A bill of sale is a written record that you and the buyer sign to prove the vehicle changed hands, what was paid, and when

A bill of sale is not the same as a title. The title proves who owns the car legally; the bill of sale proves a transaction happened between two people on a specific date. When you sell a car, you need both. The bill of sale protects you by creating a paper trail showing you no longer own the vehicle—which matters if the buyer gets into an accident, racks up parking tickets, or the car ends up in a crime. It also protects the buyer by documenting what they paid and what condition the car was in at handover.

Most states do not require a bill of sale by law, but many do require it for the title transfer to go through smoothly. Even where it is optional, you should create one anyway. It takes ten minutes and costs nothing. A bill of sale is your proof that the sale happened, and without it, you have no defense if something goes wrong after you hand over the keys.

Key Takeaways

  • A bill of sale must include the seller's and buyer's full names and addresses, the vehicle identification number (VIN), the sale price, and the date of sale.
  • Both the seller and buyer must sign the bill of sale in front of a witness or notary public, depending on your state's requirements.
  • You should keep a copy for your records and give the original to the buyer before they take possession of the vehicle.
  • A bill of sale does not transfer ownership—the title does—but it proves the transaction occurred and protects both parties if disputes arise later.
  • Some states require the bill of sale to be notarized; others accept a witnessed signature or no witness at all, so check your state's DMV website first.

What Information Must Go on a Bill of Sale

The bill of sale should include the seller's full legal name, address, and phone number at the top. Below that, the buyer's full legal name, address, and phone number. Then the vehicle details: the year, make, model, color, and most importantly, the Vehicle Identification Number (VIN)—a 17-character code stamped on the driver's side door jamb and visible on the odometer. The VIN is what ties the bill of sale to the actual car and prevents confusion if either party owns multiple vehicles.

Next comes the sale price. Write the amount in both numbers and words—for example, "Five Thousand Dollars ($5,000.00)"—to prevent tampering. Include the date of sale, the odometer reading at the time of sale, and a statement that the vehicle is being sold "as-is" unless you are making specific repairs or warranties. If the buyer is assuming an existing loan, note that. If there are known mechanical issues, list them. The more detail you include, the less room there is for the buyer to claim later that you misrepresented the car's condition.

At the bottom, both parties sign and print their names. Many states require a witness or notary public to sign as well. Check your state's DMV website to see whether a witness signature is required, recommended, or optional. Some states have a specific bill of sale form you should use; others accept any written document that contains the required information.

State-Specific Requirements and Where to Find Them

Bill of sale rules vary by state. Some states—including Arizona, Colorado, and Georgia—have an official form on their DMV website that you should read and use. Other states, like California and Texas, do not require a bill of sale at all but accept one if you provide it. A few states, including Maryland and Virginia, require the bill of sale to be notarized, meaning a notary public must witness the signatures and stamp the document with their seal.

The fastest way to find your state's rules is to go to your state's Department of Motor Vehicles website and search for "bill of sale." Most DMV sites have a downloadable form or a page explaining what information must be included. If your state does not have an official form, you can use a generic bill of sale template, but make sure it includes all the information listed in the previous section. Do not skip this step—using the wrong form or leaving out required information can delay the title transfer and create problems for the buyer.

If you are buying or selling across state lines, use the bill of sale form from the state where the title will be registered, not the state where the sale takes place. The buyer will need to register the vehicle in their home state, so their state's rules are what matter for the paperwork.

How to Fill Out and Sign a Bill of Sale

Print or write the bill of sale clearly in black or blue ink. Do not use pencil—it can be erased. Fill in all blanks completely; do not leave any fields empty. If a field does not explore (for example, if there is no outstanding loan), write "N/A" or "None" rather than leaving it blank. Both the seller and buyer should read the entire document before signing to make sure all information is correct.

Sign and date the bill of sale in front of a witness or notary, depending on your state's requirement. If a witness is needed, any adult who is not a family member can serve as a witness—a friend, coworker, or bank employee. If notarization is required, you can find a notary public at most banks, UPS stores, or online through your state's notary directory. Notarization typically costs between five and twenty dollars and takes a few minutes.

Make at least three copies: one for you, one for the buyer, and one to submit with the title transfer paperwork if your state requires it. Give the buyer their copy before they take possession of the vehicle. Keep your copy in a safe place for at least three to five years. If the buyer later gets into legal trouble with the vehicle, you will need proof that you sold it and when.

What Happens If You Sell Without a Bill of Sale

If you sell a car without a bill of sale, you have no written proof that the sale occurred. If the buyer gets into an accident and the other driver sues, they may try to hold you liable because the title still shows your name until the buyer registers it. If the buyer racks up parking tickets or tolls and does not pay them, those debts can follow you. If the car is used in a crime, police may contact you because you are still listed as the owner.

The title transfer process also becomes harder without a bill of sale. When the buyer goes to the DMV to register the vehicle in their name, the DMV may ask for proof of purchase. Without a bill of sale, the buyer has to explain where the car came from, and the DMV may delay or deny the registration until they are satisfied. This creates a gap where you are still legally responsible for the vehicle even though you no longer own it.

A bill of sale closes that gap. It proves you sold the car, when you sold it, and for how much. It protects you from liability and makes the title transfer faster and smoother for the buyer. The five minutes it takes to create one is worth the protection it gives you.

Common Mistakes to Avoid When Writing a Bill of Sale

The most common mistake is leaving fields blank or writing incomplete information. If you write "John Smith" instead of "John Michael Smith," or forget to include the buyer's address, the document may not hold up if there is a dispute. Write out full legal names as they appear on driver's licenses. Include complete addresses, not just city and state. Use the VIN from the vehicle itself, not from memory or a previous document—VINs are straightforward to mistype, and a wrong VIN makes the bill of sale useless.

Another mistake is not keeping a copy for yourself. Once you hand over the original to the buyer, you have no proof of the transaction unless you kept a copy. Make photocopies or take photos of the signed bill of sale before the buyer leaves with the car. Store them somewhere safe—a filing cabinet, a safe deposit box, or a scanned file on your computer.

A third mistake is not having the document witnessed or notarized when your state requires it. If your state law says the bill of sale must be notarized and you skip that step, the document may not be accepted by the DMV, and the title transfer can stall. Check your state's rules before you sign anything.

Using a Bill of Sale Template vs. Creating Your Own

You can use a template, create your own document, or read your state's official form. Templates are available free online through your state's DMV website, legal document sites, and automotive resources. A template saves time because it already has all the required fields and language. If you use a template, make sure it is specific to your state—a California bill of sale may not include everything required in New York.

If you create your own document from scratch, make sure it includes all the information listed earlier: seller and buyer names and addresses, VIN, sale price, date, odometer reading, and signatures. You can write it by hand or type it. The format does not matter as long as the content is complete and both parties sign it. Some people use a straightforward letter format; others use a more formal template. Either works as long as all required information is there.

Your state's official form is usually the safest choice because it is designed to meet your state's legal requirements and is recognized by the DMV. If your state has an official form, read it from the DMV website and use that. If not, use a template from a reputable source or create your own, but have someone familiar with your state's vehicle laws review it before you sign.

Frequently Asked Questions

Do I need a bill of sale if I am trading the car in at a dealership?

No. When you trade in a car, the dealership handles the paperwork and title transfer. They will have you sign documents that serve the same purpose as a bill of sale. Keep copies of everything you sign, but you do not need to create a separate bill of sale for a trade-in.

What if the buyer and I agree on a price but they pay me in installments?

Write the bill of sale for the full agreed-upon price, not just the down payment. Include a note stating that the buyer will pay the remainder by a certain date. Both of you should sign this agreement. However, understand that once you sign the bill of sale, the car legally belongs to the buyer even if they have not finished paying. If they stop paying, you may have difficulty getting the car back. Consider keeping the title in your name until the final payment is made, or consult a lawyer about a payment agreement.

Can I use a bill of sale from a different state?

You can, but it is better to use the form from the state where the vehicle will be registered. If you are selling to someone in another state, ask them which state's form they need, or use the form from their state. The buyer will need to register the vehicle in their home state, so their state's DMV will review the bill of sale. Using their state's official form makes the registration process faster.

What if I lost my copy of the bill of sale after the sale?

Contact the buyer and ask for a copy. If they cannot provide one, you can ask your state's DMV for a record of the title transfer, which will show the date the vehicle was registered in the buyer's name. This proves you no longer owned it as of that date. Keep this DMV record in case you need proof later.

Do I need to notarize a bill of sale if my state does not require it?

No, but it does not hurt. Notarization adds an extra layer of proof that both parties signed the document willingly and that the signatures are genuine. If you think there is any chance of a dispute later, notarization is worth the small cost. Otherwise, a witnessed signature or no witness at all is fine if your state allows it.