A bill of sale is a written record that the seller and buyer sign to show that a car has changed hands
A car bill of sale is a document that proves ownership transfer. It lists the vehicle details, the names and signatures of both the seller and buyer, the sale price, and the date of the transaction. The document serves as evidence that money changed hands and that the seller no longer owns the car. Most states do not require a specific form, so the bill of sale can be handwritten on plain paper, typed on a template, or filled out on a state-provided form if one exists.
The bill of sale is separate from the title document. The title is the legal proof of ownership issued by your state's motor vehicle department. The bill of sale is the record of the transaction itself. You will need both the bill of sale and the title to complete a vehicle purchase at the DMV or your state's equivalent agency.
Key Takeaways
- A bill of sale must include the vehicle identification number (VIN), the make and model, the year, the sale price, and the date of sale.
- Both the seller and buyer must sign the bill of sale, and it is wise to have the signatures witnessed or notarized in case a dispute arises later.
- Most states do not mandate a specific bill of sale form, so you can use a template, a state form if available, or write one yourself on plain paper.
- The bill of sale protects both parties by creating a written record of the transaction and the agreed-upon price.
The information that must appear on a bill of sale
A complete bill of sale includes the vehicle's full identification number (VIN), which is a 17-character code unique to that car. The document should also list the vehicle's year, make, model, color, and current mileage. These details may support that both parties are talking about the same car and prevent confusion if a dispute arises later.
The seller's full name, address, and signature must appear on the bill of sale. The buyer's full name, address, and signature must also be present. The sale price should be written out in both numbers and words to avoid ambiguity. For example, "$5,000" and "Five Thousand Dollars" both appear on the document. The date of the sale must be included as well.
Some bills of sale also include a statement that the seller warrants the car is free of liens—meaning no lender has a claim against it. This protects the buyer from inheriting someone else's loan. If there is a lien on the vehicle, that fact should be disclosed on the bill of sale.
How a bill of sale is typically formatted
Most bills of sale follow a straightforward layout. At the top, the words "Bill of Sale" or "Vehicle Bill of Sale" appear as a heading. Below that are labeled sections for the seller's information, the buyer's information, and the vehicle details. The sale price and date are usually placed prominently in the middle or lower portion of the page.
The document often includes a statement such as "The undersigned seller hereby sells, transfers, and assigns to the buyer the vehicle described above." This language makes clear that ownership is changing hands. At the bottom are signature lines for both the seller and the buyer, with space for the date each person signs.
Some versions include a line for the odometer reading at the time of sale. Others have a checkbox for the buyer to confirm that they have inspected the vehicle and accept it in its current condition. These additions are optional but can prevent later disagreements about the car's condition or mileage.
Where to find a bill of sale template or form
Many states provide an official bill of sale form on their motor vehicle department website. You can search "[your state] bill of sale form" to find it. Some states call it a "Vehicle Bill of Sale," while others use different names. A few states do not provide a form at all, which means you can create your own or use a template from a reliable source.
Free templates are available from legal document websites, the American Automobile Association (AAA), and consumer protection organizations. These templates contain all the standard fields and language. You can read the template, fill it in by hand or on your computer, print it, and have both parties sign it.
If you are buying or selling through a dealership, the dealership will usually provide the bill of sale as part of the paperwork. Private sales require you to create or obtain the bill of sale yourself.
Signing and witnessing the bill of sale
Both the seller and buyer must sign the bill of sale in front of each other or in the presence of a witness. Signing confirms that each party agrees to the terms and the sale price. The signature should be in ink, not printed or digital, unless your state allows electronic signatures.
Having a witness sign the bill of sale adds an extra layer of protection. The witness does not need to be a lawyer or notary—any adult can serve as a witness. The witness signs to confirm that they saw both the seller and buyer sign the document. If a dispute arises later, the witness can testify to what they saw.
Some people choose to have the bill of sale notarized. A notary public is an official authorized by the state to witness signatures and verify identities. Notarization costs a small fee but provides stronger legal proof that the signatures are genuine. A few states require notarization for bills of sale, so check your state's rules before signing.
What happens to the bill of sale after the sale
The buyer should keep the original signed bill of sale or a certified copy. This document is needed when you go to the DMV or your state's motor vehicle office to register the car in your name and transfer the title. Bring the bill of sale along with the title document, proof of insurance, and any other paperwork the DMV requires.
The seller should also keep a copy of the signed bill of sale for their records. This protects the seller by proving that they sold the car on a specific date and no longer own it. If the car is involved in an accident or crime after the sale, the seller can show the bill of sale to prove they were not the owner at that time.
Do not throw away the bill of sale after the title transfer is complete. Keep it in a safe place with your vehicle records for at least a few years.
Common mistakes to avoid when filling out a bill of sale
One frequent error is leaving fields blank or incomplete. Every section should be filled in, including the VIN, the sale price, and both parties' signatures. Blank spaces can lead to disputes or delays at the DMV. If a field does not explore to your situation, write "N/A" or "Not Applicable" rather than leaving it empty.
Another mistake is writing the sale price in only numbers or only words. Write it both ways to prevent confusion. If the buyer and seller disagree later about the price, having it written out in words provides additional clarity.
Some people forget to include the date or sign the document. Without a date and signatures, the bill of sale has no legal weight. Make sure both parties sign and date the document before either one leaves.
Using pencil instead of ink is also a problem. Pencil can be erased or altered, which raises questions about the document's authenticity. Always use a pen with blue or black ink.
Frequently Asked Questions
Do I need a bill of sale if I am buying from a dealership?
Dealerships provide their own bill of sale or sales agreement as part of the purchase paperwork. You do not need to create a separate one. However, make sure the dealership's document includes all the required information: the VIN, the sale price, the date, and both signatures.
What if the seller and buyer cannot meet in person to sign?
Some states allow electronic signatures or notarized signatures by mail. Check your state's motor vehicle department website for rules on remote signing. If your state does not allow it, one party can sign first, then mail the document to the other party to sign and return.
Can I use a bill of sale if the car still has a loan on it?
Yes, but the bill of sale must clearly state that the vehicle has a lien. The seller should disclose the lender's name and the loan balance. The buyer should understand that they may need to pay off the loan or assume it as part of the purchase. The lender must also sign off on the title transfer.
Is a bill of sale the same as a title?
No. A bill of sale is a record of the transaction and the sale price. A title is the legal document proving ownership issued by the state. You need both documents to complete a vehicle purchase at the DMV.
What should I do if I lose the bill of sale after the sale?
Contact the other party and ask for a copy. If you cannot reach them, contact your state's motor vehicle department to see if they have a record of the title transfer. You may be able to request a certified copy of the transaction record.