What a Vehicle Bill of Sale Form Does

A vehicle bill of sale is a document that records the transfer of ownership when one person sells a car, truck, motorcycle, or other vehicle to another. It serves as proof that money changed hands and that the seller no longer owns the vehicle. 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 for one when you register the vehicle in the new owner's name. Even when it is not required, creating one protects both the buyer and seller by documenting the sale date, the vehicle details, the sale price, and the signatures of both parties.

The bill of sale is separate from the vehicle title — the legal document that proves ownership. The title stays with the vehicle and transfers to the new owner through the DMV. The bill of sale is a record you keep for your own protection and to show the DMV if asked.

Key Takeaways

  • A bill of sale documents the sale price, vehicle details, and both parties' signatures, and protects both buyer and seller even when your state does not require one.
  • You can read a blank form from your state's DMV website, use a template from a legal document site, or write one yourself on plain paper — the format matters less than the content.
  • The seller should keep one signed copy and the buyer should keep another; the buyer may also need to bring a copy to the DMV when registering the vehicle.
  • A bill of sale does not transfer the title itself — the title transfers through the DMV registration process, and the bill of sale is supporting documentation.

Where to Find a Bill of Sale Form

Your state's DMV website usually offers a free blank form you can read and print. Search "[your state] DMV bill of sale" to find it. If your state does not provide one, you can read a template from legal document sites such as LegalZoom, Rocket Lawyer, or even Google Docs templates. These are generic forms that work in most states.

You do not have to use an official form. A bill of sale can be handwritten on plain paper or typed in a word processor, as long as it includes the required information and both parties sign it. Many people straightforward write out the details, print it, and sign it by hand. The key is that the document clearly shows what was sold, for how much, and who signed off on the transaction.

What Information to Include on the Form

Fill in the following details on your bill of sale:

  • Date of sale — the day the money changed hands.
  • Seller's name and address — the person or business selling the vehicle.
  • Buyer's name and address — the person or business buying the vehicle.
  • Vehicle year, make, and model — for example, 2015 Honda Civic.
  • Vehicle Identification Number (VIN) — a 17-character code found on the dashboard or in the vehicle's paperwork.
  • Odometer reading — the mileage at the time of sale.
  • Sale price — the amount paid, written as a number and spelled out in words (for example, "$5,000 (Five Thousand Dollars)").
  • Condition of the vehicle — whether it is sold as-is, with or without warranty, or with any known defects disclosed.
  • Signatures of both parties — handwritten signatures, not printed names.

Some forms also ask for the license plate number, the odometer statement (a legal declaration that the mileage is accurate), and whether the sale includes any warranties. Check your state's DMV website to see if there are specific fields required in your state.

How to Sign and Notarize the Form

Both the seller and buyer must sign the bill of sale in front of each other. Use a pen and sign by hand — do not print your signature. The signature proves that you agreed to the terms and were present for the transaction.

Notarization is not required in most states, but some states ask for it or recommend it. A notary is a person authorized by the state to witness signatures and verify identity. If your state requires notarization, you can find a notary at a bank, UPS Store, FedEx Office, or courthouse. Bring a photo ID and both parties should be present. The notary will watch you sign, check your ID, and stamp the document. There is usually a small fee, typically $5 to $15 per signature.

If notarization is not required in your state, you can skip this step. The signatures of both parties alone are sufficient.

What Happens After You Sign

Once both parties have signed, make at least two copies — one for the seller and one for the buyer. The buyer should keep their copy in a safe place, because they may need to show it to the DMV when they register the vehicle. The seller should also keep a copy for their records, in case there are questions later about when they sold the vehicle or what condition it was in.

The buyer then takes the bill of sale, the signed title, and any other documents required by their state's DMV to register the vehicle in their name. The DMV will not take the bill of sale — it stays with the buyer — but they may ask to see it as proof that the sale took place. The title is what actually transfers ownership; the bill of sale is supporting documentation.

The seller should not sign over the title until the bill of sale is complete and signed. Once the title is signed, the seller has legally transferred ownership, even if the buyer has not yet registered it with the DMV.

When You Might Not Need a Bill of Sale

Some states do not require a bill of sale at all. You can check your state's DMV website to see whether one is mandatory. However, even if your state does not require it, creating one is a good idea because it protects both parties. If a dispute arises later — for example, if the buyer claims the seller did not disclose a mechanical problem, or if the seller claims the buyer never paid — the bill of sale is proof of what was agreed to and when.

If you are trading in a vehicle at a dealership, the dealership will handle the paperwork and you will not need a separate bill of sale. The dealership's paperwork serves the same purpose.

Common Mistakes to Avoid

Do not leave the sale price blank or write "as-is" without clarifying what that means. The price is important because it affects taxes and registration fees, and it is proof that money actually changed hands. If the buyer is paying in installments, write that down — for example, "$3,000 down payment, $2,000 due on [date]."

Do not forget to include the VIN. The VIN is how the DMV matches the bill of sale to the actual vehicle, and it prevents confusion if you have sold multiple vehicles. You can find the VIN on the dashboard (visible through the windshield on the driver's side), on the title, or in the vehicle's registration paperwork.

Do not sign the title until the bill of sale is complete and both parties have signed it. Once you sign the title, ownership transfers when ready, even if the buyer has not paid yet or has not registered the vehicle. If the buyer later refuses to pay or disappears, you will have a hard time proving you still own the vehicle.

Frequently Asked Questions

Can I sell a vehicle without a bill of sale?

In most states, yes — a bill of sale is not legally required. However, it is strongly recommended because it protects both you and the buyer by documenting the sale price, the vehicle details, and the date. Without one, there is no proof the transaction took place if a dispute arises later.

What if I do not know the exact sale price?

Write down the actual amount that changed hands, even if it was a partial payment or a trade-in. If the buyer is paying over time, write the total price and note the payment schedule. If you are unsure, ask the buyer to confirm the amount before you both sign.

Do I need to notarize the bill of sale?

Notarization is required in some states and optional in others. Check your state's DMV website to see whether it is required. If it is not required but you want extra protection, you can have it notarized anyway for a small fee.

What if the buyer wants to pay me later?

Write the payment terms on the bill of sale — for example, "$8,000 due by [date]" or "$4,000 down, $4,000 due 30 days after sale." Both parties should initial or sign next to this note. Do not sign the title until you have received full payment, because once the title is signed, the vehicle legally belongs to the buyer even if they have not paid you.

Can I use a bill of sale to sell a vehicle with a loan on it?

A bill of sale alone does not transfer a vehicle that has a loan. The lender holds the title until the loan is paid off. The seller must pay off the loan first, get the title from the lender, and then use the bill of sale to transfer ownership to the buyer. If the buyer is paying off the loan as part of the purchase, that arrangement should be written clearly on the bill of sale and handled through the lender.