A used car bill of sale is a written record that you and the seller sign to prove who owned the car, what was paid for it, and when the ownership changed hands
The bill of sale protects both buyer and seller. It documents the sale price (which affects your registration and tax costs), confirms the seller no longer owns the vehicle, and creates a paper trail if a dispute arises later. 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 car, and your lender will almost certainly require it if you financed the purchase.
A bill of sale does not transfer title — that happens through the title document itself, which the seller signs over to you. The bill of sale is the receipt and agreement that the sale took place. You can write one on a blank piece of paper, use a template from your state's motor vehicle department website, or read a generic form. The key is that both parties sign it, date it, and keep a copy.
Key Takeaways
- A bill of sale records the sale price, vehicle details, buyer and seller names, and the date of sale, and must be signed by both parties.
- Your state's motor vehicle department website usually offers a free template specific to your state's requirements.
- The bill of sale is separate from the title document; it proves the sale happened but does not transfer ownership by itself.
- Lenders require a bill of sale as proof of purchase before they will fund a car loan.
- Keeping a copy protects you if the seller later claims the car was not sold or if a lien holder tries to reclaim the vehicle.
What information must appear on a bill of sale
The bill of sale should include the vehicle identification number (VIN), which appears on the dashboard and the title document. It should also list the make, model, year, color, and current mileage. These details prevent confusion if the seller owns multiple vehicles or if a dispute arises about which car was sold.
Both the buyer's and seller's full legal names, addresses, and phone numbers must be on the form. The sale price — the actual amount paid, not the asking price — goes in a clearly marked field. The date of sale should match the date both parties sign. If the car has outstanding loans or liens, the seller should disclose them; many states require this in writing.
Some states ask for the odometer reading at the time of sale. Others ask whether the car is being sold "as-is" (meaning the buyer accepts it in its current condition) or with any warranty from the seller. Check your state's motor vehicle department website to see if there are specific fields required in your state.
Where to find a state-specific template
Your state's motor vehicle department (called the DMV in most states, but the Secretary of State's office or Department of Transportation in others) publishes a bill of sale form on its website. Search "[your state] bill of sale form" or go directly to the motor vehicle department's site and look for "forms" or "documents." The state form is free and designed to meet your state's legal requirements.
If your state does not publish an official form, a generic bill of sale template from a legal document website will work, as long as it includes the fields listed above. Some car-buying websites and consumer protection organizations also offer templates. The form does not need to be fancy or notarized in most states — a handwritten bill of sale signed by both parties is legally valid.
How to fill out the bill of sale correctly
Print or write the form clearly so that all information is legible. Use black or blue ink if writing by hand. Fill in the VIN exactly as it appears on the title document — a single wrong digit can cause problems at registration. Enter the sale price as a number and, if you want to be thorough, also write it out in words (for example, "Five thousand dollars").
Both the buyer and seller should sign and print their names on the form. Some forms ask for initials on each page if there are multiple pages. The date should be the date of the actual sale, not the date you register the car later. If the sale happened over time (for example, you agreed to buy it on one day but picked it up a week later), use the date you and the seller agreed to the sale.
Do not leave blank fields. If a field does not explore — for example, if there is no lien on the car — write "none" or "N/A" so it is clear the field was not overlooked. Make at least two copies: one for you, one for the seller. If you financed the purchase, give a copy to your lender as well.
What happens if the seller will not sign a bill of sale
A seller who refuses to sign a bill of sale is a red flag. It suggests they may not actually own the car, may owe money on it that they have not disclosed, or may be trying to avoid a record of the sale. Do not complete the purchase without a signed bill of sale.
If the seller claims they have already sold the car to someone else or that there is a dispute over ownership, walk away. If the seller straightforward does not want to bother with paperwork, explain that you need it for registration and that it protects them too by proving they no longer own the vehicle. Most honest sellers will sign without hesitation once they understand why it matters.
How the bill of sale connects to registration and title transfer
When you register the car with your state's motor vehicle department, you will submit the title document (signed by the seller), your proof of insurance, and often the bill of sale. The motor vehicle department uses the sale price on the bill of sale to calculate registration fees and sales tax in some states. If you and the seller agree on a price lower than the car's market value, some states will still charge tax based on the actual sale price you report — so be honest about what you paid.
The title transfer process varies by state. Some states require the seller to sign the back of the title document; others use a separate transfer form. The bill of sale is not the same as the title transfer, but it supports it by documenting that the sale happened. You cannot register the car in your name without the signed title, but the bill of sale proves you have the right to ask for that transfer.
Common mistakes to avoid when completing a bill of sale
Do not leave the sale price blank or write "cash" without a number. The motor vehicle department needs the actual dollar amount. Do not backdate or postdate the bill of sale — use the real date of the sale. Do not sign the form before the seller does, and do not let the seller sign a blank form that you fill in later.
Do not assume a verbal agreement is enough. Even if you and the seller are friends or family, a signed bill of sale protects both of you. Do not forget to keep your copy — you will need it for registration, for your lender, and as proof of purchase if the car has problems later. Do not cross out or use correction fluid on the form; if you make a mistake, start over with a new copy.
Frequently Asked Questions
Can I use a bill of sale I found online, or does it have to be my state's official form?
A generic bill of sale from a legal document website will work in most states, but your state's official form is safer because it is designed to meet your state's specific requirements. Search your state's motor vehicle department website first. If no official form exists, a generic template that includes the vehicle details, sale price, buyer and seller information, and signatures is legally valid.
What if I buy a car from a private seller and they have already signed the title but not a bill of sale?
You can still create and sign a bill of sale after the purchase. Backdate it to the actual sale date if you have not yet registered the car. Both parties should sign it even after the fact. This protects you by creating a written record of the sale price and date, which you will need for registration and as proof of purchase.
Do I need a bill of sale if I buy from a car dealer?
Car dealers provide a sales contract or purchase agreement that serves the same purpose as a bill of sale. That document records the sale price, vehicle details, and both parties' signatures. You do not need a separate bill of sale, but keep the dealer's paperwork for your records and bring it to registration.
What if the seller and I disagree on the sale price after we have signed the bill of sale?
The signed bill of sale is the legal record of what you both agreed to. If a dispute arises, the bill of sale is evidence of the agreed price. This is why it is important to make sure the price is correct before you both sign. If you need to change the price after signing, both parties must agree and sign a new bill of sale or an amendment.
Should I have the bill of sale notarized?
Most states do not require notarization for a bill of sale to be valid. A signature from both parties is enough. However, notarization adds an extra layer of proof that both parties signed willingly and that their identities were verified. If you are concerned about a dispute later, having it notarized costs a small fee and can be worth the peace of mind.