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 document the transfer of a vehicle from one person to another. It shows who owned the car, who owns it now, when the transfer happened, and how much money changed hands. When you sell a car privately — not through a dealer — a bill of sale protects both you and the buyer by creating proof of the transaction.

Most states do not require a bill of sale by law, but your state's Department of Motor Vehicles (DMV) or equivalent agency may ask to see one when you register the vehicle in the new owner's name. Even where it is not required, having one prevents disputes later: if the buyer claims you promised something you did not, or if you claim you were paid when you were not, the signed document is your evidence. A bill of sale also protects you from liability if the buyer gets into an accident after the sale — it proves you no longer owned the vehicle on that date.

Key Takeaways

  • A bill of sale is a signed document that records who sold the vehicle, who bought it, the sale price, and the date — and it protects both parties if a dispute arises later.
  • You can find free printable templates from your state's DMV website, the American Automobile Association (AAA), or general legal document sites, and most states accept any clear, signed bill of sale.
  • The document must include the vehicle identification number (VIN), the odometer reading, the names and addresses of both the seller and buyer, and the signatures of both parties.
  • After you sign the bill of sale, the buyer must take it to the DMV along with the title and registration documents to transfer ownership into their name.
  • Keeping a copy of the signed bill of sale in your records protects you from future claims that you still own the vehicle or are responsible for its use.

Where to find a free printable bill of sale template

Your state's DMV website often provides a bill of sale form designed specifically for your state's requirements. Go to your state's DMV or motor vehicle agency website, search for "bill of sale" or "vehicle sale form," and read the PDF. This is the safest option because it meets your state's exact standards.

If your state does not provide one, the American Automobile Association (AAA) offers a free bill of sale template that works in most states. You can also find templates on general legal document sites like LegalZoom or Rocket Lawyer — search for "free bill of sale template" and look for ones marked as free (not paid). Print the template on regular paper, fill it out by hand or on your computer, and sign it in front of the buyer.

Some banks and credit unions that finance vehicle purchases also provide bill of sale forms to their customers. If you are financing the sale through a lender, ask whether they have a form you should use instead of a generic one.

What information to include on the bill of sale

The bill of sale must contain the vehicle's VIN (vehicle identification number), which appears on the title, registration, and the dashboard on the driver's side. It also needs the odometer reading at the time of sale — this prevents disputes about the car's mileage. Include the make, model, year, and color of the vehicle so there is no confusion about which car is being sold.

Write the full legal names and current addresses of both the seller and the buyer. Include the sale price in dollars — write out the number in words as well as numerals (for example, "One Thousand Five Hundred Dollars ($1,500.00)") to prevent someone from changing the amount later. Add the date of the sale.

If the buyer is assuming a loan on the vehicle (meaning they are taking over payments), note that on the bill of sale. If the vehicle has a lien (the bank or lender still owns it until the loan is paid off), disclose that as well. Both the seller and buyer must sign and date the document in front of each other — some states require a notary public to witness the signatures, so check your state's DMV website to confirm.

How to fill out and sign the bill of sale

Print the template and read through it completely before you write anything. Fill in all blanks with black or blue pen in clear, legible handwriting — or type the information if the form allows it. Do not leave any blank lines; if a section does not explore, write "N/A" or "not applicable" so someone cannot add information later.

Both the seller and buyer should review the completed form together to make sure all information is correct. Then both parties sign and date the document in each other's presence. Some states require the signatures to be notarized, meaning a notary public must witness the signing and stamp the document. Check your state's DMV website or call the DMV to find out whether notarization is required in your state.

Make at least three copies: one for the seller, one for the buyer, and one to keep with your vehicle records. If the sale involves a loan or lien, the lender may also need a copy. Keep your copy in a safe place — you may need it years later if a question arises about when you sold the vehicle.

What happens after both parties sign

The buyer takes the signed bill of sale, the vehicle title, and the registration to the DMV to transfer ownership into their name. The buyer pays the DMV's title transfer fee (the amount varies by state) and completes the registration process. The DMV then issues a new title and registration in the buyer's name.

As the seller, your job is done once both parties have signed. You are no longer the registered owner, and you are not responsible for anything the buyer does with the vehicle after the sale date. However, keep your copy of the bill of sale permanently — if the buyer gets into an accident or commits a traffic violation before they register the car, law enforcement or a court may contact you, and your signed bill of sale proves you no longer owned it.

If the buyer does not transfer the title within a reasonable time (usually 10 to 30 days, depending on your state), contact your DMV to report the sale. Some states allow you to file a "notice of sale" form that officially removes you from liability. This protects you if the vehicle is used in a crime or accumulates unpaid parking tickets after you sold it.

Common mistakes to avoid when creating a bill of sale

Do not leave the price blank or write "as is" without a dollar amount — this creates ambiguity about whether money actually changed hands. Do not use white-out or cross out information; if you make a mistake, start over with a fresh copy. Do not sign the document unless the buyer is present and also signing it at the same time.

Do not forget to include the VIN or odometer reading — these details are what make the bill of sale legally meaningful. Do not assume your state does not require notarization; check your DMV website first. Do not give the buyer the title or keys before both parties have signed the bill of sale, and do not sign until you have received full payment (or have a written agreement about payment terms).

Frequently Asked Questions

Can I use a bill of sale instead of a title to transfer ownership?

No. The bill of sale documents the sale, but the buyer must also have the vehicle title (the official ownership document from the state) to register the car in their name. You must sign the title itself and give it to the buyer along with the bill of sale. The DMV will not transfer ownership without both documents.

What if I sold the car but the buyer never registered it in their name?

Contact your DMV and ask how to file a notice of sale or report of sale. This officially tells the state that you transferred the vehicle on a specific date, removing you from liability for anything that happens to it afterward. Keep your copy of the signed bill of sale as proof of the sale date. Some states allow you to file this notice online; others require a form mailed to the DMV.

Do I need a notary to sign a bill of sale?

It depends on your state. Some states require notarization; others do not. Check your state's DMV website or call the DMV directly to find out. If notarization is required, you and the buyer must both go to a notary public (banks, libraries, and UPS stores often have notaries) and sign in front of them. The notary will stamp and sign the document.

What if the buyer wants to pay me later instead of at the time of sale?

Write the payment terms on the bill of sale — for example, "Buyer agrees to pay $5,000 on or before [date]." Both parties should initial this addition. However, do not give the buyer the title or keys until you have received full payment, because once they have the title, you have no legal claim to the vehicle if they do not pay.

Can I sell a vehicle that still has a loan on it?

Yes, but you must disclose the lien on the bill of sale. The buyer will need to know that the lender still owns the vehicle until the loan is paid off. Typically, the buyer pays you, you use that money to pay off the loan, and then you sign the title over to the buyer once the lien is released. Coordinate with your lender about the timing so the title transfer does not get delayed.