A bill of sale is a written record that you and the buyer (or seller) sign to document the sale of a car

A bill of sale is a legal document that proves ownership has transferred from one person to another. It records the vehicle details, the sale price, the date, and the signatures of both parties. Most states do not require a bill of sale by law, but it protects both the buyer and seller by creating a paper trail if disputes arise later — such as disagreements over the price paid, the condition of the car, or who owned it on a specific date.

The bill of sale is separate from the title document. The title is the official ownership record held by your state's motor vehicle department. The bill of sale is a private agreement between you and the other party. You keep it for your records; you do not file it with the state. However, some states do ask you to bring a bill of sale when you register the vehicle or transfer the title, so it serves as supporting evidence of the transaction.

Creating a bill of sale takes about 10 minutes and costs nothing. You can write one by hand, type one yourself using a template, or buy a pre-printed form from an office supply store. The format matters less than the content — as long as the document includes the required information and both parties sign it, it will hold up if you need it.

Key Takeaways

  • A bill of sale documents the transfer of car ownership and protects both buyer and seller by recording the price, date, and vehicle details in writing.
  • Most states do not require a bill of sale by law, but some ask you to bring one when you register the vehicle or transfer the title at the motor vehicle department.
  • You can handwrite, type, or print a bill of sale using a template — the format is flexible as long as it includes the vehicle identification number, sale price, date, and both signatures.
  • Both the buyer and seller should keep a signed copy for their records, and the document should be completed before or at the moment money and keys change hands.

What information must go on the bill of sale

The bill of sale should include the vehicle identification number (VIN), which appears on the dashboard near the windshield and on the title document. Include the year, make, model, and color of the car. Write down the odometer reading at the time of sale — this prevents disputes later about whether the seller disclosed the true mileage.

Record the sale price in both numbers and words (for example, "$5,000" and "Five Thousand Dollars"). This prevents someone from later claiming a different amount was agreed to. Include the date of the sale, the full names and addresses of both the buyer and the seller, and their signatures. Some people also add the condition of the car (for example, "sold as-is" or "with a known transmission issue") to avoid later claims that the seller hid defects.

If the car has a lien — meaning a bank or lender still owns part of it — note that on the bill of sale. Write something like "Subject to existing lien held by [Lender Name]." This tells the buyer that the seller does not have full ownership yet and that the lender must be paid off before the title can transfer.

Step-by-step process for completing a bill of sale

Step 1: Get a template or blank form. Search online for "bill of sale template" or "bill of sale form" for your state — some states have a specific format they prefer, though it is not always required. You can also type one yourself or write it by hand. Office supply stores sell pre-printed bill of sale pads.

Step 2: Fill in the vehicle information. Write or type the VIN, year, make, model, color, and odometer reading. Double-check the VIN against the title document to make sure it is correct.

Step 3: Record the sale details. Write the sale price in numbers and words, the date of the sale, and the full names and addresses of both parties. If the car is being sold "as-is" or has known issues, note that now.

Step 4: Both parties sign and date. The buyer and seller should sign the document in front of each other. Some people have a witness or notary sign as well, though this is not required in most states. Each party should receive a signed copy.

Step 5: Keep it with your records. Store the bill of sale with your other car documents. If you are the buyer, keep it until you sell the car or scrap it. If you are the seller, keep it for at least a few years in case questions arise about the sale.

When you need to show the bill of sale to the state

Most states do not require you to file the bill of sale with the motor vehicle department. However, many states ask you to bring it when you register the vehicle or transfer the title. The bill of sale serves as proof that the transaction took place and that the price you reported is accurate.

Some states use the sale price on the bill of sale to calculate sales tax or registration fees. If you are registering a car you just bought, bring the bill of sale to the motor vehicle department along with the title, proof of insurance, and your identification. If you are selling a car, the buyer will need the bill of sale to register it in their name.

A few states have their own official bill of sale form that they prefer or require. Check your state's motor vehicle department website before you create one — it will tell you if a specific format is needed and whether you must bring it in when you register the car.

Differences between a bill of sale and a title

The title is the official ownership document issued by your state. It shows who the state recognizes as the legal owner of the vehicle. When you buy a car, the seller must sign the title and give it to you. You then take the signed title to the motor vehicle department to register the car in your name. The state issues you a new title with your name on it.

The bill of sale is a private record between you and the other party. It documents the terms of the sale — the price, the date, the condition — but it does not transfer ownership by itself. Ownership transfers when the title is signed and registered with the state. The bill of sale is supporting evidence that the sale happened and on what terms.

In short: the bill of sale proves the sale occurred; the title proves who owns the car. You need both. The buyer needs the bill of sale to show the motor vehicle department, and the seller needs to sign the title so the buyer can register it.

Handwritten versus printed bills of sale

A handwritten bill of sale is legal and just as valid as a printed one. Write clearly in pen so the document cannot be altered later. Include all the required information — VIN, sale price, date, names, addresses, and signatures. Both parties should sign and date it by hand.

A printed or typed bill of sale looks more formal and is easier to read. You can use a template from your state's motor vehicle department website, a legal document service, or an office supply store. Fill in the blanks, print it, and have both parties sign in pen. A printed form is not required, but many people prefer it because it is harder to dispute later.

Whichever method you choose, make sure both the buyer and the seller receive a signed copy. Keep your copy in a safe place with your other car documents. Do not rely on a photo or email copy alone — keep the original signed document.

What happens if you sell a car without a bill of sale

If you sell a car without a bill of sale, you have no written proof of the sale. This creates risk for both parties. The seller has no record of who bought the car or when, which means they could be held liable if the buyer gets into an accident or racks up parking tickets after the sale. The buyer has no proof of the price paid or the condition of the car at the time of purchase, which makes it harder to dispute claims later.

Some states require a bill of sale when you transfer the title, so selling without one may delay registration. Even if your state does not require it, creating one takes only a few minutes and protects both parties. It is one of the simplest ways to avoid misunderstandings or disputes after the money and keys have changed hands.

Frequently Asked Questions

Do I have to notarize a bill of sale?

No, notarization is not required in most states. A bill of sale is valid as long as both parties sign it. However, some people choose to have it notarized for extra protection, especially in high-value sales. A notary public will verify the identities of both parties and witness the signatures. This costs between $5 and $15 but adds a layer of proof that the document is genuine.

What if the buyer or seller refuses to sign?

If you are the seller and the buyer refuses to sign, do not hand over the keys or the title. The bill of sale protects you by documenting the sale. If you are the buyer and the seller refuses to sign, do not give them money. A refusal to sign is a red flag that something is wrong with the sale or the vehicle.

Can I sell a car with a lien on it?

Yes, but the lien must be paid off before the title can transfer to the buyer. Note the lien on the bill of sale and make clear that the buyer understands the seller does not yet own the car outright. The lender must sign off on the title before the buyer can register it in their name. Arrange with the lender to pay off the loan at the time of sale, usually through an escrow account or at the lender's office.

How long should I keep the bill of sale?

Keep the bill of sale for at least three to five years after the sale. If you are the seller, it protects you if questions arise about the transaction. If you are the buyer, keep it until you sell the car or it is scrapped. Store it with your other car documents in a safe place.

What if I lost the bill of sale after I bought the car?

If you have already registered the car in your name, the title is your proof of ownership — you do not need the bill of sale anymore. However, if you need to prove the price you paid (for insurance or tax purposes), contact the seller and ask them to provide a copy of the bill of sale they kept. If they cannot, you may be able to use bank records or a cancelled check as proof of the transaction.