A bill of sale is the written record that proves you bought or sold a vehicle
An auto bill of sale is a document you create and sign when you transfer ownership of a car, truck, or motorcycle from one person to another. It records who owned the vehicle, who owns it now, when the transfer happened, and how much money changed hands. You do not need a lawyer to write one — you can use a template, fill in the blanks by hand, and sign it in front of a witness.
The bill of sale protects both the buyer and the seller. For the seller, it proves they no longer own the vehicle and are not responsible for what happens to it after the sale. For the buyer, it documents the purchase price, which matters for insurance, registration, and taxes. Most states do not require a bill of sale by law, but your state's motor vehicle department may ask for one when you register the vehicle in your name, and your insurance company will almost certainly want proof of purchase before they cover it.
Key Takeaways
- A bill of sale should include the names and addresses of both the buyer and seller, the vehicle identification number (VIN), the sale price, and the date of the transaction.
- You can write a bill of sale by hand on plain paper or use a template — there is no required form unless your state specifies one.
- Both the buyer and seller should sign the document, and having a witness sign it too adds legal weight if a dispute arises later.
- Keep a copy for your records and give the other copy to the person buying or selling the vehicle.
What information must go on the bill of sale
Start with the names and addresses of both the seller and the buyer, written exactly as they appear on their driver's licenses. Include the vehicle identification number (VIN), which you can find on the dashboard on the driver's side, on the title document, or on insurance paperwork. Write down the year, make, model, and color of the vehicle so there is no confusion about which car the sale covers.
Add the sale price — the exact dollar amount that changed hands. If the buyer is paying in cash, write the amount. If they are taking out a loan or paying in installments, write the total price. Include the date of the sale and the odometer reading at the time of transfer. Some states require the odometer reading on the bill of sale; others do not, but recording it protects both parties by documenting the vehicle's condition at handoff.
Write a straightforward statement that the seller is transferring ownership to the buyer and that the buyer is accepting the vehicle in its current condition. You can use language like: "The undersigned seller hereby sells, transfers, and assigns all right, title, and interest in the above vehicle to the buyer." This makes clear that the transfer is complete and final.
How to format and sign the document
You can write a bill of sale by hand on plain paper or type it up and print it. There is no required format unless your state motor vehicle department publishes a specific form — check your state's website to see if one exists. If your state does not have an official form, a straightforward one-page document with the information above is sufficient.
Both the seller and the buyer should sign and date the document. A witness — someone who is not the buyer or seller — should also sign and print their name and address. The witness does not need to know anything about the vehicle or the sale; they just need to see both parties sign. Having a witness signature makes the document stronger if either party later disputes the sale.
Make at least two copies: one for the seller and one for the buyer. If there is a lender involved (for example, if the buyer is financing the purchase), the lender may also want a copy. Keep your copy in a safe place with your other vehicle records.
When you need a bill of sale and when you do not
Most states do not legally require a bill of sale to transfer a vehicle, but your state's motor vehicle department may ask for one when you register the vehicle or transfer the title. Some states have their own bill of sale form that they prefer or require. A few states — including Alabama, Arkansas, Kentucky, and Louisiana — have specific requirements for what must appear on a bill of sale, so check your state's motor vehicle website before you finalize the document.
Your insurance company will almost certainly ask for a bill of sale before they insure the vehicle in the new owner's name. Lenders also typically require one if the buyer is financing the purchase. Even if your state does not require it, creating one protects you: it is proof of the transaction, the price, and the condition of the vehicle at the time of sale.
What to do after both parties sign
Once both the buyer and seller have signed, each should keep a copy. The buyer will need their copy when they register the vehicle with the state motor vehicle department and when they contact their insurance company. The seller should keep their copy as proof that they no longer own the vehicle and are not liable for it.
The buyer should then take the bill of sale, the signed title document, and any other paperwork the seller provides to the state motor vehicle department to register the vehicle and transfer the title into their name. The timeline for this varies by state — some allow 10 days, others 30 — so check your state's rules. The seller should not remove their name from the title until the buyer has completed registration, because the title is the legal proof of ownership.
Common mistakes to avoid
Do not leave blanks on the bill of sale. Fill in every field, even if you have to write "not disclosed" for the sale price (though this is unusual and may raise questions with the state or an insurance company). Do not use nicknames or shortened versions of names — use the full legal names as they appear on driver's licenses and the vehicle title.
Do not sign the document unless you are certain about the sale price, the vehicle's condition, and the identity of the other party. Once signed, the bill of sale is a binding record of the transaction. If the buyer discovers major mechanical problems after the sale, they cannot use the bill of sale to force a refund unless you both agree to cancel the sale in writing.
Do not assume the bill of sale transfers the title. The bill of sale is a record of the sale; the title is the legal proof of ownership. The seller must sign the title document itself (usually on the back) to transfer ownership. The bill of sale and the signed title together complete the transfer.
Frequently Asked Questions
Do I need a witness to sign the bill of sale?
No, a witness is not required by law in most states. However, having one sign adds legal weight to the document if a dispute arises later. A witness can be anyone who is not the buyer or seller — a friend, family member, or notary public.
What if I do not know the exact sale price?
Write the amount you agreed on, even if it is a round number or includes a trade-in. If the buyer is trading in another vehicle as part of the deal, write the total sale price and note the trade-in separately. If you truly cannot agree on a price, do not sign the bill of sale until you do.
Can I use a bill of sale from the internet?
Yes. Many free templates are available online and work in most states. read one, fill in the blanks with your information, print it, and sign it. Make sure the template includes all the information listed above and matches your state's requirements if your state has specific rules.
What happens if I lose my copy of the bill of sale?
Ask the other party for another copy. If you cannot reach them, contact your state motor vehicle department — they may have a record of the registration transfer. Keep your copy in a safe place with your title and insurance documents.
Does the bill of sale have to be notarized?
No, notarization is not required in most states. A signature from both parties and a witness is enough. However, some states or lenders may prefer a notarized bill of sale, so check with your state motor vehicle department or your lender before you sign.