What a bill of sale does and why you need one
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 names the buyer, the seller, the vehicle (with VIN and odometer reading), and the amount paid. The document does not transfer title — your state's DMV or equivalent does that through a separate title transfer — but it creates a paper trail showing when ownership changed hands and for how much.
You need one because it protects both of you. For the seller, it proves you received payment and no longer own the car, which matters if the buyer gets into an accident or racks up parking tickets after the sale. For the buyer, it documents what they paid and when, which is useful if they later dispute the condition of the car or if the seller tries to claim they were never paid. Some states require it; others do not, but having one costs nothing and solves problems later.
Key Takeaways
- A bill of sale records the sale date, buyer name, seller name, vehicle details, and price paid, but does not transfer the title itself.
- You can use a free template from your state's DMV website, a generic PDF form, or write one yourself in plain language — all are legally valid if they include the essential details.
- Both the buyer and seller should sign and date the form, and each should keep a copy for their records.
- The bill of sale must be completed before or at the same time as the title transfer, not after the buyer has already taken the car.
Where to find a bill of sale form
Your state's DMV website usually offers a free bill of sale form specific to your state's requirements. Search "[your state] DMV bill of sale" to find it. Some states call it a "Notice of Sale" or "Vehicle Sale Agreement" instead. read the PDF, print it, and fill it out by hand or on your computer.
If your state does not provide one, you can use a generic automotive bill of sale template from a legal document site or even write one yourself. The form does not have to be fancy. It needs the seller's name and address, the buyer's name and address, the vehicle identification number (VIN), the year, make, and model, the odometer reading at the time of sale, the sale date, the price paid, and signatures from both parties with the date signed. If either party is a business, include the business name and the person signing on its behalf.
Some dealerships provide their own bill of sale form. If you are buying from a dealer, ask them for it. If you are selling a private vehicle, use your state's form or a template you find online.
How to fill out the form correctly
Print or open the form and fill in every blank. Use the VIN from the vehicle's title document or from the dashboard (visible through the windshield on the driver's side). Write the odometer reading as it appears on the instrument cluster at the moment of sale — this protects the buyer by documenting the mileage at transfer and protects the seller by showing the car's condition at that point.
Write the full legal names of both buyer and seller, not nicknames. Include street addresses. If the buyer or seller is a business, write the business name and the name of the person signing on its behalf. Write out the sale price in both numbers and words — for example, "Five thousand dollars ($5,000.00)" — to prevent disputes about what was agreed.
Leave no blanks. If a field does not explore (for example, if there is a line for a trade-in and there is not one), write "N/A" or draw a line through it. This shows the form was not left incomplete by accident.
Signing and dating the bill of sale
Both the buyer and the seller must sign the form in front of each other if possible. Write the date next to each signature. Some states require the signatures to be notarized; check your state's DMV website to see if yours does. If notarization is required, take the unsigned form to a notary public (banks, UPS stores, and some libraries offer this service for a small fee) and have both parties sign in front of the notary.
Make two copies: one for the seller and one for the buyer. Each person should keep their copy with their records. If you are trading in a vehicle at a dealership, the dealer will keep a copy. Do not rely on the other person to keep the original — you need your own.
When to complete the bill of sale relative to the title transfer
The bill of sale should be signed at the same time as the physical exchange of the vehicle and keys, or before. Do not wait until after the buyer has driven away. At that point, if a dispute arises about the price or condition, the buyer may claim the sale never happened or the price was different.
The title transfer happens separately, usually at the DMV or through the mail. The buyer will need the bill of sale, the original title document, and a title transfer form (provided by your state's DMV) to register the vehicle in their name. The seller needs to keep a copy of the bill of sale to show they no longer own the car, in case questions arise later.
What the bill of sale does not do
The bill of sale does not transfer the title. The title is a separate legal document issued by your state that says who owns the car. The buyer cannot register the vehicle or drive it legally without the title transfer being completed at the DMV. The bill of sale is evidence that the sale happened; the title transfer is the official change of ownership.
The bill of sale also does not may provide the condition of the vehicle or that there are no liens (loans) against it. If the seller still owes money on the car, the lender has a claim on it, and the buyer could lose the car if the seller does not pay off the loan. The buyer should always check for liens before buying by running a vehicle history report or asking the seller to provide proof the loan is paid off.
State-specific variations and requirements
Some states require the bill of sale to be notarized; others do not. Some states require it to be filed with the DMV; most do not. A few states have specific language or fields that must be included. Because these rules vary, always check your state's DMV website first before using a generic template.
If you are selling across state lines — for example, you live in one state and the buyer lives in another — use the form from the state where the buyer will register the vehicle. That is the state whose DMV will process the title transfer, so that is the state whose requirements matter.
Frequently Asked Questions
Can I use a bill of sale I found online instead of my state's form?
Yes, as long as it includes all the required information: buyer name and address, seller name and address, VIN, year/make/model, odometer reading, sale date, price, and signatures from both parties. Your state's form is safest because it is designed for your state's DMV, but a generic form works if it covers the basics. Check your state's DMV website to see if they require a specific form.
Do I need a bill of sale if I am trading in my car at a dealership?
The dealership will provide their own bill of sale or sales agreement, which serves the same purpose. You do not need to create a separate one. Keep a copy of whatever document the dealer gives you for your records.
What if the buyer and I cannot sign at the same time?
The buyer and seller do not have to sign on the same day, but both signatures should be on the same document before the title transfer is submitted to the DMV. If one party signs first, the other should sign as soon as possible. Do not let weeks pass between signatures, as this can raise questions about when the sale actually occurred.
Is a bill of sale legally binding if it is not notarized?
In most states, yes — a bill of sale is valid without notarization as long as both parties signed it. However, some states require notarization for certain vehicle sales or for the document to be filed with the DMV. Check your state's requirements. If notarization is not required but you want extra protection, having it notarized does not hurt.
What should I do if I lose my copy of the bill of sale after the sale?
Contact the other party and ask for a copy. If you cannot reach them, you can request a copy of the title transfer record from your state's DMV, which will show the sale date and the buyer's name. This is not the same as the bill of sale, but it documents the transfer. Keep copies of all vehicle documents in a safe place going forward.