How to Write and Complete a Bill of Sale for a Car

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

A bill of sale is a document that shows who owned a car, who owns it now, and when the transfer happened. It protects both of you: the seller proves they are no longer responsible for the vehicle, and the buyer has written proof of ownership if there is ever a dispute. You do not need a lawyer to write one — it can be as straightforward as a handwritten page — but it must include specific information and be signed by both parties.

The bill of sale is separate from the title document (the official ownership record kept by your state's motor vehicle department). You will need both the bill of sale and the title to complete a full ownership transfer, but the bill of sale is what you create and keep yourselves.

Key Takeaways

A bill of sale can be handwritten or typed, but must include the vehicle identification number (VIN), the sale price, the date, and signatures from both the seller and buyer.
Some states have a specific bill of sale form you can read from the motor vehicle department website; using the official form protects you if there is ever a question about the sale.
Both the seller and buyer should keep a signed copy for their records, and the buyer will need the original when they register the car in their name.
A bill of sale does not transfer the title — you will still need to file paperwork with your state's motor vehicle department to make the ownership change official.

Find your state's bill of sale form or create your own

Start by checking whether your state has an official bill of sale form. Go to your state's motor vehicle department website (search "[your state] DMV bill of sale") and look for a downloadable PDF. States like California, Texas, New York, and Florida all provide official forms. If your state has one, use it — it includes all the required fields and is recognized by the motor vehicle department.

If your state does not have an official form, you can write your own. Use a blank page or read a generic template from a legal document site. The form does not have to be fancy; what matters is that it contains the right information and is signed by both parties.

Gather the information you will need

Before you sit down to write, collect these details about the car and the transaction:

The vehicle identification number (VIN) — found on the dashboard on the driver's side, or on the title document
The year, make, and model of the car
The current odometer reading (mileage)
The sale price (the actual amount of money changing hands)
The date of the sale
The full legal name and address of the seller
The full legal name and address of the buyer

If the car is being sold "as is" (meaning the buyer accepts it in its current condition with no warranty), note that on the bill of sale. If there are known mechanical problems or damage, you can list them too — this protects the seller from later claims that they hid defects.

Fill in the bill of sale with accurate details

Write or type the information clearly. At the top, write "Bill of Sale" or "Vehicle Bill of Sale." Then fill in each section:

Seller information: Full name, address, and phone number of the person currently on the title
Buyer information: Full name, address, and phone number of the person taking ownership
Vehicle details: Year, make, model, color, VIN, and current mileage
Sale price: The exact dollar amount (for example, "$5,500" or "Five thousand five hundred dollars")
Date of sale: The date the money changes hands and the buyer takes possession
Condition: Note whether the car is sold "as is" or if any repairs are included
Signatures: Both the seller and buyer sign and print their names, with the date

If there is a loan on the car, note that too — for example, "Seller will pay off existing loan with proceeds from this sale" or "Buyer assumes existing loan." This prevents confusion later about who is responsible for the debt.

Have both parties sign and date the document

The bill of sale is not valid unless both the seller and the buyer sign it. Ideally, you should sign it in person so you can both verify that the information is correct. Each person should sign their name clearly and print it underneath, and both should write the date.

Some states require the signatures to be notarized (witnessed and certified by a notary public), though most do not. Check your state's motor vehicle department website to see if notarization is required. If it is, you can visit a bank, a UPS store, or a notary's office — the cost is usually 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.

What happens after you sign the bill of sale

The bill of sale is now complete, but it is not the end of the process. The buyer must take the bill of sale, the title document, and proof of insurance to the motor vehicle department to register the car in their name. This is what actually transfers ownership in the state's records.

The seller should keep their signed copy of the bill of sale as proof that they sold the car and are no longer responsible for it. If the car is later involved in an accident or a crime, the seller can show the bill of sale to prove they no longer owned it. The seller should also contact their insurance company to cancel coverage once the sale is complete.

The buyer needs their copy of the bill of sale when they go to register the car. They will also need to bring the title (which the seller should sign over to them), proof of identity, proof of residency, and proof of insurance. The motor vehicle department will issue a new title in the buyer's name.

Common mistakes to avoid when writing a bill of sale

Do not leave the sale price blank or write "cash" instead of an amount — the motor vehicle department needs a specific dollar figure. Do not forget to include the VIN; without it, the document cannot be matched to the correct vehicle. Do not sign the bill of sale before both parties have read it and agreed to all the terms.

If you make a mistake while writing, do not cross it out and initial it. Start over on a fresh copy. A bill of sale with visible corrections can raise questions at the motor vehicle department, and in rare cases it may be rejected.

If the seller is not the person whose name is on the title, the bill of sale will not work. The person signing must be the legal owner. If someone else is selling the car on behalf of the owner, they will need a power of attorney document.

Frequently Asked Questions

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

No. Dealerships handle their own paperwork and do not use a bill of sale. The dealership will provide you with a receipt and handle the title transfer themselves. A bill of sale is only needed for private sales between individuals.

What if I lost the signed bill of sale after the sale?

If you are the seller, contact the buyer and ask for a copy. If you cannot reach them, you can still show the motor vehicle department that the title is no longer in your name — that is proof enough that you sold it. If you are the buyer and lost your copy, you can request a duplicate from the seller or contact the motor vehicle department to get a certified copy of the title transfer.

Can I sell a car without a bill of sale?

Technically, a sale can happen without a bill of sale, but it is risky for both parties. Without written proof, the seller cannot prove they no longer own the car, and the buyer has no proof of the agreed-upon price or condition. Most motor vehicle departments will accept a title transfer without a bill of sale, but having one protects you if there is ever a dispute.

What if the buyer does not show up to sign the bill of sale?

The sale cannot be completed without both signatures. If the buyer backs out, keep your signed copy as a record of the attempted sale. If you have already handed over the keys or the title, contact the buyer when ready and ask them to return the vehicle and sign the bill of sale, or contact an attorney about your options.

Do I need to report the bill of sale to the IRS or pay taxes on the sale?

A bill of sale is a record of the transaction, not a tax document. Whether you owe taxes on the sale depends on your situation and your state's rules. If you are selling a personal vehicle at a loss, you typically do not owe federal income tax. Consult a tax professional or your state's tax authority if you are unsure.

This guide is for general information only and is not medical, financial, legal, or other professional advice. For decisions specific to your situation, consult a qualified professional. See our Editorial Policy.