A bill of sale is a written record that you sold a vehicle to someone else, and it protects both the seller and the buyer
A bill of sale is a document that shows a vehicle changed hands. It lists the seller, the buyer, the vehicle details (make, model, year, VIN), the sale price, and the date of the transaction. When you sign it, you are saying you owned the vehicle and sold it; when the buyer signs, they are saying they bought it at that price. It is not the same as a title — the title proves ownership, and the bill of sale proves the sale happened.
Most states do not require a bill of sale by law, but many do require it for the buyer to register the vehicle in their name. Even where it is not legally required, you should create one anyway. For a seller, it shows you no longer own the vehicle and are not responsible for what the buyer does with it after the sale. For a buyer, it proves they paid for the vehicle and have a record of the transaction if a dispute arises later.
You can write a bill of sale yourself on plain paper, use a template from your state's DMV website, or buy a pre-printed form from an office supply store. The exact format does not matter as long as it includes the key information and both parties sign and date it. Each person should keep a copy.
Key Takeaways
- A bill of sale documents that a vehicle was sold and at what price, and protects both the seller from liability and the buyer from ownership disputes.
- Most states do not legally require a bill of sale, but many require it before the buyer can register the vehicle, so check your state's DMV rules.
- You can write a bill of sale yourself, read a template from your state DMV website, or use a pre-printed form from an office supply store.
- Both the seller and buyer must sign and date the bill of sale, and each should keep a copy for their records.
- A bill of sale is separate from the title; the title proves ownership, and the bill of sale proves the transaction occurred.
What information goes on a bill of sale
A bill of sale should include the seller's full name and address, the buyer's full name and address, and the date of the sale. It must also have the vehicle's year, make, model, color, and Vehicle Identification Number (VIN) — you can find the VIN on the driver's side of the dashboard or on the title itself.
The sale price should be listed, even if the vehicle was a gift or trade-in. If it was a gift, you can write "gift" or "$0" depending on what your state's DMV prefers — check their website first. Include the vehicle's condition (for example, "as-is" or "with warranty") and note whether any liens or loans are still attached to the vehicle. If the buyer is assuming a loan, that should be stated clearly.
Both the seller and buyer must sign and print their names. Some states require the signatures to be notarized, though most do not. Check your state's DMV website to see if notarization is required where you live.
When you must have a bill of sale
Requirements vary by state. Some states require a bill of sale before the buyer can register the vehicle; others treat it as optional but strongly recommended. A few states have their own official bill of sale form that you must use.
If you are selling a vehicle privately (not through a dealer), your state's DMV website will tell you whether a bill of sale is required for registration. If you are buying a vehicle from a private seller, ask them for one even if your state does not require it — it is your proof of purchase and protects you if the seller later claims they did not sell it or if there is a lien on the title.
Dealers typically handle the bill of sale as part of the sale paperwork, so you do not need to create one yourself when buying from a dealership.
How to create a bill of sale
Start by visiting your state's DMV website and searching for "bill of sale." Many states provide a free template or form you can read and print. If your state does not have an official form, you can write one yourself on plain paper or use a generic template from an office supply store or online.
Fill in all the required information: seller name and address, buyer name and address, vehicle details, VIN, sale price, and date. Be as specific as possible — use full legal names, not nicknames, and write out the full address including ZIP code. Sign and date the document in front of the buyer, and have them sign and date it as well. If your state requires notarization, take the signed document to a notary public before the buyer takes the vehicle.
Make at least two copies — one for the seller and one for the buyer. If there is a lien on the vehicle, the lender may also need a copy. Keep your copy in a safe place; you may need it later if a question arises about the sale.
Bill of sale and title transfer
A bill of sale and a title are two different documents that work together. The bill of sale proves the sale happened; the title proves who owns the vehicle. When you sell a vehicle, you sign the back of the title to transfer ownership to the buyer. The buyer then takes both the signed title and the bill of sale to the DMV to register the vehicle in their name.
In some states, the DMV will not process a title transfer without a bill of sale. In others, the bill of sale is optional but recommended. Either way, the buyer cannot legally own the vehicle until the title is transferred and the registration is in their name.
If you are the seller, signing the title and providing a bill of sale removes your legal responsibility for the vehicle once the buyer takes it. If you are the buyer, having both documents protects you by proving you purchased the vehicle and have the right to register it.
What to do if you lose the bill of sale
If you have already sold the vehicle and no longer have a copy of the bill of sale, contact the buyer and ask them to provide a copy. If you cannot reach the buyer or they do not have one, you can create a new one based on your records — write down what you remember about the sale (date, price, vehicle details) and have the buyer sign it if possible.
If you are the buyer and have lost your copy, ask the seller for another one. If the seller will not provide it or you cannot contact them, you can still register the vehicle using the title alone in most states, though having the bill of sale makes the process smoother. Check your state's DMV website for what to do if you are missing documentation.
If a dispute arises later — for example, the seller claims they did not sell the vehicle, or the buyer claims they paid a different price — a bill of sale is your proof of what actually happened. This is why keeping a copy is important.
Bill of sale for vehicles with liens
If the vehicle has an outstanding loan or lien, the bill of sale should state this clearly. Write something like "Vehicle subject to lien held by [lender name]" or "Buyer assumes existing loan with [lender name]." This tells the buyer they are responsible for paying off the loan and protects the seller by showing they disclosed the lien.
The buyer should not take the vehicle until the lien is resolved. Usually, the seller pays off the loan at closing, and the lender releases the lien from the title. The buyer then receives a clean title with no lien. If the buyer is assuming the loan, they need to contact the lender and get approval before the sale is final.
Never sell a vehicle with a lien without disclosing it in writing on the bill of sale. If you do, the buyer may discover the lien later when they try to register the vehicle, and you could face legal trouble for selling a vehicle you did not fully own.
Frequently Asked Questions
Do I need a bill of sale if I am selling a vehicle to a family member?
Yes. Even though it is a family member, a bill of sale protects both of you by documenting the transaction. If the vehicle is a gift, you can write "gift" or "$0" as the price, but you should still have both parties sign the document. This prevents confusion later if there is a dispute about whether the vehicle was sold or given.
Can I write a bill of sale on a napkin or piece of scrap paper?
Technically yes, but do not. Use a proper form or template so you include all required information and both parties sign it clearly. A napkin is harder to read, easier to lose, and looks unprofessional if a dispute arises. Spend five minutes downloading a template or buying a pre-printed form instead.
What if the buyer and I disagree on the sale price after we sign the bill of sale?
The bill of sale is your proof of what price was agreed to. If the buyer claims a different price, the signed bill of sale is evidence of the actual transaction. This is why it is important to write down the correct price and have both parties sign. If a dispute goes to court, the bill of sale is your documentation.
Does a bill of sale need to be notarized?
Most states do not require notarization, but a few do. Check your state's DMV website to find out. Even if it is not required, notarization adds an extra layer of proof that both parties signed the document willingly, so it can be worth doing if you are concerned about a future dispute.
Can I sell a vehicle without a title if I have a bill of sale?
No. A bill of sale proves the sale happened, but the title proves ownership. You cannot legally transfer ownership without the title. If you have lost the title, you must get a replacement from your state's DMV before you can sell the vehicle. The buyer will need both the signed title and the bill of sale to register the vehicle in their name.