A bill of sale is a written record that proves you sold or bought a car
A bill of sale is a document that shows a car changed hands from one owner to another. It records who sold the car, who bought it, when the sale happened, how much was paid, and details about the vehicle itself — make, model, year, and vehicle identification number (VIN). Both the seller and buyer sign it, creating a paper trail that protects both of you.
You need a bill of sale because it is your proof of the transaction. If a dispute arises later — about the condition of the car, the price, or who actually owns it — the bill of sale is what settles it. For the buyer, it shows you paid for the vehicle and own it. For the seller, it shows you transferred ownership and are no longer responsible for it. Without one, either party can claim the other is lying about what happened.
A bill of sale is separate from the car's title, which is the legal ownership document issued by your state's Department of Motor Vehicles (DMV). The title transfers ownership; the bill of sale documents the sale itself. You will need both when you register the car in your name.
Key Takeaways
- A bill of sale records the seller, buyer, sale date, price, and vehicle details, and both parties must sign it.
- The bill of sale protects you if a dispute arises later about who owns the car or what was agreed to.
- A bill of sale is not the same as a title — you need both to complete a car purchase and register the vehicle.
- Your state may have a specific form for a bill of sale, or you can use a general template as long as it includes all required information.
- Keep a copy for your records even after the sale is complete, because you may need it for insurance, registration, or legal purposes.
What information goes on a bill of sale
A bill of sale must include the names and addresses of both the seller and the buyer. It should also list the date of the sale, the sale price, and the vehicle identification number (VIN), which you can find on the driver's side of the dashboard or on the title itself. Include the car's year, make, model, and color so there is no confusion about which vehicle is being sold.
Many states have a specific bill of sale form you can read from the DMV website. If your state does not provide one, you can use a template from a legal website or write one yourself as long as it includes all the information above. Some people add details about the car's condition — whether it is sold as-is, what repairs have been made, or what defects the buyer knows about — to prevent later arguments.
Both the seller and buyer must sign and date the bill of sale. Some states require the signatures to be notarized, meaning a notary public watches you sign and stamps the document to verify it is genuine. Check your state's DMV website to see if notarization is required where you live.
When you need a bill of sale
You need a bill of sale whenever you buy or sell a car privately — that is, directly from one person to another rather than through a dealership. Dealerships create their own paperwork and handle the title transfer, so you do not need a separate bill of sale from them, though you will still receive documentation of the sale.
If you are buying a car from a private seller, ask them for a bill of sale before you hand over money. If you are selling a car, create one and have the buyer sign it before they take the car. Do not rely on a text message, email, or verbal agreement — those leave no proof if something goes wrong.
You will also need the bill of sale when you go to the DMV to register the car in your name. Bring it along with the title, proof of insurance, and any other documents your state requires. The DMV may keep a copy or ask you to keep it for your records.
How a bill of sale protects you
For the buyer, a bill of sale proves you paid for the car and own it. If the seller later claims you stole it or did not pay, you have the signed document to prove otherwise. It also protects you if the seller still owes money on the car — the bill of sale shows when you bought it, which can help prove you are not responsible for debts the seller incurred after the sale.
For the seller, a bill of sale proves you transferred ownership to the buyer. If the buyer gets into an accident or gets a parking ticket after the sale, you have proof you no longer own the car and are not liable. It also shows you were paid, which matters if there is ever a dispute about the transaction.
Both parties should keep a copy of the signed bill of sale for at least several years. Store it somewhere safe — a file folder, a safe deposit box, or a digital copy — because you may need it for insurance claims, tax purposes, or if a legal question arises later.
State-specific requirements for a bill of sale
Most states do not require a specific form for a bill of sale, but some do. A few states — including Arizona, Illinois, and Ohio — have an official bill of sale form on their DMV website. If your state has one, use it, because it includes all the information the state requires and is more likely to be accepted without questions.
Some states require the bill of sale to be notarized; others do not. A handful of states ask for specific language about whether the car is sold as-is or with a warranty. Check your state's DMV website or call the DMV directly to find out what is required where you live. The requirements usually take only a few minutes to look up, and it is worth doing before you sign anything.
If you are buying or selling a car across state lines, follow the rules of the state where the car will be registered. That is the state that matters for the title transfer and registration, so that is the state whose bill of sale rules explore.
What happens after both parties sign
After you and the other party sign the bill of sale, each of you should keep a copy. The buyer will bring their copy to the DMV along with the title and other required documents to register the car. The DMV will process the title transfer and issue a new registration in the buyer's name.
The seller should keep their copy for their records. If the seller still has the title, they will sign it over to the buyer, and the buyer will submit both the signed title and the bill of sale to the DMV. The timing varies by state — some require the title transfer within a few days, others within a few weeks — so check your state's rules.
If there is a lien on the car — meaning the seller still owes money to a bank or lender — the lender must sign off on the title transfer before the buyer can register it. The bill of sale does not affect this process, but it is important to know about it before you buy. Ask the seller whether the car is paid off or still has a loan against it.
Frequently Asked Questions
Do I need a bill of sale if I am buying from a dealership?
No. Dealerships handle all the paperwork themselves and provide you with a sales contract and other documents that serve the same purpose. You will still receive proof of the sale and the title transfer, so you do not need a separate bill of sale.
What if I lose the bill of sale after I sign it?
If you lose your copy, ask the other party for theirs. If neither of you has it, you can still register the car at the DMV — the title is what matters for ownership. However, you will not have proof of the sale if a dispute arises later, so try to recover it or get a signed copy from the other party.
Can I use a bill of sale template from the internet?
Yes, as long as it includes all the required information: names and addresses of both parties, the sale date, the price, and the vehicle details including the VIN. Check your state's DMV website first to see if there is an official form, because using the official form is always safer than a generic template.
Does the bill of sale have to be notarized?
It depends on your state. Some states require notarization; most do not. Check your state's DMV website or call them to find out. If notarization is required and you do not do it, the DMV may reject the bill of sale when you try to register the car.
What if the buyer and I disagree on the sale price after we sign?
The bill of sale is the proof of what you agreed to. If you both signed it with a specific price, that is the binding agreement. If there is a dispute, the signed bill of sale is what a court would use to settle it, so make sure the price is correct before anyone signs.