What a bill of sale is and why you need one
A bill of sale is a written record that you and the seller both sign to prove that a car has changed hands. It documents the sale price, the vehicle details (make, model, year, VIN), the date of the transaction, and the names and signatures of both the buyer and seller. When you buy a used car from a private person, a bill of sale is your proof of ownership until you register the vehicle with your state's motor vehicle department.
You need a bill of sale for several practical reasons. Your state's DMV will ask for it when you register the car in your name. Your insurance company will need it to write a policy. If a dispute arises later—the seller claims you still owe money, or you discover the car has a lien against it—the bill of sale is your evidence of what was agreed to and when. Without one, you have no legal record of the transaction.
Key Takeaways
- A bill of sale is a signed document that proves you bought the car and documents the price, vehicle details, and date of sale.
- Your state's DMV requires a bill of sale when you register a used car purchased from a private seller.
- You can use a template from your state's DMV website, a generic template, or a form provided by the seller—all are legally valid as long as both parties sign.
- The seller should sign the bill of sale before you hand over money, and you should keep a copy for your records and bring the original to the DMV.
Where to find a bill of sale form
Your state's motor vehicle department website usually offers a free bill of sale template. Search "[your state] DMV bill of sale" to find it. Some states call it a "sales agreement" or "purchase agreement" instead. If your state does not provide one, you can use a generic template from a legal document site or even write one yourself on plain paper, as long as it includes the required information.
If you are buying from a dealership, they will provide their own bill of sale form—you do not need to bring one. Private sellers sometimes have their own form too. Any of these options is legally valid in all states as long as both parties sign and date it.
What information to include on the bill of sale
Fill in the following details before either party signs:
- The date of the sale
- The buyer's full name and address
- The seller's full name and address
- The vehicle's year, make, model, and color
- The vehicle identification number (VIN), found on the dashboard or in the seller's title document
- The odometer reading on the day of sale
- The sale price (write the actual amount, even if it is a gift or trade-in)
- The condition of the sale: "as-is" (meaning you accept the car in its current condition) or any specific repairs the seller promised to make
- Signatures and dates from both buyer and seller
Some states require additional information, such as whether the car has a lien (money still owed to a bank or lender). Check your state's DMV website to see if there are extra fields you need to complete.
How to complete and sign the bill of sale
Print or write out the form clearly so all information is legible. Fill in every blank—do not leave fields empty. If something does not explore (for example, the car has no outstanding loan), write "N/A" or "none" rather than leaving it blank.
Both you and the seller should sign and date the form in front of each other. 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 confirm whether notarization is required. If it is, you and the seller will need to visit a notary together with the signed bill of sale.
Make two copies: one for you and one for the seller. Keep your copy in a safe place. You will bring the original to the DMV when you register the car.
When to get the bill of sale signed
The bill of sale should be signed before you hand over money or the keys. This protects both of you by creating a record of the agreement before the transaction is complete. If the seller refuses to sign until after payment, that is a red flag—a legitimate seller will sign the bill of sale as part of closing the deal.
Some buyers and sellers sign the bill of sale at the same time they exchange the title document and keys. Others sign it first, then complete the rest of the transaction. Either order works, as long as the bill of sale is signed before money changes hands.
What to do with the bill of sale after the sale
Keep your copy of the signed bill of sale with your other car documents. Bring the original to your state's DMV office when you register the vehicle in your name. The DMV will keep it on file as part of your registration record. You may also want to send a copy to your insurance company when you purchase a policy, though they will usually accept the registration documents instead.
If you sell the car later, the buyer will ask you for a bill of sale. You can use the same template and process: fill it out with the new buyer's information, sign it together, and give them a copy.
What happens if the seller will not sign a bill of sale
A seller who refuses to sign a bill of sale is a serious concern. It suggests they may not own the car outright, may have hidden damage or liens, or may not intend to transfer the title to you. Do not proceed with the purchase until you have a signed bill of sale.
Before you walk away, ask the seller why they are refusing. Sometimes it is a misunderstanding—they may not realize it is a standard part of any car sale. Explain that you need it to register the car with the DMV and that it protects both of you. If they still refuse, that is a sign to find a different car.
Frequently Asked Questions
Do I need a bill of sale if I buy from a dealership?
No. Dealerships provide their own paperwork and handle the title transfer directly. You will receive a purchase agreement and other documents from the dealership instead. A bill of sale is mainly for private sales between individuals.
What if I lose my copy of the bill of sale?
Contact the seller and ask for another copy. If you cannot reach them, the DMV has a record of the bill of sale you submitted during registration, and you can request a copy from them. You will need to provide your vehicle registration number and proof of ownership.
Can I write a bill of sale by hand instead of printing a form?
Yes. A handwritten bill of sale is legally valid in all states as long as it includes all required information and both parties sign and date it. Use clear handwriting and keep a copy for your records.
Does the bill of sale need to be notarized?
Most states do not require notarization for a bill of sale. A few states do, so check your state's DMV website before you sign. If notarization is required, you and the seller will need to visit a notary public together with the signed form.
What if the sale price on the bill of sale is different from what I actually paid?
Write the actual amount you paid, even if it differs from the asking price. The bill of sale is a legal record of the transaction, so it must be accurate. Some buyers and sellers negotiate the price down at the last moment—make sure the bill of sale reflects what was actually agreed to.