What a vehicle bill of sale is and why you need one
A vehicle bill of sale is a written record that documents the transfer of ownership from one person to another. It serves as proof that a sale took place, who bought the vehicle, who sold it, when the transaction happened, and for how much money. When you buy or sell a car, truck, motorcycle, or other motor vehicle privately (not through a dealer), a bill of sale protects both parties by creating a paper trail.
The bill of sale is not the same as the vehicle title or registration. The title is the legal document that proves ownership and is issued by your state's Department of Motor Vehicles or equivalent agency. The bill of sale is a separate record you create yourself or read as a template. Many states do not require a bill of sale by law, but having one is practical protection for the buyer and seller alike. If a dispute arises later—about the condition of the vehicle, the price, or who actually owned it—the bill of sale is your evidence.
You may also need a bill of sale if you are trading in a vehicle, donating it to a charity, or transferring it to a family member. Some states require it for title transfer; others do not. Checking your state's DMV website will tell you whether it is mandatory where you live.
Key Takeaways
- A bill of sale is a written record of a vehicle transaction that you create yourself; it is separate from the title and registration.
- The bill of sale should include the names and addresses of both buyer and seller, the vehicle identification number (VIN), the sale price, the date, and signatures from both parties.
- You can read a generic template from your state's DMV website, use a free template from a legal resource site, or write one yourself in plain language.
- Both the buyer and seller should keep a signed copy for their records, and the buyer will typically submit a copy to the DMV when registering the vehicle in their name.
What information must go on a bill of sale
A bill of sale needs to include enough detail that anyone reading it later—a DMV clerk, a court, or an insurance company—can understand exactly what was sold and by whom. Start with the names and addresses of both the seller and the buyer. Use legal names as they appear on identification, not nicknames.
Next, include the vehicle details. The most important piece is the Vehicle Identification Number (VIN), a 17-character code unique to that vehicle. You can find the VIN on the dashboard on the driver's side, on the vehicle title, or on the registration card. Also write down the year, make, model, and color of the vehicle. If the vehicle has a license plate number at the time of sale, include that too.
Then add the sale price—the actual amount of money that changed hands. Write it both as a number and spelled out in words (for example, "$5,500" and "Five Thousand Five Hundred Dollars"). Include the date of the sale. Finally, both the buyer and seller must sign and date the bill of sale. Some templates ask for the odometer reading at the time of sale, which is useful information but not always required.
Where to find a bill of sale template
You do not have to buy a bill of sale form. Your state's DMV website often provides a free template specific to your state's requirements. Search "[Your State] DMV bill of sale" to find it. If your state does not offer one, you can read a generic template from legal resource websites like LegalZoom, Rocket Lawyer, or the National Association of Secretaries of State.
A generic template works in most states because the basic information is the same everywhere: buyer, seller, vehicle details, price, date, and signatures. However, some states have specific wording or additional fields they prefer. Using your state's official template, if available, removes any doubt about whether you have included everything required.
You can also write a bill of sale yourself without a template. Use plain language and include all the information listed in the previous section. The document does not need to be fancy or use legal jargon. A handwritten bill of sale signed by both parties is legally valid in most states, though a typed version is clearer and easier to read later.
How to fill out and sign the bill of sale
Print or write out the bill of sale form. Fill in the seller's full name and address, then the buyer's full name and address. Write the vehicle's VIN, year, make, model, and color. Enter the sale price in both number and word form. Write the date of the sale.
Both the buyer and seller must sign the document in front of each other if possible. Some states require the signatures to be notarized (witnessed and certified by a notary public), though most do not. Check your state's DMV website to see if notarization is required. If it is, you can visit a bank, library, or notary service to have the signatures witnessed. This usually costs between $5 and $15.
Make at least two copies of the signed bill of sale—one for the seller and one for the buyer. If you had it notarized, make copies of the notarized version. Keep your copy in a safe place. The buyer will need to bring their copy to the DMV when they register the vehicle in their name.
What happens after you sign the bill of sale
Once both parties have signed, the bill of sale is complete. The buyer should keep it with their other vehicle documents. When the buyer goes to the DMV to register the vehicle and transfer the title into their name, they will bring the bill of sale along with the original title, proof of insurance, and a completed registration process.
The seller should also keep a copy. If the vehicle is later involved in an accident or legal dispute, the bill of sale proves when and to whom you sold it. It also protects you if the new owner fails to register the vehicle or gets into trouble with the law—the bill of sale shows the vehicle is no longer your responsibility.
If you are the buyer, do not delay in registering the vehicle. Most states require registration within a certain number of days after purchase (often 10 to 30 days, depending on the state). Driving an unregistered vehicle is illegal, even if you have a bill of sale. The bill of sale is proof of purchase, not proof of registration.
Special situations: donations, trades, and family transfers
If you are donating a vehicle to a charity, you still need a bill of sale or donation form. Many charities provide their own form, which serves the same purpose. Fill it out with your name, the charity's name, the vehicle details, and the date. You will need this for your tax records if you plan to claim a charitable deduction.
If you are trading in a vehicle at a dealership, the dealer will handle the paperwork and bill of sale. You do not need to create one yourself. However, if you are selling a vehicle to a private buyer in exchange for another vehicle (a trade between two individuals), you should create a separate bill of sale for each vehicle so both parties have clear records.
If you are transferring a vehicle to a family member as a gift, some states still require a bill of sale even though no money is exchanged. Write the sale price as "$0" or "Gift" and have both parties sign. This creates a legal record of the transfer and makes the title change at the DMV smoother.
Common mistakes to avoid
The most common mistake is leaving out the VIN or writing it incorrectly. Double-check the VIN against the vehicle title or dashboard before you sign. A wrong VIN can cause delays or confusion when the buyer tries to register the vehicle.
Another mistake is not keeping a copy for yourself. Always make copies before anyone leaves with the signed document. If a dispute arises later, you will need proof of what was agreed to.
Do not leave the sale price blank or write "cash" without a number. The DMV and insurance companies need to know the actual amount. If you are uncomfortable stating the true price, remember that the bill of sale is a private document between you and the buyer—it is not public record in most states.
Finally, do not assume the bill of sale transfers the title. It does not. The buyer must still take the bill of sale to the DMV, submit it with the original title and other required documents, and complete the title transfer process. The bill of sale is the first step, not the final one.
Frequently Asked Questions
Do I have to use an official form, or can I write my own bill of sale?
You can write your own bill of sale in plain language as long as it includes the seller's name and address, buyer's name and address, vehicle VIN, year, make, model, sale price, date, and signatures from both parties. A handwritten bill of sale is legally valid in most states. Using an official template from your state's DMV is safer because it ensures you have included everything required, but it is not always mandatory.
What if I lose my copy of the bill of sale after I sell the vehicle?
If you are the seller and lose your copy, contact the buyer and ask for a copy. If the buyer refuses or you cannot reach them, you can request a copy from the DMV once the vehicle is registered in the buyer's name. The registration record will show the transfer date. Keep the copy you receive in a safe place.
Can I sell a vehicle without a bill of sale?
In most states, a bill of sale is not legally required, but it is strongly recommended. Without one, you have no written proof of the sale if a dispute arises. If the buyer does not register the vehicle or gets into an accident, you could face liability issues. Some states do require a bill of sale for title transfer, so check your state's DMV website before proceeding without one.
Do both the buyer and seller need to sign in front of a notary?
Most states do not require notarization of a bill of sale. However, some states or specific situations (such as a donation) may require it. Check your state's DMV website or call the DMV directly to confirm. If notarization is required, you can visit a bank, library, or notary service to have the signatures witnessed.
What should I do if the buyer never registers the vehicle?
If you are the seller and the buyer does not register the vehicle, you are not responsible for what happens to it after the sale. The bill of sale proves you transferred ownership on a specific date. However, if you are concerned about liability, you can contact your state's DMV and ask about filing a notice of sale, which officially removes you from ownership records. Some states have this option built into the registration system.