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 sell one yourself, a bill of sale records the date, the vehicle details, the price paid, and the signatures of both parties. It serves as proof that the transaction happened and who owned the car at what point in time.
The bill of sale is not the same as the car's title or registration. The title is the legal document that proves ownership and is issued by your state's Department of Motor Vehicles (or equivalent). The bill of sale is the evidence that led to the title transfer. Many states require you to submit the bill of sale when you register the vehicle in your name or transfer the title.
A bill of sale protects both the buyer and the seller. For the buyer, it documents what was paid and the condition of the car at the time of purchase. For the seller, it shows they no longer own the vehicle and are not responsible for it after the sale date. Without one, disputes can arise about whether a sale actually occurred, what price was agreed to, or who is liable for the car.
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.
- The bill of sale is different from the title; it is the document you use to prove the sale happened when you go to register the car with your state.
- Most states require a bill of sale or will accept one when you transfer ownership, though a few states do not legally require it.
- Both the buyer and seller should keep a signed copy for their records, as it protects each party if questions arise later.
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 should also list the odometer reading at the time of sale, the sale price, and the date the transaction took place. Both the buyer and the seller must sign and print their names on the document.
Many bills of sale also include the names and addresses of both parties, the condition of the vehicle (for example, whether it runs, has mechanical issues, or is being sold "as-is"), and any warranties or guarantees being offered. Some include a statement that the seller is transferring all rights to the vehicle to the buyer and that the seller has the legal right to sell it. If the car has a lien (money still owed to a bank or lender), that should be noted as well.
The format and required information vary by state. Some states have an official bill of sale form you can read from the Department of Motor Vehicles website. Others accept any written document that contains the basic information. A few states do not require a bill of sale at all, though having one is still a good idea for your protection.
How to get a bill of sale form
Many state Departments of Motor Vehicles publish an official bill of sale form on their websites. You can search "[your state] bill of sale form" and usually find a PDF you can print and fill out by hand or type into before printing. Some states offer the form through their online portal or at a local DMV office.
If your state does not have an official form, you can use a generic bill of sale template from a legal document website or create your own. The key is that it includes all the information listed above and is signed and dated by both parties. You do not need a lawyer to create or sign a bill of sale, and you do not need to have it notarized in most states, though some states recommend or require notarization for added legal protection.
When buying from a dealer, the dealer usually provides the bill of sale as part of the paperwork. When buying from a private seller, you may need to bring your own form or ask the seller to create one. Either way, make sure both parties have a signed copy before the money changes hands and the keys are handed over.
When you need a bill of sale
You need a bill of sale whenever you buy or sell a car to a private individual. If you are buying from a licensed dealer, the dealer will provide sales paperwork that serves a similar purpose, though you may still want a separate bill of sale for your records.
You will use the bill of sale when you go to your state's Department of Motor Vehicles to register the car in your name or transfer the title. You will typically submit it along with the title (or an process for a new title if the seller lost theirs), proof of insurance, and identification. The DMV uses the bill of sale to confirm the sale took place and to update their records about who owns the vehicle.
If you are selling a car, you should complete a bill of sale before handing over the keys and title. This protects you by creating a record that you no longer own the vehicle as of that date. If the buyer later gets into an accident, racks up parking tickets, or fails to register the car, you have proof you are not responsible.
What happens if you do not have a bill of sale
If you buy a car without a bill of sale, you may still be able to register it in your name, depending on your state. However, you will have a harder time proving the sale took place if a dispute arises. For example, if the seller claims they never sold you the car, or if there is a question about the price or the condition of the vehicle, you have no written evidence to back up your version of events.
Without a bill of sale, you also have less protection if the car has outstanding liens or if the title is fraudulent. Some states will not process a title transfer without a bill of sale or equivalent documentation. In those cases, you will need to go back to the seller and ask them to sign one retroactively, which may be difficult if you no longer have contact with them.
For the seller, not having a bill of sale means there is no official record that you transferred ownership. If the buyer does not register the car and later gets into an accident or commits a crime with the vehicle, you could potentially be held liable because the records still show you as the owner. A bill of sale protects you by creating a dated record of the transfer.
Differences between a bill of sale and a title
The title is the official legal document issued by your state that proves ownership of the vehicle. It has a title number, lists the owner's name, and is registered with the Department of Motor Vehicles. The title is what you need to show if you are stopped by police or if you want to sell the car later.
The bill of sale is the transaction record that shows the sale happened. It is the document you use to prove to the DMV that you bought the car so they will issue a new title in your name. Once the DMV processes your process and the bill of sale, they will send you a new title. From that point on, the title is your proof of ownership, not the bill of sale.
Think of it this way: the bill of sale is the receipt for the purchase. The title is the ownership document itself. You need the receipt to get the ownership document, but once you have the title, the title is what matters legally.
How to fill out and sign a bill of sale
Start by filling in the vehicle information: the VIN (found on the dashboard or in the owner's manual), the make, model, year, and color. Write down the odometer reading and the sale price. Include the date of the sale and the full names and addresses of both the buyer and the seller.
If the car is being sold "as-is" (meaning the buyer accepts it in its current condition with no repairs promised), write that clearly on the form. If there are any known mechanical problems, note them. If the seller is offering any warranty or may provide, include that as well. If there is a lien on the car, state who holds the lien and whether the buyer or seller is responsible for paying it off.
Both the buyer and the seller should sign and print their names on the document. Some states recommend having the signatures notarized by a notary public, though this is not always required. Check your state's DMV website to see if notarization is recommended or required. Each party should keep a signed copy for their records.
Frequently Asked Questions
Do I need a bill of sale if I buy a car from a dealer?
Dealers provide sales paperwork that serves the same purpose as a bill of sale. However, keeping a separate bill of sale for your personal records is still a good idea. If your state requires a bill of sale to register the vehicle, the dealer's paperwork usually satisfies that requirement.
Can I use a bill of sale if the seller lost the title?
Yes. If the seller no longer has the title, you can use the bill of sale along with an process for a duplicate or replacement title. Your state's DMV can issue a new title based on the bill of sale and other documentation. Contact your local DMV to find out what additional documents you will need to provide.
What if the buyer and seller disagree on the price after signing?
Once both parties sign a bill of sale, it is a binding record of the agreed price. If a dispute arises, the signed bill of sale is the evidence of what was agreed to. This is why it is important to make sure the price is correct before signing and to keep a copy for your records.
Do I need to notarize a bill of sale?
Notarization is not required in most states, but some states recommend it for added legal protection. A notary public will verify the identities of both parties and witness the signatures. Check your state's DMV website to see if notarization is recommended or required in your area.
What if I sell a car and the buyer never registers it?
If you have a signed bill of sale showing the date you transferred ownership, you have proof that you are no longer responsible for the vehicle. Keep your copy in a safe place. If you receive a ticket or notice related to the car, you can show the bill of sale to prove you no longer own it.