What a bill of sale is and why you need one

A bill of sale is a written record that you sold your car to someone else on a specific date for a specific price. It names the seller (you), the buyer, describes the vehicle by year, make, model, and VIN, and states the sale price. Both parties sign it. That's it—it's a document that proves the transaction happened.

You need one because it protects both you and the buyer. For you, it proves you no longer own the car on a specific date, which matters if something happens to it afterward—an accident, a parking ticket, a loan default. For the buyer, it proves they paid for the car and have a right to register it in their name. Without it, disputes over who owns the vehicle or who is responsible for it become much harder to resolve.

A bill of sale is not the same as a title. The title is the legal ownership document issued by your state's DMV or equivalent agency. The bill of sale is the transaction record you create. Many states require you to submit a bill of sale to the DMV when you transfer the title, and some states have a specific form you must use.

Key Takeaways

  • A bill of sale documents the date, price, and parties involved in a car sale, and both the seller and buyer must sign it.
  • Your state may require a specific bill of sale form or may accept a generic template; check your state DMV website to find out which.
  • Include the vehicle's year, make, model, VIN, odometer reading, and any known mechanical issues or "as-is" condition statement.
  • Keep a copy for your records and give the original to the buyer; submit a copy to your state DMV along with the title transfer paperwork.
  • A bill of sale protects you from liability after the sale and protects the buyer by documenting their purchase and right to register the vehicle.

What information to include on a bill of sale

Start with the basics: the date of sale, your full name and address, the buyer's full name and address, and the sale price in dollars. Write out the number in words as well as numerals (for example, "One Thousand Five Hundred Dollars ($1,500)") to prevent disputes over the amount.

Describe the vehicle completely. Include the year, make, model, body style (sedan, SUV, truck), color, VIN, license plate number, and current odometer reading. The VIN is critical because it uniquely identifies the car and prevents confusion if the buyer or seller owns multiple vehicles of the same make and model.

State the condition of the vehicle. Many bills of sale include an "as-is" clause, meaning the buyer accepts the car in its current condition with no warranty from you. If you know of specific mechanical issues—transmission problems, a check engine light, rust, a cracked windshield—write them down. This protects you by showing the buyer knew about the problems when they purchased the car. If the sale includes any warranty or may provide from you, write that down too.

Add a line stating that the buyer has inspected the vehicle and accepts it in the condition described. This prevents the buyer from claiming later that they didn't know about damage or mechanical issues.

State-specific requirements and forms

Some states provide an official bill of sale form on their DMV website. Examples include Texas (Form 14-317), Florida (HSMV 82053), and Georgia (Form T-7). If your state has an official form, use it—it ensures you include everything the DMV requires and makes the transfer process faster.

Other states do not mandate a specific form but accept any bill of sale that includes the required information. In those cases, you can use a generic template from your state's DMV website, a template from a legal document service, or even a handwritten bill of sale on plain paper, as long as both parties sign it and it contains the essential details.

Check your state DMV website before you sell. Search for "bill of sale" or "vehicle sale form" on the site. If your state requires a specific form, read it and fill it out. If your state accepts any format, you have more flexibility, but using a template from the DMV website is still the safest choice because it reflects what your state's staff expect to see.

How to complete and sign the bill of sale

Fill out all fields clearly in black or blue ink. Print legibly or type the document—handwriting is acceptable, but it must be readable. Do not leave blank fields; if a field does not explore (for example, if there is no lien on the vehicle), write "N/A" or "None" so it is clear you did not straightforward skip it.

Both you and the buyer must sign and date the document in person if possible. Some states allow electronic signatures or notarization, but in-person signatures are the safest and most widely accepted. If you are selling to a private buyer and cannot meet in person, you can mail the signed bill of sale to them, but this creates a gap in the chain of custody. If you are selling to a dealer, they will usually handle the bill of sale themselves and may provide their own form.

Make at least three copies: one for you, one for the buyer, and one to submit to the DMV along with the title transfer paperwork. Keep your copy in a safe place for at least three to five years in case a dispute arises later.

What happens to the bill of sale after the sale

After both parties sign, the buyer should take the bill of sale and the title to the DMV (or your state's equivalent agency) to register the vehicle in their name. The DMV will record the transfer and issue a new title with the buyer's name on it. You do not need to be present for this step.

You should submit a copy of the signed bill of sale to your state DMV along with the title transfer form. Some states require this; others do not, but submitting it anyway creates an official record that you transferred ownership on that date. This protects you if the car is involved in an accident, crime, or unpaid parking tickets after the sale. The record shows you were no longer the owner.

If the buyer does not register the vehicle promptly and something happens to it—it is towed, impounded, or involved in an accident—you could still be held liable if there is no DMV record of the transfer. For this reason, some sellers ask the buyer to sign a statement confirming they received the title and bill of sale and agree to register the vehicle within a certain number of days (often 10 to 30 days). This is not legally required in most states, but it creates a paper trail if problems arise.

Common mistakes to avoid

Do not leave the sale price blank or write "cash" without a dollar amount. The DMV and courts need a specific number to process the transfer and to calculate sales tax if your state charges it. If you are selling the car for less than market value (to a family member, for example), write the actual price you agreed on, not an inflated number. Misrepresenting the sale price on a bill of sale can be considered fraud.

Do not sign a blank bill of sale and let the buyer fill in the details later. Once you sign, you are attesting that the information is accurate. If the buyer changes the price, the vehicle description, or the date after you sign, you could be held responsible for those changes.

Do not assume the buyer will register the vehicle. Follow up with them after a week or two to confirm they have submitted the paperwork to the DMV. If they have not, ask them when they plan to. If they delay indefinitely, you may need to contact your state DMV yourself to report the transfer and protect yourself from liability.

Private sale versus dealer sale

If you are selling to a private buyer, you create and provide the bill of sale. If you are selling to a car dealer, the dealer will usually create the bill of sale or provide their own form. Dealer forms are often more detailed and may include additional clauses about warranties, trade-in value, or financing. Read the dealer's form carefully before signing, and ask questions about any terms you do not understand.

In either case, the bill of sale serves the same purpose: it documents the transaction and protects both parties. The main difference is who controls the paperwork. With a private sale, you have more control and responsibility. With a dealer, the dealer handles most of the administrative work, but you still need to may support the title transfer is completed correctly.

Frequently Asked Questions

Do I need a notary to sign a bill of sale?

Most states do not require notarization for a bill of sale, but some recommend it for extra protection. A notary public witnesses your signature and verifies your identity, which makes the document harder to dispute later. If your state does not require it, notarization is optional but can be worth the small fee (usually $5 to $15) for the added security.

What if I sell the car but the buyer never registers it?

Submit a copy of the signed bill of sale to your state DMV along with a letter explaining that you sold the vehicle on a specific date. Include the buyer's name and the VIN. This creates an official record of the transfer. Without this record, you could be held liable for parking tickets, tolls, or accidents involving the vehicle after the sale date.

Can I sell a car without a bill of sale?

Legally, it depends on your state. Some states require a bill of sale; others do not. However, selling without one is risky for both you and the buyer because there is no written proof of the transaction. Even if your state does not require one, creating a bill of sale is a best practice that protects you from future disputes or liability.

What if the buyer wants to pay in installments?

Write the total sale price on the bill of sale, not the installment amount. The bill of sale documents the full transaction price. If you are financing part of the sale yourself, create a separate promissory note or loan agreement that outlines the payment schedule, interest rate (if any), and what happens if the buyer defaults. Do not rely on the bill of sale alone to document a payment plan.

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

Yes. Keep your copy for at least three to five years. If a dispute arises—the buyer claims you misrepresented the vehicle's condition, or you are contacted about an accident or unpaid ticket—your copy of the signed bill of sale is your proof that you transferred ownership on a specific date and that the buyer accepted the vehicle in the condition you described.