A vehicle bill of sale is a legal document that records the sale of a car, motorcycle, or other vehicle between two parties — a seller and a buyer. In exchange for a certain amount of money, the seller agrees to transfer ownership of the vehicle to the buyer. A vehicle bill of sale serves as an official record that a vehicle was sold on a certain date for a certain price.
What Is a Vehicle Bill of Sale?
A vehicle bill of sale is a legal document used to transfer ownership of a motor vehicle from one person to another. It proves that a sale took place. It is required to register a vehicle at the Department of Motor Vehicles (DMV).
A Vehicle Bill of Sale is commonly used for a car and can be referred to by other names:
- Car Bill of Sale
- Automobile Bill of Sale
- Auto Bill of Sale
- Auto Purchase Agreement
- Car Contract
- Car Purchase Agreement
- Vehicle Purchase Agreement
- DMV Bill of Sale
- Car Sale Receipt
What’s the Difference Between a Vehicle Bill of Sale and a Title?
After purchasing a vehicle, there are two primary documents you need to have in your possession, and that’s the bill of sale and the title. These documents are similar, but both are important in the sales process.
A bill of sale proves that a transfer between a seller and a buyer occurred. It would have details of the sale and the vehicle, such as the date, the name of the seller and buyer, the type and color of the vehicle, the selling amount, and the VIN number. The seller is responsible for creating the bill of sale, and most states require a bill of sale to register the vehicle.
Obtaining the title is the last step in the sales process. A title could be considered a complementary document to the bill of sale, as you require a bill of sale to get a title. But once you have the document, you will have legal ownership of the vehicle.
Once the buyer signs the document and the relevant government authority processes it, they will have legal proof of ownership. The title transfer will free the seller from the liabilities of the vehicle.
Why Do I Need a Vehicle Bill of Sale?
You need a bill of sale when buying or selling a vehicle privately to prove that the seller transferred the vehicle to its new owner. A vehicle bill of sale works much like a receipt and is typically required for:
- Tax purposes
- Vehicle Insurance
- DMV registration
A vehicle bill of sale also protects the buyer and seller from future disagreements over the vehicle’s condition or ownership. Because the document describes the vehicle’s exact condition at the time of sale, the buyer cannot later dispute any damage and demand a refund.
Paperwork You Need In A Car Sale
While a vehicle bill of sale can be used for any land vehicle, they are often used when someone wants to sell a car. Here’s the paperwork you need in order to make the sale of a car a smooth process and fully compliant with state laws.
Bill of Sale
The bill of sale serves as evidence that a transfer of ownership took place between parties. This document sometimes isn’t required if you’re living in certain states. But here’s a list of states that do require a bill of sale to prove ownership [1] :
- Alabama
- Arkansas
- Connecticut
- Hawaii
- Idaho
- Maine
- Rhode Island
- Vermont
- Washington
- Wyoming
Even if a bill of sale isn’t a requirement in your state, it’s always recommended to have the document for your own records.
The Title
This document certifies legal ownership of the vehicle, so it’s important to have this in your possession after the sale. If you’re the seller of the vehicle, make sure you have dealt with all obligations and liabilities attached to the vehicle before you sell it. This includes paying off any outstanding liens or debts or notifying the buyer before the sale. If you have lost the title, you can apply for a duplicate at your local DMV.
Notice Of Transfer/Release of Liability
A notice of transfer is a document that you provide for the DMV to officially state that you are no longer the owner of a vehicle. You can also request and fill in a release of liability form. While a transfer of ownership can be achieved with a title, a seller will still have to wait for the buyer to sign the document.
As a seller, you can protect yourself from future liabilities by notifying the DMV about the sale. It is not a requirement for you to notify them, but it’s good practice to do so anyway.
Service Records
When selling a vehicle, you should always include documentation about its maintenance history. This is especially important if you have told the buyer the vehicle is in good condition. Having proof of this is a positive indicator to the buyer and increases their confidence in the sale.
Owner’s Manual
The owner’s manual isn’t a legal requirement in a sale, but it’s helpful for the buyer if they ever have issues with the car. If you lost the manual, there are resources online that allow you to get it in PDF format.
Warranty Information
You should always provide the warranty documentation in a car sale. It should include the date the original owner purchased the car, the remaining warranty period, and the contact information of the warranty provider.
Buying a Car ‘As Is’
When you buy a car, you will probably come across the term “as is” in the description. This is especially the case if it’s a private party sale. The term refers to the vehicle’s warranty status, and it means the vehicle does not come with a warranty.
Once the sale has been made, any issues the buyer discovers will no longer be the seller’s responsibility. For example, if the car breaks down shortly after the buyer purchases the vehicle, they will have to pay for repairs themselves.
What Is a Private Party Sale of a Car??
A private party sale is when a buyer purchases a car from an individual instead of a dealer. These kinds of sales are typically made with cash and can have some benefits compared to going to a dealership. Private party sales tend to be cheaper and have no dealer fees. However, they are much less regulated than dealerships, which can be a drawback.
If you’re interested in a private party sale, make sure you have all the paperwork for buying a used car from a private seller.
How to Use a Vehicle Bill of Sale For Buying or Selling a Car
If you would like to know how to get a bill of sale for a car, follow these step-by-step instructions for a smooth transaction and to ensure the document is legally valid.
Step 1 – Negotiate the Terms of the Sale
To enter the agreement, both parties need to decide on a payment method and any conditions of the sale, such as a warranty or financing. If a warranty is not included, the vehicle is sold “as-is,” with the buyer accepting any faults or damage that exist at the time of sale.
Step 2 – Write down the details of both parties
The buyer and seller need to fill out their contact information on the vehicle bill of sale. This includes their names and addresses. The selling price of the vehicle should also be mentioned.
- An example where to include details of the parties involved in a vehicle bill of sale
Step 3 – Fill out the vehicle details
In addition, you must fill in the following sections, which can vary by state:
- Model
- Make
- Year
- Price
- Body style
- Vehicle condition
- Whether sales tax is included
- Warranty information (if applicable)
- Payment type
- Vehicle Identification Number (VIN)
- Odometer disclosure statement
Vehicle Identification Number (VIN): The VIN is a unique 17 character code used to track the vehicle’s registration, and whether it was stolen or involved in an accident. You can find your car’s VIN on the driver’s side windshield or inside the driver’s side door. It’s also written on the vehicle’s certificate of title.
Odometer disclosure statement: Federal law requires that a vehicle’s mileage (measured by the vehicle’s odometer) is provided and verified by the seller when the vehicle is transferred or sold [2] . This statement can be part of the vehicle bill of sale or submitted as an additional document in some states. After filling out the mileage, the seller states whether the mileage is accurate, or if there is a discrepancy caused by the odometer.
- An example where to include vehicle information in a vehicle bill of sale
Step 4 – Gather Related Documents
Before the sale is finalized, you need to make sure you have all the car sale paperwork. The seller should provide the certificate of title (the “pink slip”) to the buyer. If the seller doesn’t have the certificate of title, the buyer can request a new one from the DMV. This usually takes 10–14 working days and costs around $20 (depending on the state and vehicle).
It’s also recommended that the buyer obtain a copy of the seller’s photo ID to check that their information is the same across all documents and that they can legally sell the vehicle.
Step 5 – Sign the document to complete the sale
To complete the sale, both parties sign, and date the vehicle bill of sale and keep a copy for their records.
Finally, the seller gives possession of the vehicle in exchange for the payment and transfers the certificate of title.
- An example where to include signatures in a vehicle bill of sale
What Should Be Included in a Vehicle Bill of Sale?
For a Vehicle Bill of Sale to be valid, you must ensure that it has the following parts:
-
Details of the parties involved in the sale – It should include the following:
- Names
- Addresses
- Signatures
- The date of the sale
-
The description of the vehicle – Remember to keep the description relevant to the sale. For example, if the vehicle is a car, you should mention:
- Year
- Make and model
- VIN (Vehicle Identification Number)
- Mileage
- License plate number
- The selling price of the vehicle – You should also state the reduced price if the vehicle is a partial gift. If the vehicle is a gift then this should also be stated in the bill of sale.
- Warranty Information – If the vehicle has a warranty attached to it, mention this in the bill of sale.
State DMV Locations and Bill of Sale Forms
| State | DMV Location | Is a Vehicle Bill of Sale Required? | Vehicle Bill of Sale Form |
|---|---|---|---|
| Alabama (AL) | Alabama Vehicle Licensing Offices | Yes | Alabama Bill of Sale |
| Alaska (AK) | Alaska Division of Motor Vehicles (DMV) Offices | No | Alaska Bill of Sale |
| Arizona (AZ) | Arizona Motor Vehicles Division (MVD) Locations | No | Arizona Bill of Sale |
| Arkansas (AR) | Arkansas Department of Finance and Administration (DFA) Office Locations | Yes | Arkansas Bill of Sale |
| California (CA) | California Department of Motor Vehicles (DMV) Field Offices | No | California Bill of Sale |
Vehicle Bill of Sale Template
Download an example fillable vehicle bill of sale below as either a PDF or Docx:
Vehicle Bill of Sale
vehicle-bill-of-saleVehicle Bill of Sale Frequently Asked Questions
Do you need a bill of sale to register a car?
No, you don’t need a bill of sale to register a vehicle. Although this depends on the state. For example, you can register a vehicle with just a title in Arkansas as long as it has all the required information. But it’s recommended to get a bill of sale regardless of what state you’re in.
You should check your state’s DMV website to find out the requirements for vehicle registration.
Does a vehicle bill of sale need to be notarized?
No, a bill of sales does not need to be notarized. Usually, notarization by an official legal representative isn’t a requirement for your bill of sale to be valid. However, a vehicle bill of sale does need to be notarized in the following states:
- Louisiana
- Maryland
- Montana
- Nebraska
- New Hampshire
- West Virginia
No matter what your state requirements are, it can be helpful to get your bill of sale notarized anyway as it provides proof that the seller transferred ownership of the vehicle to you.