What goes in a bill of sale and why you need one

A bill of sale is a written record that you sold a car to someone else, and it protects both you and the buyer. It documents the sale price, the vehicle details, and the date of the transaction. When you hand over the keys, you hand over this document too — it becomes proof of ownership transfer and protects you from liability if the buyer gets into an accident or racks up parking tickets after the sale.

You do not need a lawyer to write one. A bill of sale can be as straightforward as a handwritten note on a piece of paper, though a typed version is clearer and easier to read if there is ever a dispute. Some states do not require a bill of sale by law, but having one is still the safest move — it protects you if the buyer later claims they never bought the car, or if they damage it and try to hold you responsible.

The buyer needs this document to register the car in their name at the DMV. Without it, they cannot legally transfer the title into their possession. You keep a copy for your records.

Key Takeaways

  • A bill of sale must include the vehicle identification number (VIN), the sale price, the date of sale, and the full names and addresses of both the seller and buyer.
  • You can write a bill of sale by hand or type it, and you do not need a lawyer — a straightforward format works as long as all required information is present.
  • Both the seller and buyer should sign and date the document, and each should keep a copy for their records.
  • Some states have specific bill of sale forms available through the DMV website, and using the state form removes guesswork about what to include.

The information you must include

Start with the basics: the date of the sale, your full name and address (the seller), and the buyer's full name and address. These go at the top of the document. Then add the vehicle information: the year, make, model, color, and most importantly, the Vehicle Identification Number (VIN). The VIN is a 17-character code stamped on the driver's side dashboard and also appears on the title and registration. You can find it by looking through the windshield on the left side of the dashboard, or on the title document itself.

Next, write the sale price — the exact dollar amount the buyer is paying. If the buyer is paying in cash, write "cash." If they are paying by check or transfer, you can note that too. Some sellers write "as-is" to indicate the car is being sold in its current condition with no warranty. This protects you from the buyer later claiming you promised repairs or that something was wrong with the car.

Add a line stating that the seller is transferring ownership of the vehicle to the buyer, and that the buyer accepts the vehicle in its current condition. You can write this in plain language: "The seller transfers full ownership of the above vehicle to the buyer. The buyer accepts the vehicle as-is."

How to format and write it

You can write a bill of sale on any piece of paper — lined notebook paper, printer paper, or a form you read. If you want to use a template, search your state's name plus "bill of sale form" on the DMV website. Many states provide official forms that you can print and fill in. Using your state's form is the safest option because it includes everything the DMV requires.

If you are writing it yourself, organize it like this: put the date at the top, then "Bill of Sale" as a heading. Below that, write "Seller:" followed by your name and address. Then "Buyer:" with their name and address. Create a section for vehicle information with the year, make, model, color, and VIN. Add a line for the sale price and the payment method. Then write a sentence transferring ownership, and leave space for both signatures and dates at the bottom.

Keep the language straightforward and clear. You do not need legal jargon. A bill of sale that says "I, [your name], sold my 2015 Honda Civic, VIN [number], to [buyer name] for $8,500 on [date]" is perfectly valid. The goal is to make it obvious what was sold, for how much, and when.

Signing and copies

Both you and the buyer must sign the bill of sale. Print or write it out, then sign and date it in front of the buyer if possible. The buyer should also sign and date it. If you cannot meet in person, you can sign it, have the buyer sign it, and exchange copies by mail or email — though signing in person is clearer and removes any doubt about authenticity.

Make at least two copies: one for you and one for the buyer. If you are financing the sale through a bank or lender, they may also need a copy. Keep your copy in a safe place — you may need it later if there is a dispute about the sale, or if the buyer gets into an accident and someone tries to hold you liable.

Some states allow electronic signatures on a bill of sale, but check your state's DMV website to confirm. If you are unsure, a printed document with handwritten signatures is always accepted.

What happens after the buyer signs

Once both of you have signed, the buyer takes their copy to the DMV along with the title (which you must also provide) to register the car in their name. The DMV will use the bill of sale to confirm the sale price and transfer ownership. You should keep your copy for at least three to five years in case questions come up later.

After the sale is complete, contact your insurance company and tell them you no longer own the vehicle. Remove the license plates if your state requires it, or let the buyer know they need to transfer the registration. Your responsibility for the car ends once the buyer has the signed bill of sale and the title.

Common mistakes to avoid

Do not leave the sale price blank or write "cash" without a number — the DMV needs the actual amount. Do not forget to include the VIN; without it, the bill of sale is incomplete and the buyer cannot register the car. Do not sign the document and then let the buyer fill in their own name and address later; both parties should be present when it is signed, or at least verify each other's information before signing.

Avoid writing "as-is" if you have promised repairs or told the buyer about a specific problem you will fix. That creates a contradiction and could lead to a dispute. If you have made promises about the car's condition or repairs, either honor them before the sale or do not write "as-is." Be honest about the vehicle's condition in the bill of sale or in a separate written agreement.

Do not use someone else's name or address, and do not accept a bill of sale with incorrect information about you. If something is wrong, cross it out, write the correct information, and both of you initial the change. This shows the correction was intentional and agreed to by both parties.

When you need a notarized bill of sale

Most states do not require a bill of sale to be notarized, but some do for certain vehicle types or sale amounts. Check your state's DMV website to see if notarization is required. If it is, you and the buyer must sign the bill of sale in front of a notary public, who will verify your identities and witness your signatures. Notaries are available at banks, UPS stores, and some government offices, and they charge a small fee — usually between $5 and $15.

Even if notarization is not required, getting the bill of sale notarized adds an extra layer of protection. It proves that both parties signed willingly and that the signatures are genuine. If you are concerned about the buyer later claiming they never agreed to the sale, notarization makes that claim much harder to support.

Frequently Asked Questions

Can I write a bill of sale by hand, or does it have to be typed?

Handwritten bills of sale are legal and accepted by the DMV in all states. Typed is clearer and easier to read, but handwritten works fine as long as the information is legible and both parties sign it. Make sure the handwriting is clear enough that there is no confusion about the VIN, price, or names.

What if I do not know the exact sale price yet?

Do not sign the bill of sale until you and the buyer have agreed on a final price. The bill of sale documents the actual sale, so it must include the amount you both agreed to. If the price changes after you sign, you will need to write a new bill of sale or have both parties initial the change.

Do I need to include the odometer reading on the bill of sale?

Some states require the odometer reading for vehicles under a certain age (often 10 years old). Check your state's DMV website to see if this is required. If it is, write the current mileage on the bill of sale. You can find the mileage on the dashboard instrument cluster.

What if the buyer wants to pay me after the sale is complete?

You can note the payment terms on the bill of sale — for example, "Buyer will pay $8,500 by check on [date]." However, do not hand over the keys or the title until you have received full payment. The title is what gives the buyer legal ownership, so hold onto it until the money is in your account.

Can I sell a car without a bill of sale?

Technically, you can transfer a title without a bill of sale in some states, but it is not recommended. A bill of sale protects you by documenting that the sale happened, who bought it, and for how much. Without it, you have no proof you sold the car, which can create problems if the buyer gets into an accident or stops paying a loan on the vehicle.