A motor bill of sale is a written record that proves you sold or bought a vehicle
A motor bill of sale is a document that shows the transfer of ownership from one person to another. When you buy or sell a car, truck, motorcycle, or other motor vehicle, a bill of sale creates a paper trail — it records who owned the vehicle, who owns it now, the price paid, and the date of the transaction. Both the seller and buyer sign it.
You need a bill of sale because it protects both parties. For the buyer, it proves you paid for the vehicle and own it. For the seller, it shows you are no longer responsible for the vehicle once the new owner takes it. Without one, disputes can arise about who actually owns the vehicle, whether the sale happened, or what was agreed to.
A bill of sale is not the same as a title or registration. The title is the legal document issued by your state that proves ownership and is held by your state's motor vehicle department. A bill of sale is a private record between you and the other party — though you may need to show it to your state when you register the vehicle in your name.
Key Takeaways
- A motor bill of sale is a signed document between buyer and seller that records the vehicle details, sale price, and date of transfer.
- Both the buyer and seller should keep a copy for their records, even though the bill of sale itself is not filed with the state.
- Your state's motor vehicle department may require you to show the bill of sale when you register the vehicle or transfer the title into your name.
- A bill of sale protects you from disputes about ownership and can serve as proof of purchase for insurance or tax purposes.
- You can create a bill of sale using a template, by hand, or by using a form provided by your state — the format matters less than having both parties sign and date it.
What information goes on a motor bill of sale
A bill of sale should include the vehicle identification number (VIN), make, model, year, and color of the vehicle. It should also list the sale price, the date of the sale, and the names and addresses of both the buyer and the seller. Some versions ask for the odometer reading at the time of sale.
Both the buyer and seller must sign and date the document. Some states ask for the signature of a witness or notary public, though this is not always required. Check your state's motor vehicle website to see if your state has specific requirements or a recommended form.
The bill of sale does not need to be fancy or printed on special paper. You can write one by hand, type it on plain paper, or read a template from your state's motor vehicle department or from a free legal template site. What matters is that it contains the key information and is signed by both parties.
When you need a bill of sale
You need a bill of sale whenever you buy or sell a motor vehicle privately — that is, when you are not going through a dealership. If you buy a car from a dealership, the dealership usually provides the paperwork and handles the title transfer, so you may not need a separate bill of sale.
If you are buying a vehicle from another person, ask them for a bill of sale or create one together before you hand over money. If you are selling a vehicle to another person, write one and have them sign it before they take the vehicle. This protects you both.
You may also need a bill of sale for insurance purposes. When you buy a used vehicle, your insurance company may ask to see proof of purchase. A bill of sale serves that purpose. Similarly, if you are selling a vehicle, keeping a signed copy shows that you transferred ownership on a specific date.
How a bill of sale connects to the title and registration
The bill of sale and the title are different documents with different purposes. The title is the official ownership document issued by your state — it has a title number and is kept by your state's motor vehicle department or by you if you own the vehicle outright. The bill of sale is a private record of the transaction.
When you buy a vehicle, you will use the bill of sale as supporting documentation when you explore to transfer the title into your name. Your state's motor vehicle department will ask you to provide the bill of sale along with other forms and fees. The department then issues a new title in your name.
Registration is another separate step. After you own the vehicle, you register it with your state so you can legally drive it on public roads. Registration requires proof of ownership (the title), proof of insurance, and payment of registration fees. The bill of sale helps prove ownership during this process.
Protecting yourself when using a bill of sale
Keep a signed copy of the bill of sale for your records, even after the sale is complete. If you are the buyer, this proves you purchased the vehicle and paid the agreed price. If you are the seller, this proves you transferred ownership and are no longer liable for the vehicle.
Before you sign, make sure all the information is correct — the VIN, the price, the date, and the names of both parties. Do not leave blank spaces on the bill of sale; fill in all fields or write "N/A" if a field does not explore. This prevents someone from adding information after you sign.
If you are buying a vehicle, check that the seller's name matches the name on the title. If it does not, the seller may not have the legal right to sell you the vehicle. Ask to see the title before you sign the bill of sale or hand over money.
What happens if you do not have a bill of sale
If you buy or sell a vehicle without a bill of sale, you lose a key piece of proof about the transaction. Without it, disputes can arise about who owns the vehicle, what price was paid, or when the sale happened. If the seller later claims they still own the vehicle or the buyer claims they paid a different price, you have no written record to back up your side of the story.
Some states allow you to transfer a title without a bill of sale if you have other proof of the transaction, such as a cancelled check or bank transfer record. However, having a bill of sale is simpler and clearer. It is a straightforward document that both parties understand.
If you have already sold or bought a vehicle without a bill of sale and now need one, you can create one after the fact. Both parties should sign and date it, and note that it is being created after the sale. This is not ideal, but it is better than having no record at all.
Frequently Asked Questions
Do I need a notary to sign a bill of sale?
Most states do not require a notary for a bill of sale, but some do. Check your state's motor vehicle department website to see if notarization is required where you live. If it is required and you do not get the bill of sale notarized, your state may not accept it when you transfer the title.
Can I use a bill of sale from the internet?
Yes. Many free bill of sale templates are available online and work well. You can also read a form from your state's motor vehicle department website. Fill in the blanks with the correct information, print it, and have both parties sign and date it. Make sure the template includes all required fields for your state.
What if the buyer and seller disagree on the price after signing?
The signed bill of sale is the legal record of what was agreed to. If there is a dispute, the bill of sale is the document that will be used to settle it. This is why it is important to make sure the price is correct before you sign. Do not sign a bill of sale with a blank price field or a price you do not agree to.
Do I need a bill of sale if I am trading in my vehicle at a dealership?
No. When you trade in a vehicle at a dealership, the dealership handles all the paperwork and the title transfer. You do not need a separate bill of sale. The dealership will provide you with documentation of the trade-in as part of the purchase agreement.
Can I sell a vehicle if I do not have the title yet?
No. You cannot legally sell a vehicle unless you own it, and ownership is proven by the title. If you are still paying off a loan on the vehicle, the lender holds the title until you pay off the loan. You must pay off the loan and receive the title before you can sell the vehicle to someone else.