes it takes. If your state does not have an official form, any generic template will work as long as it includes the information listed above. You do not need a lawyer to fill out a bill of sale for a private car sale.
How to sign and witness the bill of sale
After you fill in all the blanks, both the buyer and seller must sign and date the document. Some states require the signatures to be notarized, meaning a notary public watches you sign and stamps the document with their seal. Other states only require a witness — any adult who is not related to either party and who watches both of you sign. Check your state's motor vehicle department website to see what your state requires.
If a notary is needed, you can find one at your bank, a UPS store, a library, or a notary service. The cost is usually between five and twenty dollars. If only a witness is needed, ask a friend, coworker, or family member of the other party to watch you both sign. The witness should print their name and address on the form and sign it too.
Make sure both the buyer and seller sign the same copy of the document. Do not sign separate copies and assume they are the same — sign one original together, then make photocopies for each party to keep.
What happens after you sign the bill of sale
Once signed, each party should keep a copy for their records. The buyer will need their copy when they go to the motor vehicle department to register the car and transfer the title into their name. The seller should keep their copy as proof that they no longer own the car, in case questions come up later about parking tickets, accidents, or other liability.
Some states require the bill of sale to be filed along with the title transfer paperwork, so check your state's requirements. If filing is required, the buyer usually handles it as part of the registration process. The bill of sale itself does not transfer ownership — it only documents that a sale happened. The title transfer, which is a separate process, is what actually changes who the state recognizes as the owner.
Why both buyer and seller need to keep a copy
The seller's copy protects them if the buyer later gets into an accident, racks up parking tickets, or fails to pay a loan they took out to buy the car. With a signed bill of sale, the seller can show that they sold the car on a specific date and are no longer responsible for it. This is especially important if the buyer does not register the car right away.
The buyer's copy protects them by proving they purchased the car legally and have the right to register it. If the seller later claims they did not actually sell the car, or if someone else shows up claiming ownership, the buyer can produce the signed bill of sale as evidence of the transaction. It also protects the buyer if the seller misrepresented the car's condition or history.
Common mistakes to avoid when filling out a bill of sale
Do not leave blanks. Every line should be filled in or marked "N/A" if it does not explore. An incomplete bill of sale can be challenged or rejected by the motor vehicle department. Use black or blue ink, not pencil, so the document cannot be easily altered.
Do not use informal language or abbreviations for the buyer's and seller's names. Write out full legal names exactly as they appear on identification. Do not estimate the mileage or leave it blank — write down what the odometer actually shows on the day of sale. Do not forget to include the sale price, even if the car was a gift; some states require you to write "gift" or "$0" in the price field if no money changed hands.
Do not sign the document before both parties have reviewed it and agreed that all information is correct. Do not assume you can fill it out later — sign it on the day of the sale while both parties are present. Do not forget to have it witnessed or notarized if your state requires it.
Frequently Asked Questions
Do I need a bill of sale if I am buying from a private seller?
Your state may not legally require one, but having a bill of sale is practical protection for both you and the seller. It proves the sale happened, shows what was paid, and protects you if the seller later disputes the transaction. Many insurance companies and motor vehicle departments also ask for it during registration.
What if the seller will not sign the bill of sale?
A seller who refuses to sign is a red flag. A legitimate seller should have no reason to avoid documenting the sale. If they refuse, do not complete the purchase — you have no proof you own the car, and the seller could later claim they still do. Walk away from the deal.
Can I use a bill of sale instead of a title transfer?
No. A bill of sale documents that a sale happened, but it does not transfer ownership to the state. You still need to file the title transfer paperwork with your motor vehicle department for the car to legally be registered in your name. The bill of sale is a supporting document that goes along with the title transfer.
What if I bought the car years ago and never got a bill of sale?
If you have the title in your name, you are the legal owner regardless of whether you have a bill of sale. However, if the original seller later disputes the sale or claims they did not actually sell it, a bill of sale would have protected you. Going forward, keep one for any car you buy or sell.
Does the bill of sale need to be notarized?
It depends on your state. Some states require notarization, others only require a witness, and some do not require either. Check your state's motor vehicle department website to find out what applies where you live. If notarization is required and you skip it, the motor vehicle department may reject your title transfer paperwork.