A bill of sale is a written record that you sold a vehicle to someone else on a specific date for a specific price

It is not the same as a title document. The title proves who owns the vehicle; the bill of sale proves the transaction happened and documents the terms. When you sell a car, truck, or motorcycle, a bill of sale creates a paper trail showing that money changed hands, what condition the vehicle was in at handover, and who is responsible for it from that moment forward. Without one, you have no proof you sold it, which matters if the buyer later damages property, gets into an accident, or stops paying a loan on the vehicle.

A bill of sale protects both the seller and the buyer. For you as the seller, it shows you no longer own the vehicle and are not liable for what happens to it after the sale. For the buyer, it documents what they paid and what they received, which is important if a dispute arises later about the vehicle's condition or the terms of the deal.

Key Takeaways

  • A bill of sale is a written agreement between seller and buyer that documents the vehicle, the sale price, the date, and the condition at handover.
  • You should complete a bill of sale before you hand over the keys, even if you are selling to a friend or family member.
  • Most states do not require a specific form, but your state's Department of Motor Vehicles website usually offers a template you can read and print.
  • Both the seller and buyer should sign and date the bill of sale, and each should keep a copy for their records.
  • A bill of sale does not transfer the title; you still need to complete the title transfer through your state's DMV after the sale.

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 vehicle. It should also list the odometer reading at the time of sale, the sale price, the date of the sale, and the names and addresses of both the seller and the buyer. Some bills of sale also include a statement about the vehicle's condition—whether it is sold as-is, whether any repairs are needed, or whether the seller is making any promises about how it runs.

The odometer reading is important because it creates a record of mileage at the time of transfer. If the buyer later claims the odometer was rolled back or the mileage was misrepresented, the bill of sale is evidence of what the reading was when they took possession. The condition statement protects the seller by making clear that the vehicle is being sold in its current state, with no hidden promises about repairs or mechanical work.

Where to find a bill of sale form for your state

Most states do not legally require you to use a specific form, but your state's Department of Motor Vehicles website usually provides a template. Search "[your state] DMV bill of sale" and you will find a PDF you can read, print, and fill out by hand or on your computer. Some states call it a "bill of sale," others call it a "sales agreement" or "vehicle sales form." The name varies, but the purpose is the same.

If your state does not offer an official form, you can use a generic bill of sale template from a legal document website or create one yourself that includes all the information listed above. The form does not have to be fancy or use legal language—it just needs to be clear, signed by both parties, and dated. If you are selling through a dealership or auction house, they will provide their own bill of sale form, which you will sign as part of the transaction.

How to complete and sign a bill of sale

Fill in all the blanks with accurate information. Write the VIN exactly as it appears on the title document, not from memory. Write the odometer reading as it appears on the instrument cluster at the moment of sale. Write the sale price in both numbers and words to avoid confusion—for example, "Five Thousand Dollars ($5,000.00)." If you are selling the vehicle as-is with no warranty, write that clearly. If you are making any promises about repairs or condition, write those too.

Both the seller and the buyer must sign and date the bill of sale in front of each other. Some states recommend having the signatures witnessed or notarized, though it is not always required. Check your state's DMV website to see if notarization is recommended for your state. Make at least two copies—one for the seller and one for the buyer. Keep your copy in a safe place with your other vehicle records. The buyer will need their copy when they register the vehicle in their name.

The difference between a bill of sale and a title transfer

A bill of sale documents that a sale happened. A title transfer documents that ownership has changed. They are two separate steps. After you sell the vehicle and both parties sign the bill of sale, you still need to complete the title transfer through your state's DMV. This usually means signing the back of the title document, filling out a transfer form, and submitting both to the DMV along with a fee. The buyer then registers the vehicle in their name.

The bill of sale is your proof that you completed your part of the sale. The title transfer is the legal record that the state recognizes. If you sell a vehicle and do not transfer the title, you remain the registered owner in the state's records, which means you could be held liable if the buyer gets into an accident or the vehicle is used in a crime. Always complete both the bill of sale and the title transfer.

What to do if you lose the bill of sale

If you sold a vehicle years ago and no longer have the bill of sale, you cannot get a copy from the DMV because the DMV does not keep copies of bills of sale—only the state keeps the title record. If you need proof that you sold the vehicle, your best option is to contact the current owner and ask them for a copy of the bill of sale they received from you. If you cannot reach them, you can request a copy of the title history from your state's DMV, which will show when the title was transferred out of your name.

Going forward, keep your copy of the bill of sale with your vehicle records or in a safe deposit box. If you sell multiple vehicles, keep a folder with copies of all the bills of sale you have signed. This protects you if a question ever arises about when you sold a vehicle or what condition it was in at the time.

Selling a vehicle with an outstanding loan

If you still owe money on the vehicle, the lender's name will appear on the title as a lienholder. You cannot transfer the title to the buyer until the loan is paid off. The bill of sale can still be signed and dated, but the title transfer cannot happen until the lien is released. Usually, you pay off the loan at or before the sale, the lender releases the lien, and then you sign the title over to the buyer. Some buyers will pay the seller and the lender directly to speed up the process.

Make sure the bill of sale clearly states whether the vehicle is being sold with the loan still attached or whether the loan will be paid off before transfer. If the buyer is taking over the loan, that should be documented in writing. If there is any confusion about who is responsible for the loan, contact your lender before you sign anything. The bill of sale and the loan agreement are separate documents, and the buyer is not automatically responsible for a loan just because they buy the vehicle.

Frequently Asked Questions

Do I need a bill of sale if I am selling to a family member?

Yes. Even though you trust the person, a bill of sale protects both of you. It shows that money changed hands and that the vehicle is no longer your responsibility. If the family member gets into an accident or stops paying a loan on the vehicle, the bill of sale proves you are not the owner anymore.

Can I sell a vehicle without a bill of sale?

Legally, most states do not require a bill of sale to complete a sale. However, without one you have no proof the sale happened, which creates risk for both parties. If the buyer later claims you promised repairs you did not make, or if they get into an accident and you are sued, you have no documentation to protect yourself. A bill of sale takes ten minutes and costs nothing.

What if the buyer and I disagree on the sale price after we sign?

The bill of sale is a binding record of what you both agreed to. If the price is written on the bill of sale and both parties signed it, that is the agreed price. If a dispute arises, the bill of sale is the evidence of the contract. This is why it is important to make sure the price is correct before you both sign.

Does a bill of sale mean the buyer owns the vehicle?

A bill of sale proves the sale happened, but it does not transfer ownership. Ownership transfers when the title is transferred through the DMV. The buyer should not drive the vehicle or register it until the title is in their name. Until then, you remain the registered owner in the state's records.

Should I keep the bill of sale after I sell the vehicle?

Yes. Keep your copy for at least three to five years. If a question ever arises about when you sold the vehicle, what condition it was in, or what price you received, the bill of sale is your proof. Store it with your other important documents or in a safe place at home.