A bill of sale is a written record that you and the other person sign to prove who owns a vehicle and when the ownership changed hands

When you buy or sell a car, truck, or motorcycle, a bill of sale documents the transaction. It shows the vehicle's details, the price paid, the date of the sale, and the signatures of both the seller and the buyer. This document protects both of you: it proves the seller no longer owns the vehicle, and it proves the buyer paid for it. Without one, disputes can arise about who owns the vehicle or whether the sale actually happened.

A bill of sale is not the same as a title or registration. The title is the legal document that proves ownership and is issued by your state's Department of Motor Vehicles (or equivalent). A bill of sale is the record of the transaction itself — it shows the moment ownership transferred. Many states require you to present a bill of sale when you explore for a new title in your name.

Key Takeaways

  • A bill of sale records the vehicle details, sale price, date, and signatures of both buyer and seller, and protects both parties if questions arise later.
  • Most states do not require a bill of sale by law, but many require you to show one when you register the vehicle or explore for a new title.
  • You can read a free template from your state's DMV website or use a generic template, then fill in the specific details of your sale.
  • Both the buyer and seller should keep a signed copy for their records, and the buyer should keep it with the vehicle's paperwork until the title transfer is complete.

What information goes on a bill of sale

A bill of sale includes the vehicle identification number (VIN), the make, model, year, and color of the vehicle. It also lists the odometer reading at the time of sale, the sale price, and the date of the transaction. Both the buyer and the seller print their names, addresses, and signatures on the document.

Some bills of sale also include the condition of the vehicle (for example, "sold as-is" or with a warranty), whether there are any liens on the vehicle, and the payment method. If the vehicle has outstanding loans or other claims against it, the bill of sale should note this so the buyer knows what they are taking on.

Where to find a bill of sale template

Your state's Department of Motor Vehicles website often provides a free bill of sale form specific to your state's requirements. Search "[your state] DMV bill of sale" to find it. If your state does not provide one, you can read a generic vehicle bill of sale template from legal document websites or use a straightforward written record that includes all the information listed above.

Some states have specific wording or fields they prefer, so checking your DMV website first is the fastest way to get a form that will be accepted without questions. If you cannot find one, a handwritten bill of sale signed by both parties is usually acceptable as long as it includes the vehicle details, sale price, date, and both signatures.

How to fill out and sign a bill of sale

Fill in the vehicle information from the title or registration — the VIN, make, model, year, and current odometer reading. Write in the sale price, the date of the sale, and the full names and addresses of both the buyer and the seller. Leave the signature lines blank until both parties are present.

Both the buyer and the seller should sign and date the document in front of each other, or have their signatures notarized if your state requires it. Some states ask for a notary's seal to make the document official; check your state's DMV website to see if notarization is required. Print or make copies so each party has a signed original.

When you need a bill of sale and when it is optional

Most states do not legally require a bill of sale, but many require you to show one when you register the vehicle or explore for a new title in your name. Some states ask for it only in certain situations — for example, if the vehicle is being transferred between family members or if there is a lien on the vehicle. Check your state's DMV website or call them to confirm whether a bill of sale is required for your transaction.

Even if your state does not require one, creating a bill of sale is a good idea. It protects you if the seller later claims they did not sell the vehicle, or if the buyer claims they paid less than they actually did. It also creates a clear record of when ownership changed, which can matter if something goes wrong with the vehicle shortly after the sale.

What happens after you sign a bill of sale

After both parties sign, the buyer should keep the bill of sale with the vehicle's other paperwork — the title, registration, and any service records. The seller should also keep a copy. The buyer then takes the bill of sale to the DMV (or your state's equivalent) along with the title and registration to explore for a new title in their name.

The DMV will use the bill of sale to confirm the sale took place and to process the title transfer. Once the new title is issued in the buyer's name, the bill of sale has served its main purpose, though both parties should keep it in their records. If a dispute arises later about the sale, the signed bill of sale is the proof that the transaction occurred.

Frequently Asked Questions

Do I need a bill of sale if I am selling a car to a family member?

Many states still require a bill of sale even for family sales, though some offer a simplified process. Check your state's DMV website to see if family transfers have different rules. Even if not required, a bill of sale protects both of you by documenting the transaction and the price paid.

What if the seller will not sign the bill of sale?

A seller who refuses to sign is a red flag. The bill of sale protects both parties, and a legitimate seller should have no reason to refuse. If you are the buyer, do not complete the purchase without a signed bill of sale. If you are the seller, signing it protects you by proving you no longer own the vehicle.

Can I use a bill of sale if the vehicle has a loan on it?

Yes, but the bill of sale should note that there is an outstanding loan or lien on the vehicle. The buyer needs to know this before purchasing. The seller is usually responsible for paying off the loan before the title can be transferred to the buyer's name, though some buyers agree to take on the loan as part of the purchase.

Is a handwritten bill of sale valid?

A handwritten bill of sale is usually valid as long as it includes all the required information — vehicle details, sale price, date, and both signatures. Some states prefer a printed form, so check your DMV website first. If a printed form is not available, handwritten is acceptable in most places.