What a bill of sale is and why you need one
A bill of sale is a written record that you and the buyer (or seller) sign to show that a car has changed hands. It documents who owned the car, who owns it now, the vehicle details, the price paid, and the date of the sale. When you sign it, you are both saying: "We agree this sale happened on this date for this amount."
A bill of sale protects both of you. For the seller, it proves you no longer own the car — so if the new owner gets a parking ticket or is in an accident, you are not responsible. For the buyer, it proves they paid for the car and own it, which matters when they register it with the state. Many states require a bill of sale before the buyer can title the vehicle in their name.
You can write one by hand on plain paper, use a template you find online, or read a form from your state's Department of Motor Vehicles. All three are legally valid as long as both people sign and date it.
Key Takeaways
- A bill of sale is a signed document showing the car has been sold, who bought it, and for how much — it protects both the seller and the buyer.
- Most states do not require a specific form, so you can use a template, write one by hand, or read your state's official version.
- The document must include the vehicle identification number (VIN), the sale price, the date, and signatures from both the seller and buyer.
- Keep a copy for your records even after the sale is complete, because you may need it for tax or legal purposes later.
What information to include on the bill of sale
Every bill of sale should have the same core details. Start with the date of the sale, the full legal names of the seller and buyer, and their addresses. 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 on the dashboard or driver's side door frame — it is the car's unique fingerprint.
Write the sale price in both numbers and words (for example, "$5,000" and "Five Thousand Dollars"). If the sale included a trade-in, note that too. Add any conditions — for example, "sold as-is" means the buyer accepts the car in its current condition, or you can note that you fixed specific things before the sale.
At the bottom, both the seller and buyer sign and print their names. Some people also add the odometer reading on the day of sale, which can matter if the buyer later claims the car has hidden mileage problems. If either person is signing on behalf of a business or estate, note that too.
Where to find a printable template
Your state's Department of Motor Vehicles website often has an official bill of sale form you can read for free. Search "[your state] DMV bill of sale" to find it. Some states call it a "Notice of Sale" or "Vehicle Sale Form" instead. Using your state's official form is the safest choice because it includes everything your state requires.
If your state does not have an official form, you can read a template from legal document sites like LawDepot, Rocket Lawyer, or even a straightforward Google search for "bill of sale template." These are usually free. You can also find templates on sites like the National Association of Secretaries of State or through your local county clerk's office.
If you prefer to write one yourself, you do not need a template at all. Write it on plain paper, include the details listed above, and have both people sign it. Courts recognize handwritten bills of sale as long as both parties signed willingly.
How to fill out and sign the bill of sale
Print the form or write it out by hand. Fill in all the blanks with accurate information — do not guess at the VIN or leave fields empty. Both the seller and buyer should read it carefully before signing. If either person finds a mistake, cross it out, write the correction above it, and both people should initial the change.
Sign and date the form in front of each other if possible. Some people have the signatures notarized (a notary public witnesses and stamps the document), which adds a layer of proof, though most states do not require it for a bill of sale. If you do use a notary, they will charge a small fee, usually $5 to $15.
Make at least two copies — one for the seller and one for the buyer. If you used a notary, ask for extra certified copies. Keep your copy in a safe place, along with any other car sale paperwork like the title transfer form or maintenance records.
State-specific rules and variations
Most states accept any bill of sale as long as it has the basic information and both signatures. However, a few states have specific requirements. Some require the bill of sale to be notarized. Others require it to be filed with the county clerk or DMV within a certain number of days. A small number of states have their own official form that you must use.
Before you print or sign, check your state's DMV website or call your local county clerk to ask: "Do you have a required bill of sale form?" and "Do I need to file it with you?" The answer takes five minutes and saves confusion later. If your state has an official form, use it. If not, any clear, signed document with the core details will work.
What happens after you sign the bill of sale
The buyer uses the bill of sale when they go to register the car with the state. They will bring it along with the title (the ownership document from the previous owner), proof of insurance, and a completed registration form. The state will issue a new title in the buyer's name.
The seller should keep their copy as proof they no longer own the car. If the buyer later has legal trouble or does not pay taxes on the vehicle, the bill of sale shows you sold it and when. This is especially important if you sold the car privately rather than to a dealer.
If either person loses their copy, you can ask the other person for theirs, or you can recreate it from memory and have both people sign it again. There is no official registry of bills of sale, so the document itself is your only proof.
Common mistakes to avoid
Do not leave the price blank or write "cash" without a number — the state needs to know the sale price for tax and title purposes. Do not skip the VIN or write it incorrectly; the buyer cannot register the car without it. Do not sign it before the buyer has read it, and do not let the buyer sign before you have read it.
Do not assume a bill of sale replaces the title transfer. The title is a separate document that proves ownership; the bill of sale is a record of the sale. You need both. Do not throw away your copy after the sale is done — keep it for at least a few years in case questions come up later.
If you are selling a car that still has a loan on it, do not sign the bill of sale until the loan is paid off and the lender releases the title. If you sell a car with an outstanding loan, the buyer cannot legally own it because the lender still has a claim on it.
Frequently Asked Questions
Can I use a bill of sale instead of transferring the title?
No. A bill of sale records that the sale happened, but the title is the legal proof of ownership. The buyer must get the title transferred into their name at the DMV or your state's equivalent office. You need both documents.
Do I have to notarize the bill of sale?
Most states do not require it, but notarizing adds proof that both people signed willingly and on the date shown. If your state does not require it, notarizing is optional. It costs a few dollars and takes a few minutes at a bank, UPS store, or notary's office.
What if the buyer and I disagree on the price later?
The bill of sale is the written record of what you both agreed to on the day of sale. If a dispute comes up, the signed bill of sale is what a court would look at. This is why it is important to write the price clearly and have both people sign.
Can I sell a car without a bill of sale?
Legally, it depends on your state. Some states require one before the buyer can register the car. Even if your state does not require it, having one protects both of you by creating a written record. It takes five minutes to write or print and sign.
What should I do with my copy after the sale?
Keep it in a safe place for at least three to five years. You may need it if questions come up about the sale, for tax records, or if the buyer later has legal problems with the car. There is no harm in keeping it longer.