A bill of sale is a written record that proves you bought or sold a car
A bill of sale is a document that shows the transfer of ownership from one person to another. When you buy a used car from a private seller, a dealer, or anyone else, a bill of sale records the date of the sale, the vehicle details, the price paid, and the signatures of both the buyer and seller. It is a legal record that protects both parties by documenting what happened and when.
The bill of sale is separate from the title — the official government document that names the legal owner. You need both documents to complete a car purchase. The bill of sale proves the transaction took place; the title transfer proves ownership changed hands in the eyes of the state.
In most states, a bill of sale is not required by law to buy or sell a car privately, but having one protects you. If a dispute arises later — about the price, the condition of the car, or who owns it — the bill of sale is your proof of what was agreed to and when.
Key Takeaways
- A bill of sale documents the sale of a car and includes the vehicle identification number (VIN), sale price, date, and signatures of both buyer and seller.
- The bill of sale is not the same as the title; you need both to complete a legal transfer of ownership.
- While not legally required in most states, a bill of sale protects both buyer and seller by creating a written record of the transaction.
- You can use a template from your state's Department of Motor Vehicles, a generic form, or write your own as long as it includes the essential information.
- The buyer should keep the bill of sale when registering the car with the state; the seller should keep a copy for their records.
What information goes on a bill of sale
A bill of sale should include the vehicle identification number (VIN), the make, model, year, and color of the car. It also needs the sale price, the date of the sale, and the full names and addresses of both the buyer and the seller. Some forms ask for the odometer reading at the time of sale, which can protect the buyer from odometer fraud.
The document should state whether the car is sold "as is" — meaning the buyer accepts it in its current condition — or whether the seller is making any promises about the car's condition or mechanical state. Both the buyer and seller must sign and date the form. Some states ask for the signatures to be notarized, though this is not common.
If there is a loan on the car, the bill of sale should note whether the buyer is taking over the loan or whether the seller is paying it off before transfer. This prevents confusion later about who owes money to the lender.
Where to get a bill of sale form
Many state Departments of Motor Vehicles provide a bill of sale template on their websites, often as a free PDF you can read and print. Search "[your state] bill of sale" or "[your state] DMV bill of sale" to find the official form.
If your state does not provide one, you can use a generic bill of sale template from legal document websites, or you can write one yourself. The form does not have to be fancy or official-looking — it just needs to include all the key information and be signed by both parties.
Some car dealers provide their own bill of sale forms when you buy from them. If you are buying from a private seller, you are responsible for creating or obtaining the form. Many sellers are willing to sign a form you bring, especially if it protects them as well.
How a bill of sale differs from a title
The title is the government-issued document that proves legal ownership of the car. Only the state can issue a title, and the title must be transferred through the Department of Motor Vehicles to make the ownership change official. The bill of sale is a private record between the buyer and seller; it does not transfer ownership by itself.
When you buy a car, you need the seller to sign the title over to you, and you must submit that signed title to your state's DMV along with other paperwork to register the car in your name. The bill of sale supports this process by showing that a legitimate sale took place, but the title is what the state recognizes as proof of ownership.
If you lose the bill of sale, you can still own the car — the title is what matters legally. But if you lose the bill of sale and later need to prove when you bought the car or what you paid for it, you will have no written record.
Why you should keep a bill of sale even when it is not required
In many states, a bill of sale is optional, but having one protects you in several ways. If you are the buyer and the car breaks down shortly after purchase, a bill of sale that says "as is" shows you accepted the car in its current condition and cannot hold the seller responsible. If the bill of sale says the seller promised certain repairs or that the car was in good condition, you have proof of that promise if you need to pursue a claim.
If you are the seller, a bill of sale protects you by showing you transferred ownership on a specific date. If the car is involved in an accident or crime after you sold it, the bill of sale proves you no longer owned it at that time. It also protects you if the buyer fails to register the car and the state tries to hold you liable for unpaid registration fees or violations.
A bill of sale also creates a clear record of the sale price, which can matter for tax purposes in some states or if either party needs to report the transaction for insurance or other reasons.
What to do with the bill of sale after the sale
The buyer should keep the original bill of sale or a copy when registering the car with the state. Some states ask you to submit the bill of sale along with the title transfer paperwork; others just want the signed title. Check your state's DMV website to see what documents are needed for registration.
The seller should keep a copy of the signed bill of sale for at least a few years. This protects the seller if questions arise about the sale later. Some sellers photograph or scan the signed bill of sale and store it digitally as backup.
If you are financing the car through a bank or credit union, the lender may ask to see the bill of sale as part of the loan process. Having it ready speeds up the paperwork.
Common mistakes when writing a bill of sale
The most common mistake is leaving out the VIN or writing it incorrectly. The VIN is the unique identifier for the car, and if it is wrong on the bill of sale, the document may not match the title when you try to register the car. Double-check the VIN against the title or the car's registration before you write it on the bill of sale.
Another mistake is not stating whether the car is sold "as is" or with any promises about condition. If this is unclear, the buyer might later claim the seller promised repairs or that the car was in better condition than it actually was. Be explicit about the car's condition and any promises made.
Forgetting to include the sale price is also common, especially in family sales where money may not change hands. Even if the car is a gift, write "gift" or "$0" on the bill of sale so there is no question about whether a sale took place. Some states use the sale price to calculate transfer taxes, so leaving it blank can cause problems at registration.
Frequently Asked Questions
Do I need a bill of sale if I am buying from a car dealer?
Dealers usually provide their own bill of sale or sales contract as part of the purchase paperwork. This serves the same purpose as a private bill of sale. You should still review it to make sure it includes the VIN, sale price, date, and any promises about the car's condition or warranty.
Can I use a bill of sale if the car has a lien on it?
Yes, but you need to note on the bill of sale that the car has a lien and state how it will be handled. If the seller is paying off the loan before transfer, write that on the form. If the buyer is taking over the loan, that should be noted too. The lender must also sign off on the title transfer, which is a separate process from the bill of sale.
What if the seller will not sign the bill of sale?
A seller who refuses to sign a bill of sale is a red flag. Without it, you have no written proof of the sale, the price, or the date. If you are buying a car, insist on a bill of sale before you hand over money. If the seller refuses, reconsider the purchase — the refusal suggests they may not be the legal owner or may be hiding something.
Does the bill of sale need to be notarized?
Most states do not require notarization for a bill of sale. A few states ask for it in certain situations, such as when the car is being transferred between family members or when the sale price is above a certain amount. Check your state's DMV website to see if notarization is required where you live.
What if I bought a car years ago and never got a bill of sale?
If you own the car and the title is in your name, you are the legal owner and do not need a bill of sale. However, if you ever need to prove when you bought the car or what you paid for it, you will not have that record. Going forward, always get a bill of sale for any car you buy.