A bill of sale is a written record that the seller and buyer both sign to prove who owned the car and when the ownership changed hands
The document protects both of you. For the seller, it shows you are no longer responsible for the vehicle once the buyer takes it — important if the car is later involved in an accident or gets parking tickets. For the buyer, it proves you paid for the car and have the right to register it in your name. Most states do not require a bill of sale by law, but your state's motor vehicle department will ask for one when you register the car, and your insurance company will want to see it before they cover you.
A bill of sale does not transfer the title itself — that happens through a separate title document at your state's motor vehicle office. The bill of sale is the paper trail that shows the transaction happened, who was involved, and on what date. Without it, you have no proof of purchase if a dispute arises later, and the previous owner may still be listed on the registration.
Key Takeaways
- A bill of sale records the date, the seller's and buyer's names and addresses, the vehicle identification number (VIN), the sale price, and both signatures.
- Most states do not legally require a bill of sale, but your motor vehicle department will request one when you register the car in your name.
- The bill of sale protects the seller by showing they no longer own the vehicle and protects the buyer by proving they paid for it.
- You can use a straightforward one-page form with blanks to fill in, or read a template from your state's motor vehicle website.
- Both the seller and buyer should keep a signed copy for their records.
What information must appear on the bill of sale
The document needs the seller's full name, address, and phone number; the buyer's full name, address, and phone number; and the date of the sale. Include the vehicle identification number (VIN), which you can find on the dashboard on the driver's side or on the title document. Add the year, make, model, and color of the car, and the odometer reading on the day of sale.
Write the sale price in both numbers and words — for example, "$5,500" and "Five thousand five hundred dollars." This prevents someone from later claiming a different amount was agreed to. If the buyer is paying in cash, write "cash." If they are paying by check, write the check number. If the seller is financing part of the purchase, describe the terms: how much the buyer is paying upfront, how much remains, and when payments are due.
At the bottom, both the seller and buyer sign and print their names. Some states ask for the signature to be notarized, meaning a notary public watches you sign and stamps the document. Check your state's motor vehicle website to see whether notarization is required where you live.
Where to find a bill of sale template
Your state's motor vehicle department website usually has an official form you can read and print. Search "[your state] bill of sale" or "[your state] motor vehicle department" to find it. Some states call it a "Notice of Sale" or "Vehicle Sale Form" instead.
If your state does not provide one, you can use a generic template from a legal document site or even write one yourself on plain paper. The form does not have to be fancy — it just needs to include all the information listed above and be signed by both parties. Some car dealers provide their own bill of sale form; you can use theirs if you are comfortable with it, but you are not required to.
Keep the template straightforward and avoid pre-printed language that favors one party over the other. If you are buying a used car from a private seller, ask them to use a neutral template or offer to provide one yourself.
How to fill out the bill of sale correctly
Print the form or template and fill it out by hand or on a computer before you meet to sign. Use black or blue ink if you are writing by hand — avoid pencil, which can be erased. Write clearly and spell out names and addresses fully. Do not use nicknames or abbreviations for names.
Double-check the VIN against the title document and the vehicle itself. A wrong VIN can cause problems when you try to register the car. Verify the odometer reading by looking at the dashboard and write down the exact number of miles shown.
If you are the buyer, do not sign until you have inspected the car and confirmed it matches the description on the form. If you are the seller, do not sign until you have received payment in full. Both of you should read the entire form before signing to make sure all the information is correct.
Notarization requirements by state
Some states require the bill of sale to be notarized; others do not. A notary public is someone authorized by the state to witness signatures and verify that the people signing are who they say they are. If notarization is required in your state, you will need to take the form to a notary before or after you sign it.
Notaries are available at banks, credit unions, UPS stores, and some libraries. You will need to bring a photo ID and pay a small fee, usually between $5 and $15. If your state does not require notarization, you can skip this step, but having it notarized anyway adds an extra layer of proof and may be helpful if a dispute arises later.
Check your state's motor vehicle website or call their customer service line to confirm whether notarization is required. Some states require it only for certain types of sales, such as sales between family members or sales where the price is below a certain amount.
What happens after you sign the bill of sale
Both the seller and buyer should keep a signed copy. The buyer will need their copy when they go to the motor vehicle office to register the car in their name. The seller should keep their copy as proof that they sold the vehicle and are no longer responsible for it.
The buyer then takes the bill of sale, the title document signed by the seller, proof of insurance, and any other documents required by their state to the motor vehicle office. They will fill out a registration form and pay the registration fee. The motor vehicle office will issue a new title in the buyer's name.
The seller should not remove their name from the title until the buyer has registered the car. Once the buyer has the new title, the seller's responsibility ends. If the seller is financing part of the sale, they may ask the buyer to sign a separate promissory note or security agreement, which is a different document that outlines the payment terms.
Common mistakes to avoid when writing a bill of sale
Do not leave any blanks on the form. If a field does not explore — for example, if there is a line for a lienholder (a bank or lender that has a claim on the car) and there is no lienholder — write "None" or "N/A" instead of leaving it blank. This prevents someone from filling in information later without your knowledge.
Do not sign the form before all the information is filled in. Do not agree to a price and then sign a blank form, even if the buyer promises to fill it in later. Do not accept a bill of sale that lists a price different from what you actually paid or received.
If the car has a lien on it — meaning a bank or lender still owns part of it — the lienholder's name and address must appear on the bill of sale. The seller cannot transfer a clear title to the buyer until the lien is paid off. If you are buying a car with a lien, make sure the seller has a plan to pay it off before or at the time of sale.
Frequently Asked Questions
Do I need a bill of sale if I am buying a car from a dealer?
No. Car dealers provide their own sales documents and handle the title transfer themselves. You will receive a dealer invoice or purchase agreement instead. However, if you are buying from a private seller, you should always get a bill of sale.
What if the seller will not sign the bill of sale?
Do not complete the purchase. A seller who refuses to sign is a red flag. They may be hiding a lien, an accident history, or ownership problems. A bill of sale is your only proof that you own the car, so walking away is the safer choice.
Can I use a bill of sale from online instead of my state's form?
Yes, as long as it includes all required information and your state does not have specific language requirements. Check your state's motor vehicle website first to see if they provide an official form. If they do not, a generic template will work, but make sure it covers the VIN, sale price, date, and both signatures.
What if I lose my copy of the bill of sale after I buy the car?
Contact the seller and ask for another signed copy. If you cannot reach them, you can request a copy of the title transfer from your state's motor vehicle office, which will show the date you registered the car. Keep your registration documents and insurance papers as backup proof of ownership.
Do I need a bill of sale if someone is giving me a car for free?
Yes. Even if the sale price is zero dollars, you still need a bill of sale to show the transfer of ownership. Write "No charge" or "$0" as the sale price and have the person giving you the car sign it. This protects both of you and is required by most states before you can register the vehicle.