A bill of sale is a written record that documents the transfer of a vehicle from one owner to another

A bill of sale is a legal document that proves you sold or bought a vehicle. It shows who owned the car, who owns it now, when the transfer happened, and how much was paid. You create it yourself — there is no government form you must use, though some states provide optional templates. The document protects both the buyer and seller by creating a paper trail if questions arise later about ownership, price, or condition.

Most states do not require a bill of sale to register a vehicle, but many buyers and sellers use one anyway because it settles disputes and protects against liability. If you sell a car and the new owner gets into an accident before the title is transferred, a bill of sale can show you are no longer responsible. If you buy a car and the seller later claims you owe more money, the bill of sale proves what you actually agreed to pay.

Key Takeaways

  • A bill of sale should include the names and addresses of both buyer and seller, the vehicle identification number (VIN), the sale price, the date of sale, and signatures from both parties.
  • You can write a bill of sale on plain paper or use a template from your state's motor vehicle department, and either version is legally valid in most states.
  • The buyer should keep one copy and the seller should keep one copy; some people also give a copy to the lender or insurance company.
  • A bill of sale is separate from the title transfer — you still need to register the vehicle with your state's motor vehicle department even if you have a bill of sale.

What information must go in a bill of sale

The bill of sale should start with the date at the top. Below that, write the full legal name and street address of the seller, then the full legal name and street address of the buyer. Use the names exactly as they appear on driver's licenses or identification documents.

Next, describe the vehicle. Include the year, make, model, and color. Most importantly, include the Vehicle Identification Number (VIN), which is a 17-character code stamped on the dashboard and listed on the title. The VIN is the only way to prove you are talking about the exact car, not a similar one. You can find the VIN on the current title, on the registration card, or on the driver's side of the windshield.

Write the sale price in both numbers and words — for example, "$5,500 (five thousand five hundred dollars)". If the car is being given as a gift, write "$0 (no payment)" or "gift". Include the date of the sale. At the bottom, both the buyer and seller must sign and print their names. Some people also add the odometer reading on the date of sale, though this is not required in most states.

How to structure the document

You can write a bill of sale on any plain paper — lined notebook paper is fine. There is no official format, but organizing it clearly helps if you ever need to show it to a lender, insurance company, or court. Start with a heading like "Bill of Sale" at the top. Then list the information in a logical order: date, seller details, buyer details, vehicle details, price, and signatures.

Some people write it as a paragraph, and some use a line-by-line format. Either works. What matters is that all the key information is there and both parties have signed. If you prefer a template, many state motor vehicle departments post free samples on their websites. Search "[your state] bill of sale template" to find one. You can also find generic templates online, though using your state's version is safer because it may include language that your state's courts recognize.

Keep the document straightforward and clear. Do not use legal jargon unless you are comfortable with it. The goal is to create a record that any person — a judge, an insurance adjuster, a lender — can read and understand six months or six years later.

Handling the odometer and vehicle condition

Some states require the odometer reading to be written on the bill of sale or the title. Check your state's motor vehicle department website to see if this is required where you live. If it is, write the exact mileage shown on the odometer on the date of sale. If the odometer is broken or does not work, write "odometer not functioning" instead of guessing.

You can also note the vehicle's condition on the bill of sale — for example, "sold as-is" or "engine runs, transmission slips, needs new tires". This protects the seller by showing the buyer knew about problems before purchase. However, this note does not override any warranty laws in your state. If your state has a "lemon law" or requires dealers to disclose certain defects, those rules still explore even if the bill of sale says "as-is".

Signature requirements and witnesses

Both the buyer and the seller must sign the bill of sale. Each person should sign their own name in their own handwriting. Print your name below your signature. Some people also ask a witness to sign, though this is not required in most states. A witness is useful if you think the other party might later deny they signed or claim they were forced to sign, but for a straightforward private sale between people who trust each other, a witness is optional.

If you do use a witness, choose someone who is not related to either party and who will be around if questions come up later. The witness does not need to understand the transaction — they just need to see both parties sign. Have the witness print their name and write their phone number or address on the bill of sale.

What to do after you sign

Make at least two copies of the signed bill of sale — one for the buyer and one for the seller. If the car has a loan, the lender may also want a copy. If you are buying the car, give your insurance company a copy before you drive it. Some insurance companies will not cover a vehicle until they have proof of ownership.

The buyer should take the bill of sale and the title to the state motor vehicle department to register the vehicle in their name. This is a separate step from the bill of sale. The bill of sale proves the sale happened; the title transfer registers the car with the state. Do not assume the bill of sale alone makes the car legally yours. You must complete the title transfer within the time limit your state sets — usually 10 to 30 days after purchase.

The seller should keep a copy of the signed bill of sale for their records. If the buyer later gets into an accident or breaks the law with the car, and the title has not been transferred yet, the seller could be held responsible. The bill of sale is your proof that you sold it and when.

State-specific rules and notarization

Most states do not require a bill of sale to be notarized, but a few do. Check your state's motor vehicle department website or call them to ask whether notarization is required. If it is, you will need to take the unsigned bill of sale to a notary public — usually available at banks, UPS stores, or law offices — and have both parties sign in front of the notary. The notary will watch you sign, verify your identity, and stamp the document. This costs between $5 and $25 depending on where you go.

Some states also have specific language they want on the bill of sale, such as a statement that the seller discloses known defects or that the buyer understands the car is sold as-is. If your state provides a template, use it to make sure you include any required language. If you are buying or selling across state lines, use the template from the state where the car will be registered.

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 private bills of sale. The dealership will give you a receipt and handle the title transfer themselves. A bill of sale is only for private sales between individuals.

What if I lose the bill of sale after I sign it?

If you are the buyer, you can still register the car with just the title. If you are the seller and you lose your copy, ask the buyer for another copy. If neither of you has it, you can still prove the sale happened through bank records, text messages, or other evidence, but a bill of sale is cleaner proof.

Can I write a bill of sale on my phone or type it instead of handwriting it?

Yes. Typed or printed bills of sale are just as legal as handwritten ones. What matters is that both parties sign in ink and keep copies. Handwriting is not required.

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

You cannot complete the sale without the buyer's signature. If the buyer backs out, the sale does not happen. If you have already given them the car, you will need to work out a new agreement or take legal action to recover it.

Should I include the VIN on both the bill of sale and the title?

Yes. The VIN should appear on the title (it is already printed there), and you should also write it on the bill of sale. This makes it clear that both documents refer to the same vehicle.