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 a car has changed hands from one owner to another. It lists the vehicle details, the price paid, the date of the sale, and the signatures of both the buyer and seller. The bill of sale serves as proof that the transaction happened and protects both parties by creating a paper trail.
You need a bill of sale whenever you buy or sell a car, whether you are dealing with a private seller, a dealership, or a family member. Some states require it by law before you can register the vehicle in your name. Even where it is not legally required, having one protects you if a dispute arises later about who owns the car or what was promised at the time of sale.
The bill of sale is separate from the title, which is the legal document that proves ownership. The title transfers ownership; the bill of sale documents the transaction that led to that transfer. You will typically need both documents to complete a car purchase.
Key Takeaways
- A bill of sale is a written record of a car sale that includes the vehicle details, sale price, date, and signatures of both buyer and seller.
- Many states require a bill of sale before you can register a car in your name, even if you buy from a private seller.
- The bill of sale protects you by creating proof of the transaction and can help settle disputes about price, condition, or who owns the car.
- You can use a template from your state's DMV website or a generic form, and both parties should keep a signed copy for their records.
What information goes on a bill of sale
A bill of sale must include the vehicle identification number (VIN), which is a 17-character code unique to that car. You will also need the make, model, year, color, and license plate number. This information ensures the document refers to the specific car being sold, not just any car.
The document must show the sale price and the date of the sale. It should also include the full names and addresses of both the buyer and the seller. Some forms ask for driver's license numbers or phone numbers as well. Both the buyer and seller must sign and date the form.
Many bill of sale forms also include a section where the seller states the condition of the car or discloses known problems. This protects the buyer by creating a record of what was said about the vehicle at the time of purchase. If the seller claims the car has no mechanical issues and it breaks down a week later, the buyer has written proof of what was promised.
Where to get a bill of sale form
Your state's Department of Motor Vehicles (DMV) website usually has a bill of sale form you can read for free. Search "[your state] DMV bill of sale" to find the official version. Using your state's form ensures it meets all legal requirements in your area.
If your state does not provide a form, you can use a generic template from a legal document website or create one yourself. The form does not need to be fancy or printed on special paper. A handwritten bill of sale is legally valid as long as it includes all the required information and both parties sign it.
If you buy from a dealership, the dealer will usually provide the bill of sale as part of the paperwork. Read it carefully to make sure all the details are correct before you sign. Private sellers will not have a form ready, so you should bring one with you or ask the seller to fill one out together.
When you need a bill of sale
You need a bill of sale whenever you buy a car from a private seller. This is the most common situation where a bill of sale matters, because there is no dealership paperwork to document the sale. Before you hand over money, make sure you and the seller both sign a bill of sale.
If you are buying from a dealership, the dealer's paperwork usually serves the same purpose, but you should still ask for a bill of sale if the dealer does not provide one. Some states require it; others do not. Check your state's DMV website to see what is required in your area.
You also need a bill of sale if you are selling a car you own. Even if you think the buyer will not need it, creating one protects you by proving you no longer own the vehicle. If the buyer gets into an accident or racks up parking tickets after the sale, you have proof you sold it and are not responsible.
How a bill of sale connects to vehicle registration
When you buy a car, you must register it with your state's DMV within a certain time frame, usually 10 to 30 days depending on the state. The DMV will ask for proof of ownership, which is the title. Many states also require a bill of sale before they will process the registration.
The bill of sale shows the DMV that a legitimate sale took place and helps them update their records to show you as the new owner. Without it, the DMV may delay your registration or ask for additional proof that you bought the car legally. Having a signed bill of sale speeds up the process.
Keep a copy of your bill of sale with your car's title and registration documents. You may need to show it if you sell the car later, if you file an insurance claim, or if there is ever a question about who owns the vehicle.
What happens if you do not have a bill of sale
If you buy a car without a bill of sale, you may have trouble registering it in your name. The DMV might ask for other proof that you own the car, such as a bank statement showing the purchase or a text message from the seller confirming the sale. These alternatives are weaker than a signed bill of sale.
Without a bill of sale, you also have less protection if a dispute arises. If the seller claims you still owe money, or if the buyer later says the car was not in the condition promised, there is no written record to back up either side. A bill of sale creates proof of what was agreed to at the time of the sale.
In some states, selling a car without a bill of sale may violate state law. The seller could face fines or other penalties. As a buyer, you may not be able to register the vehicle until you get a bill of sale signed by the seller, which can be difficult if the seller is no longer in contact.
Frequently Asked Questions
Do I need a bill of sale if I buy from a dealership?
Dealerships provide their own sales paperwork that serves the same purpose as a bill of sale. However, some states still require a separate bill of sale form. Check your state's DMV website to see what is required. If your state requires one and the dealership does not provide it, ask them to fill one out.
Can I write a bill of sale by hand?
Yes. A handwritten bill of sale is legally valid as long as it includes all the required information and both parties sign it. You do not need to use an official form or have it notarized, though some states allow notarization as an extra layer of protection. Handwriting it is fine if you include the VIN, vehicle details, sale price, date, and both signatures.
What if the seller will not sign a bill of sale?
Do not buy the car. A seller who refuses to sign a bill of sale is a red flag. They may be hiding something about the vehicle's history, or they may plan to claim they still own it later. A bill of sale protects you, and any legitimate seller should be willing to sign one.
Do I need to get a bill of sale notarized?
Notarization is not required in most states, but some states recommend it or allow it. A notary is a person authorized by the state to witness signatures and verify that the people signing are who they say they are. If you want extra protection, you can take the bill of sale to a notary public, but it is not necessary for the document to be legal.
What if I lost my copy of the bill of sale?
Contact the seller and ask for another signed copy. If the seller will not cooperate, you may be able to get a copy from your state's DMV if you submitted it with your registration paperwork. Keep your bill of sale in a safe place with your title and registration documents so you do not lose it.