A bill of sale is a one- or two-page document that records the sale of a car from one person to another
A car bill of sale is a written record that you and the seller (or buyer, if you are selling) both sign to prove that money changed hands and ownership transferred. It is not a title — that is a separate government document issued by your state's motor vehicle department. The bill of sale is proof that the transaction happened, and you will need it when you register the car in your name or when you sell it later.
The document itself is straightforward. It typically fits on one page and contains basic information about the car, the people involved, the price paid, and the date. Some states have an official form; others let you use any written record as long as it has the essential details. Either way, the bill of sale looks straightforward because it is — it is meant to be a clear record, not a legal contract with fine print.
Key Takeaways
- A bill of sale records the car's year, make, model, VIN, and odometer reading so there is no confusion about which vehicle changed hands.
- Both the buyer and seller must sign and date the document, and each person should keep a copy for their records.
- The bill of sale shows the purchase price and payment method, which protects both parties if a dispute arises later.
- Some states require the bill of sale to be notarized; check your state's motor vehicle department website to confirm.
- You will need the bill of sale when you register the car, explore for a title, or sell the car to someone else.
The information that appears on every bill of sale
Every bill of sale includes the same core details, regardless of whether you use a state form or write one yourself. At the top, you will see the date the sale occurred. Below that are the names and addresses of the seller and the buyer — the person transferring the car and the person receiving it.
The vehicle section lists the year, make, model, color, and Vehicle Identification Number (VIN). The VIN is a 17-character code stamped on the car's frame and printed on the title; it is the car's unique fingerprint. The bill of sale also records the odometer reading at the time of sale. This protects the buyer by documenting the mileage and protects the seller by showing they disclosed it honestly.
The price section states the total amount paid, the payment method (cash, check, electronic transfer), and sometimes the condition of the sale — for example, whether the car is sold "as-is" or with any warranty. At the bottom, both the seller and buyer sign and print their names. Some states require a notary public to witness the signatures; others do not.
What a typical bill of sale looks like on the page
If you search for "bill of sale template" online, you will see that most look similar. The document usually begins with a centered title: "Bill of Sale" or "Motor Vehicle Bill of Sale." Below that is a line for the date, followed by two sections — one for the seller's information and one for the buyer's.
The vehicle details are usually laid out in a table or a series of labeled blanks: "Year: _____ Make: _____ Model: _____ Color: _____ VIN: _____" and so on. The price and payment terms come next, often in a single line: "The buyer agrees to pay the seller $[amount] by [payment method]." Some forms include a checkbox for "as-is" sales or a space to note any defects or repairs.
At the bottom are signature lines for both parties, with spaces to print names and add the date. If your state requires notarization, there will be a section for the notary's seal and signature. The overall layout is clean and straightforward to read — nothing fancy, just organized information.
State-specific forms and where to find them
Some states provide an official bill of sale form on their motor vehicle department website. For example, Texas, Florida, and Ohio all have downloadable forms that you can print and fill out by hand or on a computer. Other states, like California and New York, do not have an official form but accept any written bill of sale as long as it contains the required information.
To find out whether your state has an official form, go to your state's motor vehicle department website and search for "bill of sale" or "motor vehicle bill of sale." If an official form exists, use it — it is designed to include everything your state requires and will be accepted without question. If your state does not have a form, you can read a template from a legal document site or write one yourself, as long as you include the seller's name and address, the buyer's name and address, the vehicle details, the price, and both signatures.
Do not assume that a form from another state will work in yours. Each state has different requirements for what must be included and whether a notary is needed. Spending five minutes checking your state's website now saves you trouble when you try to register the car.
When you need the bill of sale and what to do with it
You will need the bill of sale when you register the car with your state's motor vehicle department. Bring it along with the title (or the title process if the seller has not transferred it yet), proof of insurance, and your ID. The bill of sale proves that you bought the car and paid for it, which is part of the registration process.
If you are buying a car and the seller has not yet signed over the title, the bill of sale is your proof of purchase while you wait for the title to arrive. Keep a copy in a safe place — you will need it again if you sell the car later. When you sell, the buyer will ask to see your bill of sale from when you bought it, because it shows the chain of ownership and the price you paid.
Make two copies of the signed bill of sale: one for you and one for the other party. If the sale is notarized, the notary may keep a copy as well. Do not throw away your copy after you register the car. File it with your car's other documents — insurance papers, maintenance records, the title — in case you need to prove when you bought the car or what you paid for it.
Common details that sometimes cause confusion
One frequent point of confusion is the difference between the bill of sale and the title. The bill of sale is a receipt; the title is the legal ownership document issued by the state. You need both. The bill of sale proves the transaction happened; the title proves who owns the car right now. When you buy a car, you get the bill of sale from the seller when ready, but the title may take weeks to arrive from the motor vehicle department.
Another source of confusion is the odometer reading. Some buyers worry that if the odometer shows high mileage, the bill of sale will hurt them later. In fact, recording the odometer reading protects you — it documents what the seller told you the mileage was at the time of sale. If the seller later claims they told you something different, the bill of sale is your proof.
A third point of confusion is whether you need a notary. This varies by state. Some states require notarization; some do not. A few states require notarization only if the car is being sold between family members or if the price is above a certain amount. Check your state's motor vehicle department website to find out. If notarization is required and you skip it, the bill of sale may not be accepted when you try to register the car.
How to fill out a bill of sale correctly
Use black or blue ink if you are writing by hand, or type the form on a computer and print it. Fill in every blank — do not leave fields empty. If a field does not explore (for example, if there are no known defects), write "None" rather than leaving it blank. This shows that you considered the field and decided it did not explore, rather than overlooking it.
Use the legal names of both the buyer and seller, not nicknames. If the car is registered to two people, both must sign the bill of sale. The VIN must match exactly — copy it character by character from the title or the car's dashboard. The odometer reading should be the actual mileage at the time of sale; if you do not know it, write "Unknown" rather than guessing.
The price should be the actual amount paid, not a reduced amount for tax purposes. Some people try to write a lower price on the bill of sale to reduce sales tax, but this is tax fraud and can result in fines or criminal charges. Write the true price. Both parties should sign and date the document on the same day if possible, or at least on the day the money changes hands. If notarization is required, have it done before either party leaves.
Frequently Asked Questions
Can I use a bill of sale from the internet, or do I have to use my state's form?
If your state has an official form, use it — it is designed to meet your state's requirements and will be accepted without question. If your state does not have an official form, you can use a template from the internet as long as it includes the seller's and buyer's names and addresses, the vehicle details, the price, and both signatures. Check your state's motor vehicle department website first to see if an official form exists.
What if I lose my copy of the bill of sale after I register the car?
You can request a copy from the other party, or in some cases from your state's motor vehicle department if they kept a copy on file. It is better to keep your original in a safe place — a file folder with your car's documents, a safe deposit box, or a digital scan stored in cloud storage. You may need it if you sell the car or if a dispute arises about when you bought it or what you paid.
Do I need a bill of sale if I am buying a car from a dealer instead of a private person?
Dealers provide their own paperwork, which serves the same purpose as a bill of sale. You will receive a sales contract or purchase agreement that documents the sale, the price, and the vehicle details. Keep this document with your other car records. You still need to bring it to the motor vehicle department when you register the car.
What happens if the seller and I disagree about the price we agreed on?
The bill of sale is your proof of what price was agreed to and paid. If the seller claims a different amount, the signed bill of sale is evidence of the true price. This is why it is important to write the actual amount paid and have both parties sign. If a dispute arises, the bill of sale protects both of you by providing a written record.
Is a bill of sale the same thing as a title transfer?
No. A bill of sale is a record of the sale; a title transfer is the legal process of changing ownership with the state. You need both. The bill of sale proves the transaction happened; the title transfer (usually done by the seller signing the back of the title) tells the state who owns the car now. The bill of sale is your receipt; the title is the ownership document.