A bill of sale is a written record that you sold a car to someone else, signed by both of you
A bill of sale is a document that proves ownership changed hands. It shows the seller's name, the buyer's name, the vehicle details (make, model, year, VIN), the sale price, and the date of the transaction. Both the seller and buyer sign it. The document protects both parties: the seller proves they no longer own the car, and the buyer has written proof of purchase in case of disputes.
You need a bill of sale before you can transfer the title at your state's DMV or equivalent agency. Some states require it by law; others don't, but having one is still the safest approach. Without it, you have no paper trail if something goes wrong after the sale — a buyer could claim they never paid, or a seller could claim they never agreed to sell.
A bill of sale is not the same as a title. The title is the legal document that names the owner; the bill of sale is the receipt that proves the transaction happened. You'll file the title with your state agency. The bill of sale stays with you and the buyer as your records.
Key Takeaways
- A bill of sale must include both parties' names and signatures, the vehicle's VIN, make, model, year, the sale price, and the date of sale.
- Your state may require a bill of sale by law, or it may be optional — check your state DMV website to confirm what's required before you sell.
- The seller keeps one copy and the buyer keeps one copy; you do not file the bill of sale with the state, only the title.
- A bill of sale protects both parties by creating a written record that the transaction occurred and at what price.
- You can use a template from your state DMV, a generic template, or write one yourself as long as it includes all required information.
What information must go on a bill of sale
The bill of sale should include the seller's full name and address, the buyer's full name and address, the vehicle identification number (VIN), the year, make, and model of the vehicle, the sale price in dollars, the date of the sale, and the odometer reading. Both the seller and buyer must sign and print their names. Some states also ask for the vehicle's license plate number or the condition of the vehicle (as-is, with warranty, etc.).
Check your state's DMV website for a specific form or template. Many states provide an official bill of sale form that you can read and print. If your state doesn't provide one, you can use a generic template from a legal document site or write one yourself in plain language, as long as you include all the information above. The document does not need to be notarized in most states, but some states do require notarization — verify this before you sign.
When to create and sign the bill of sale
Create the bill of sale before or at the moment of the sale, not after. Both parties should sign it at the same time, ideally in person so you can both verify the information is correct. If you're selling privately (not through a dealer), meet in a safe public place and bring a copy of your title and the vehicle keys so the buyer can inspect the car and confirm the VIN matches.
Print two copies: one for the seller and one for the buyer. Each person should keep their signed copy. Do not file the bill of sale with the state — it stays with you as your record. The buyer will use their copy when they go to the DMV to transfer the title into their name.
How a bill of sale protects you as the seller
As the seller, the bill of sale proves you no longer own the vehicle as of the date you signed it. This is critical: if the buyer gets into an accident, racks up parking tickets, or commits a crime with the car after the sale, you have written proof that you were no longer the owner. Without a bill of sale, the state's records may still list you as the owner until the buyer completes the title transfer, leaving you liable for the vehicle's actions.
The bill of sale also documents the price you sold the car for, which matters for your taxes and for disputes. If a buyer later claims they paid less than they actually did, or refuses to pay at all, you have a signed document showing the agreed amount. Keep your copy in a safe place for at least three to five years.
How a bill of sale protects you as the buyer
As the buyer, the bill of sale is your proof of purchase. It shows you bought the car on a specific date for a specific price from a specific person. If the seller later claims the car was never sold, or if a lien holder (like a bank) tries to repossess the vehicle because the seller didn't pay off their loan, your bill of sale is evidence that you bought it in good faith.
Before you sign the bill of sale, verify that the VIN on the document matches the VIN on the car itself (usually on the driver's side dashboard and on the door jamb). Check that the seller's name matches the name on the title. If anything doesn't match, do not sign — this could indicate the car is stolen or has a lien on it. After you sign, take your copy to the DMV along with the title to transfer ownership into your name.
State-specific requirements and variations
Bill of sale requirements vary by state. Some states require notarization; others don't. Some states have an official form you must use; others accept any written document as long as it has the required information. A few states don't legally require a bill of sale at all, but having one is still recommended as proof of the transaction.
Before you sell or buy a car, visit your state's DMV website and search for "bill of sale" to find out what's required in your state. read the official form if one exists, or confirm what information must be included if you're writing your own. Some states also have specific rules about whether the odometer reading must be included or whether the sale price must be disclosed. Following your state's rules prevents delays when the buyer tries to transfer the title.
What to do if you lose your bill of sale
If you've already sold the car and lost your copy of the bill of sale, contact the buyer and ask them to provide a copy or sign a duplicate. If you cannot reach the buyer, you can write a new bill of sale with the same information and have it notarized to create a record. Keep this new document with your tax records and insurance documents.
If you're the buyer and you've lost your copy, contact the seller and ask for a duplicate. You'll need the bill of sale to transfer the title at the DMV, so getting a copy from the seller is important. If the seller won't cooperate, you may still be able to transfer the title if you have other proof of purchase (like a bank transfer receipt or a check), but this varies by state — call your DMV to ask what documents they'll accept.
Frequently Asked Questions
Do I need a bill of sale if I'm trading in my car at a dealership?
No. Dealerships handle the paperwork themselves and will provide you with a receipt and a trade-in agreement. The dealership manages the title transfer on their end. You do not need a separate bill of sale for a trade-in.
Can I use a bill of sale from the internet, or do I have to use my state's form?
If your state provides an official form, use that — it ensures you include everything the DMV requires. If your state doesn't have an official form, a generic template from a legal document site is fine as long as it includes the seller's name, buyer's name, VIN, vehicle details, sale price, date, and both signatures. Verify your state's requirements first.
What if the buyer doesn't show up to sign the bill of sale?
Do not hand over the keys or the title until both of you have signed the bill of sale. The bill of sale is your proof that the sale happened. If the buyer won't sign, the sale is not complete — they may be trying to avoid a record of the transaction, which is a red flag.
Does the bill of sale need to be notarized?
Some states require notarization; most don't. Check your state DMV website to confirm. If notarization is required, you'll need to take the unsigned bill of sale to a notary public (usually available at banks, UPS stores, or online) along with a photo ID. The notary will watch you sign and then stamp the document. This costs between $5 and $15.
Can I sell a car without a bill of sale?
Legally, it depends on your state — some don't require one. However, selling without a bill of sale leaves both you and the buyer unprotected. Without written proof, disputes about the price, condition, or even whether the sale happened are harder to resolve. It's always safer to create one, even if your state doesn't require it.