What an Illinois Motor Vehicle Bill of Sale Does
An Illinois motor vehicle bill of sale is a document that records the transfer of ownership when you buy or sell a car, truck, motorcycle, or other vehicle. It serves as proof that money (or other value) changed hands and that the seller no longer owns the vehicle. The Illinois Secretary of State does not require a bill of sale to register a vehicle, but it protects both buyer and seller by creating a written record of the transaction, including the sale price, vehicle details, and the date of transfer.
The bill of sale becomes important if a dispute arises later — for example, if the seller claims they were never paid, or if the buyer questions the vehicle's condition at the time of sale. Without one, you have no documentation of what was agreed to. Illinois does not have a single state-mandated form, which means you can use a template, write your own, or use one provided by a dealer or title company.
Key Takeaways
- A bill of sale records the vehicle transfer and protects both buyer and seller, even though Illinois does not require it to register the vehicle.
- The document must include the vehicle identification number (VIN), sale price, buyer and seller names and addresses, and the date of sale.
- Both the buyer and seller should sign and date the bill of sale, and each should keep a copy for their records.
- You can use a template, write your own, or obtain one from a dealer or title company — there is no single official Illinois form.
- The bill of sale is separate from the title transfer; you will still need to complete title paperwork with the Secretary of State to legally register the vehicle in the buyer's name.
Information to Include on the Bill of Sale
The bill of sale must contain specific details about the vehicle and the transaction. Start with the vehicle identification number (VIN), which appears on the dashboard near the windshield and on the title document itself. Include the year, make, model, and color of the vehicle. Write down the current odometer reading at the time of sale — this protects the buyer by documenting the mileage and helps prevent odometer fraud.
Next, record the sale price in words and numbers. For example, write both "Five Thousand Dollars" and "$5,000" to avoid confusion. Include the date of the sale, the full names and addresses of both the buyer and the seller, and the condition of the vehicle (for instance, "as-is" or "with warranty"). If the vehicle has a lien — meaning a bank or lender still holds a claim on it — note that as well, since the lien must be satisfied before the title can transfer to the buyer.
Some buyers and sellers also add language stating whether any warranties are included or if the vehicle is sold "as-is" with no guarantees. This clarifies expectations and can prevent later disputes about the vehicle's condition or mechanical problems.
How to Format and Sign the Bill of Sale
There is no required format for an Illinois bill of sale, but a clear, readable layout works best. You can type it or write it by hand — both are acceptable. Use a template from a reputable source (many are available free online), or create your own document that includes all the required information listed above.
Both the buyer and seller must sign and date the document. Some people have the signatures notarized, which adds an extra layer of verification, though notarization is not required by Illinois law. If you choose to have it notarized, a notary public will verify the identities of both parties and witness the signatures. This costs a small fee but can be useful if the transaction is later questioned.
Make at least two copies — one for the buyer and one for the seller. If there is a lien on the vehicle, the lender may also want a copy. Keep your copy in a safe place, along with any other vehicle paperwork.
When You Need a Bill of Sale vs. When You Don't
You should use a bill of sale whenever money or value changes hands for a vehicle, whether you are buying from a private seller, a family member, or a dealer. Private sales between individuals are the most common situation where a bill of sale matters, because there is no dealership paperwork to document the transaction.
If you are buying from a licensed Illinois dealer, the dealer will typically provide their own sales contract or bill of sale as part of the purchase process. You should still keep that document. If you are receiving a vehicle as a gift, a bill of sale is not necessary, but you will still need to complete a title transfer with the Secretary of State and pay the registration fee.
Even if the sale price is very low — for example, selling a car to a friend for $500 — a bill of sale is still a good idea. It protects both of you by creating a clear record that the transaction occurred and what was agreed to.
The Difference Between a Bill of Sale and a Title Transfer
A bill of sale and a title transfer are two separate documents that serve different purposes. The bill of sale is a private record between the buyer and seller showing that the sale happened. The title transfer is the official paperwork you submit to the Illinois Secretary of State to change the vehicle's registration from the seller's name to the buyer's name.
After you complete the bill of sale, the buyer must take it to a Secretary of State facility along with the current title, a completed process for Illinois Vehicle Registration (Form VSD 190), proof of insurance, and payment for registration and title fees. The Secretary of State will then issue a new title in the buyer's name. Without this step, the vehicle remains registered to the seller, and the buyer cannot legally drive it.
Think of it this way: the bill of sale proves the sale happened between you and the other person. The title transfer tells the state that the vehicle now belongs to someone else.
What Happens If You Sell Without a Bill of Sale
Selling a vehicle without a bill of sale is risky for both parties. If the buyer later claims they never received the vehicle or that it was damaged, you have no written proof of what was agreed to or when the sale occurred. Similarly, if the seller claims the buyer never paid, the buyer has no documentation of payment.
Without a bill of sale, disputes often end up in small claims court, where a judge must decide based on each person's word alone. A written bill of sale gives you evidence to present. Additionally, if the buyer fails to register the vehicle or gets into an accident before transferring the title, the seller may still be held liable because the state's records still show them as the owner.
Creating a bill of sale takes only a few minutes and costs nothing. It is one of the simplest ways to protect yourself in a vehicle transaction.
Frequently Asked Questions
Does Illinois require a notarized bill of sale?
No, Illinois does not require notarization for a bill of sale. Both parties straightforward need to sign and date it. However, having it notarized adds verification and can be useful if the transaction is later disputed. A notary public will charge a small fee, usually between $5 and $15.
Can I use a bill of sale template I find online?
Yes. Many free templates are available online and work well for Illinois vehicle sales. Make sure the template includes all required information: VIN, sale price, buyer and seller names and addresses, vehicle details, odometer reading, and the date. Customize it with your specific transaction details before signing.
What if the vehicle has a lien on it?
Note the lien on the bill of sale and include the lender's name. The lien must be paid off before the title can transfer to the buyer. Usually the seller pays off the lien at closing using part of the sale proceeds, or the buyer and seller arrange for the lender to release the lien once payment is received.
Do I need a bill of sale if I am buying from a dealer?
Licensed dealers provide their own sales contracts and paperwork. Keep whatever document the dealer gives you — it serves the same purpose as a bill of sale. You do not need to create a separate one, but the dealer's paperwork should include all the same key information.
What should I do with the bill of sale after the sale is complete?
Keep your copy in a safe place, such as a file with your other vehicle documents or a safe deposit box. You may need it later if a question arises about the sale, the vehicle's condition, or the price paid. Do not throw it away after the title transfer is complete.