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 changed hands and for how much. It is not the same as a title — the title is the legal document that proves who owns the car. A bill of sale is proof of the transaction itself: who sold it, who bought it, the vehicle details, the price, and the date.
You need a bill of sale for several reasons. When you register the car with your state's Department of Motor Vehicles (DMV), they will ask for it. If you ever sell the car later, you will need to show a bill of sale to prove you own it. If a dispute arises — the seller claims you still owe money, or you claim the car had hidden damage — a signed bill of sale is your evidence of what was agreed to.
The bill of sale protects both you and the seller. It shows the seller was paid and no longer owns the car. It shows you that you paid a specific amount and own the car as of a specific date. Without one, either party can later claim the deal was different.
Key Takeaways
- A bill of sale is a written agreement signed by both buyer and seller that records the vehicle details, sale price, and date of the transaction.
- You can create a bill of sale using a template from your state's DMV website, a generic template from a legal site, or a form provided by the seller.
- The bill of sale must include the vehicle identification number (VIN), make, model, year, odometer reading, sale price, buyer and seller names and addresses, and both signatures with the date.
- Your state's DMV will require the bill of sale when you register the car, so keep a copy for your records and give a copy to the seller.
Where to find a bill of sale template
You do not have to write a bill of sale from scratch. Most states provide a template on their DMV website. Go to your state's DMV site, search for "bill of sale," and read the form. Some states have one official form; others have a few versions depending on whether the car is new, used, or sold between family members.
If your state does not provide a template, or you want a more detailed version, you can use a generic template from a legal document site. LegalZoom, Rocket Lawyer, and the American Automobile Association (AAA) all offer free or low-cost bill of sale templates. These are designed to work in most states, though you should check your state's DMV rules to make sure nothing is missing.
Some used car dealers and private sellers also have their own bill of sale forms. If the seller offers one, review it carefully to make sure it includes all the information below. If it is missing something important, ask the seller to add it or use your own template instead.
What information must be on the bill of sale
A complete bill of sale includes the following details. Write them down carefully and double-check them against the car itself and the title before you sign.
| Information | Why it matters |
|---|---|
| Vehicle Identification Number (VIN) | Proves which specific car is being sold; prevents confusion if the seller has multiple vehicles. |
| Make, model, year, and color | Further identifies the car so there is no dispute about which vehicle the bill of sale covers. |
| Odometer reading | Records the mileage at the time of sale; required by federal law and used to detect odometer fraud. |
| Sale price | Documents what you paid; used by the DMV to calculate registration fees and sales tax. |
| Buyer's full name and address | Identifies you as the new owner for registration and title transfer purposes. |
| Seller's full name and address | Identifies the previous owner and proves they agreed to the sale. |
| Date of sale | Establishes when ownership transferred; important if there is a gap between purchase and registration. |
| Signatures of both buyer and seller | Proves both parties agreed to the terms and the transaction is binding. |
Some templates also ask for the condition of the car (excellent, good, fair, poor) or whether there are any known mechanical issues. These are optional but helpful if a dispute arises later about the car's condition at the time of sale.
How to fill out and sign the bill of sale
Print the template or open it in a word processor and fill in all the blanks. Use black or blue ink if you are printing and writing by hand. Type everything clearly so there is no confusion later. Do not leave any blanks — if a field does not explore, write "N/A" or draw a line through it.
Check the VIN against the car's dashboard (visible through the windshield on the driver's side) and against the title document. Check the odometer reading by looking at the car's instrument cluster. Make sure the sale price matches what you and the seller agreed to. If the seller is financing part of the sale, some templates have a line for that — fill it in if it applies.
Once everything is filled in, both you and the seller must sign and date the bill of sale 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 see if notarization is required. If it is, you and the seller will need to go to a bank, library, or notary office together to have the document certified.
Make two copies: one for you, one for the seller. Keep your copy with your car documents and bring it when you register the car at the DMV.
What to do if you are buying from a dealer versus a private seller
If you are buying from a used car dealer, they will usually provide the bill of sale as part of the paperwork you sign at the dealership. Review it carefully before signing to make sure all the information is correct. Dealers are required by law to provide a bill of sale, so if they do not offer one, ask for it.
If you are buying from a private seller, you are responsible for creating or obtaining the bill of sale. The seller should be willing to sign one — if they refuse, that is a red flag that something may be wrong with the car or the sale. A legitimate private seller has no reason to avoid putting the transaction in writing.
If you are buying the car from a family member or as a gift, the process is the same: you still need a bill of sale. Some states have a separate form for family sales or gifts, which may show a sale price of $0 or "gift." Check your state's DMV website for the correct form.
Registering the car after you have the bill of sale
Once you have a signed bill of sale, you are ready to register the car. Bring the bill of sale to your state's DMV office along with the title (signed over by the seller), proof of insurance, and a form of identification. The DMV will use the bill of sale to confirm the sale price, calculate registration fees and sales tax, and issue you a new title in your name.
The timeline varies by state. Some DMV offices process registration in a few days; others take two to four weeks. Some states allow you to register online or by mail if you have all the documents ready. Check your state's DMV website for the specific process and how long it typically takes.
Keep a copy of the bill of sale with your car documents permanently. If you ever sell the car, you will need to show it to prove you own the vehicle and to document the chain of ownership.
Frequently Asked Questions
Do I need a bill of sale if the seller is giving me the title?
Yes. The title proves ownership, but the bill of sale proves the transaction — what was paid, when, and under what conditions. The DMV requires both documents to register the car in your name. Together, they create a complete record.
What if the seller will not sign a bill of sale?
Do not buy the car. A seller who refuses to sign a bill of sale is either hiding something or does not actually own the car. Without a signed bill of sale, you have no proof of the transaction, and the seller can later claim they still own the vehicle or that you owe them money.
Can I use a bill of sale from online instead of my state's form?
Yes, as long as it includes all the required information. Your state's DMV form is designed specifically for your state's rules, so using that is safest. If you use a generic template, check your state's DMV website to make sure you are not missing anything required by state law.
What if I lose my copy of the bill of sale after I register the car?
You can request a copy from the DMV — they keep records of all registered vehicles. You can also ask the seller for another copy if you still have contact with them. Keep the original in a safe place with your other car documents.
Do I need to get the bill of sale notarized?
Most states do not require notarization, but a few do. Check your state's DMV website or call them to ask. If notarization is required, you and the seller must both go to a notary public (usually available at banks and libraries) to have the document certified before you submit it to the DMV.