A bill of sale is a written record that proves who owned a car and who owns it now
A bill of sale is a document that shows a car has changed hands from one owner to another. It lists the seller, the buyer, the vehicle details (make, model, year, and VIN), the sale price, and the date of the transaction. Both the seller and buyer sign it. The document creates a paper trail — proof that you bought the car and proof that the previous owner no longer has a claim to it.
You need a bill of sale because it protects you legally. If the seller later claims the car was stolen, or if they fail to transfer the title properly and the car gets repossessed, your bill of sale shows you bought it in good faith. It also protects the seller by documenting that they received payment and transferred ownership. Without one, either party can dispute what happened, and you have no written evidence to back up your story.
A bill of sale is not the same as a title. The title is the official government document that says who legally owns the car — it's issued by your state's Department of Motor Vehicles or equivalent agency. The bill of sale is the private agreement between you and the seller that comes before the title transfer. You use the bill of sale to prove the transaction happened so you can then explore for a new title in your name.
Key Takeaways
- A bill of sale documents the sale of a car and protects both buyer and seller by creating a written record of the transaction, price, and date.
- You need a bill of sale before you can transfer the title into your name at your state's Department of Motor Vehicles.
- The bill of sale should include the VIN, make, model, year, sale price, both signatures, and the date — anything less leaves gaps in the record.
- Your state may have a specific bill of sale form, or you can use a generic template, but always check your state's requirements before signing.
- The seller should keep a copy and the buyer should keep a copy; losing your copy makes it harder to prove the transaction later.
What information goes on a bill of sale
A bill of sale should include the seller's full name and address, the buyer's full name and address, and the date of the sale. It must have the vehicle's year, make, model, color, and most importantly, the Vehicle Identification Number (VIN) — a 17-character code unique to that car. The VIN is what ties the document to the actual vehicle, so without it the bill of sale is nearly useless.
The document should also state the sale price and how payment was made (cash, check, financing, trade-in, or a combination). Some states require you to note whether the car is sold "as-is" or with any warranties. Both the seller and buyer must sign and date the document. Some states also require a notary to witness the signatures, though this is not universal — check your state's Department of Motor Vehicles website to see if notarization is required where you live.
If the car has a lien on it (meaning a bank or lender still owns part of it), the bill of sale should note the lender's name and the loan payoff amount. This tells the buyer that the seller cannot transfer a clean title until the loan is paid off, and it protects the buyer from inheriting a debt they did not know about.
State-specific bill of sale forms
Many states provide an official bill of sale form on their Department of Motor Vehicles website. Using your state's form is the safest choice because it includes all the language and fields that your state's DMV expects to see when you submit it with your title transfer process. Some states make the form mandatory; others accept any bill of sale as long as it contains the required information.
If your state does not provide a form, or if you prefer to use a generic template, you can find bill of sale templates online through legal document websites or your state's DMV site. The template should be specific to your state because requirements vary — for example, some states require notarization and others do not, and some states ask for odometer readings while others do not.
Before you sign anything, visit your state's Department of Motor Vehicles website and search for "bill of sale" or "vehicle sale form." If an official form exists, read it and use that. If not, find a template labeled for your state and review it against your state's DMV requirements. Spending 10 minutes on this step prevents problems later when you try to transfer the title.
When you need a bill of sale and when you do not
You need a bill of sale whenever you buy or sell a car privately — that is, when the transaction is between two individuals, not through a dealership. If you buy a car from a dealership, the dealership handles the paperwork and provides their own sales agreement, which serves the same purpose as a bill of sale.
You also need a bill of sale if you receive a car as a gift, even though no money changes hands. The document in this case shows the transfer of ownership and protects both the giver and the receiver. Some states call this a "gift letter" instead of a bill of sale, but it serves the same function — it proves the car was transferred intentionally and legally.
You do not need a bill of sale if you inherit a car through a will or estate. In that case, you will need a copy of the will or a court document proving your inheritance, which you submit to the DMV instead. Similarly, if you are transferring a car between spouses or family members as part of a divorce or estate settlement, your state may have a specific form for that situation — check with your DMV before assuming a standard bill of sale is sufficient.
How to fill out and sign a bill of sale
Start by getting the correct form for your state. Print it or open it on a device where both you and the other party can see it. Fill in the seller's information first — full legal name, address, and phone number. Then fill in the buyer's information the same way. Write out the vehicle details carefully: the year, make, model, color, and VIN. Copy the VIN directly from the car's registration or from the driver's side door jamb; do not rely on memory or a verbal description.
Enter the sale price in both numbers and words (for example, "$5,000" and "Five Thousand Dollars"). Write the date of the sale. If your state requires it, note the odometer reading. If the car is sold as-is, write that clearly. If there are any warranties or promises from the seller, write those too — do not leave them out and assume they are understood.
Both the seller and buyer should sign and print their names on the document. If your state requires notarization, take the signed document to a notary public (usually available at banks, UPS stores, or online) and have them witness both signatures. Each party should keep a copy — do not rely on the other person to keep it safe for you. Take a photo of your copy with your phone as a backup.
What happens after you sign the bill of sale
After both parties sign, the buyer takes the bill of sale to their state's Department of Motor Vehicles along with the seller's title and any other documents the state requires (such as a lien release if there was a loan on the car). The DMV uses the bill of sale to verify that the transaction is legitimate and then issues a new title in the buyer's name.
The seller should also notify their insurance company and the DMV that they no longer own the car, so they are not held responsible if the car is involved in an accident or receives a traffic ticket after the sale. Some states have a form for this; others ask you to straightforward return your plates or note the sale on your registration.
The buyer should not drive the car on public roads until they have received the new title and registered it. Driving an unregistered vehicle is illegal in all states. The time it takes to receive a new title varies by state — it can be anywhere from a few days to several weeks — so plan accordingly if you need to drive the car when ready.
Common mistakes to avoid when writing a bill of sale
The most common mistake is leaving the VIN blank or writing it incorrectly. The VIN is what ties the bill of sale to the actual car, so if it is wrong or missing, the DMV may reject the document or issue a title for the wrong vehicle. Copy it directly from the title or the car itself, character by character.
Another mistake is not having both parties sign. A bill of sale signed by only one person is not a valid record of a transaction — it looks like one person wrote it to themselves. Both the seller and buyer must sign, and both should keep a copy.
Leaving the sale price blank or writing "cash" instead of an amount is also a problem. The DMV needs to know the sale price because some states use it to calculate sales tax or to flag unusually low prices that might indicate fraud. Write the actual amount, even if you negotiated a lower price than the car's market value.
Finally, do not skip notarization if your state requires it. If your state's DMV website says the bill of sale must be notarized and you submit one that is not, the DMV will reject it and you will have to start over. Check your state's requirements before you sign anything.
Frequently Asked Questions
Can I use a bill of sale from the internet, or do I have to use my state's form?
Most states accept any bill of sale as long as it contains the required information, but using your state's official form is safer because it is designed to meet your state's specific requirements. Check your state's DMV website first — if an official form exists, use that. If not, use a template labeled for your state.
What if the seller will not sign the bill of sale?
Do not buy the car. A seller who refuses to sign a bill of sale is a major red flag. It suggests they may not actually own the car, or they are trying to hide something. A legitimate seller will sign without hesitation because it protects them too.
Do I need to get the bill of sale notarized?
It depends on your state. Some states require notarization; others do not. Check your state's Department of Motor Vehicles website or call them to ask. If notarization is required and you submit a bill of sale without it, the DMV will reject it.
What if I lose my copy of the bill of sale after I buy the car?
If you have already transferred the title into your name, losing your copy is not an emergency — the DMV has a record of the transaction. But if you need to prove you bought the car (for insurance, warranty, or legal reasons), you can request a copy from the seller or ask the DMV if they keep copies on file.
Can I write a bill of sale on a napkin or piece of paper?
Technically yes, but do not. Use an official form or a template. A handwritten napkin may not be accepted by the DMV, and it looks unprofessional and suspicious. A proper bill of sale takes five minutes to fill out and protects both you and the seller.