Table of Contents
- The Basics: What is an Auto Bill of Sale?
- When an Auto Bill of Sale is Needed
- The Consequences of Not Having an Auto Bill of Sale
- The Most Common Auto Bill of Sale Situations
- What Should be Included in a Simple Auto Bill of Sale
1. The Basics: What is an Auto Bill of Sale?
An auto bill of sale is a legal document that memorializes the sale of a car, motorcycle, or other vehicle between two parties — a seller and a purchaser.
In exchange for a certain amount of money, the seller agrees to transfer ownership of an automobile to the purchaser.
A bill of sale is generally used for personal property or chattel that is tangible and movable, such as a car, motorcycle, or even a dragon.
A simple auto bill of sale serves as proof of purchase and will include the following elements:
- The “Seller” or “Grantor”: the person who currently owns the item being sold
- The “Purchaser” or “Grantee”: the person buying the item or becoming the new owner
- The “Property”: a complete description of the item being sold and its current condition
- The “Payment Terms”: amount of money paid or “value received” by the Purchaser
- The “Warranty”: whether the good is being sold “as is” or if there are any guarantees
- The “Date”: when the item was sold by the Seller to the Purchaser
As a reference, people often call an auto bill of sale by other names:
- As Is Car Bill of Sale
- Auto Purchase Agreement
- Auto Sale Receipt
- Automobile Bill of Sale
- Automotive Bill of Sale
- Car Bill of Sale
- Car Contract
- Car Purchase Agreement
- Car Purchase Receipt
- Car Sale Agreement Form
- Car Sale Contract
- Car Sale Document
- Car Sale Receipt
- DMV Bill of Sale
- Motor Vehicle Bill of Sale
- Private Vehicle Bill of Sale
- Used Car Bill of Sale
- Vehicle Bill of Sale
- Vehicle Sale Receipt
A bill of sale applies to personal property that can be easily moved, not real property like land or buildings (i.e. home, cabin, apartment, or condo).
In addition to cars and motor vehicles, an auto bill of sale may also be used for a wide variety of other vehicles, including:
- Water
- Boat or Yacht
- Jet Ski
- Recreational
- ATV
- 3 Wheeler
- 4 Wheeler
- Snowmobile
- Aircrafts
- Airplane
- Helicopter
- Trailer
- Boat Motor and Trailer
- Horse Trailer
- Travel Trailer
- Utility Trailer
- Mobile Home*
- Motorhomes
- Recreational Vehicle (RV)
* Mobile homes are treated as personal property by the IRS in a 2008 memo when sold as retail and placed on rental property like a trailer park or mobile home park and community
Is Satan your motor? If so, maybe you don’t need a Bill of Sale for a car – maybe you need a Bill of Sale for your Soul.
2. When an Auto Bill of Sale is Needed
Why do I need an auto bill of sale?
An auto bill of sale serves as an official record that a vehicle was sold on a certain date for a certain price.
To formally register a car, motorcycle, or boat, many states require an auto bill of sale with specific information like an odometer reading or vehicle identification number (VIN).
An auto bill of sale provides written proof of the following:
- a transaction actually occurred
- the item truly belonged to the Seller
- the Seller intended to transfer ownership of the item to the Purchaser
- which item was transferred (i.e. year, model, make, serial number, unique markings)
- the Seller made promises and assurances as to the condition of the item or sold it “as is”
Further, there are generally two types of bill of sales.
1. A “conditional” bill of sale
A conditional bill of sale transfers ownership of the item to the purchaser only after they have paid all money owed to the seller.
For example, an auto bill of sale is first used to document that both the seller and purchaser agree to transfer ownership of an item like a car if certain conditions are fulfilled. Then, a promissory note is used to record how the purchaser will pay the seller over time.
2. An “absolute” bill of sale
An absolute bill of sale proves a transaction took place and that ownership has been completely transferred to the purchaser without any restrictions.
In contrast to a conditional bill of sale, an absolute bill of sale is used when the purchaser is able to pay the entire amount for an item immediately. Unlike a conditional bill of sale, the seller no longer has ownership claims to the item in an absolute bill of sale.
3. The Consequences of Not Having an Auto Bill of Sale
How could an auto bill of sale help me?
A simple bill of sale could ward off some of these preventable consequences:
[table “31” not found /]What happens if I do not have an auto bill of sale?
An auto bill of sale is one piece of evidence needed to document or transfer ownership. For motor vehicles, a certificate of title and registration is also needed to complete the transfer of ownership.
When buying or selling cars, check your state’s Department of Motor Vehicle (DMV) or Motor Vehicle Administration (MVA) for an auto bill of sale form and title transfer requirements specific to your jurisdiction.
Without an auto bill of sale to complete a proper title transfer, the seller may continue to be on the hook for any fees, fines, violations, or criminal shenanigans the new owner (i.e. the “purchaser”) incurs while using the item. In less extreme situations, if you sold your car to someone off of Craigslist without an auto bill of sale and title transfer, you may still be on the hook for future speeding tickets that should actually be sent to the new owner.
4. The Most Common Auto Bill of Sale Situations
Who needs an auto bill of sale?
An bill of sale could be used in any number of transactions ranging from automotive vehicles to watercraft vessels.
Here are just a few people who could commonly benefit from a simple bill of sale:
Possible Sellers and Purchasers
- Individuals
- Family members
- Friends
- Users of Craigslist or online car sale platforms (i.e. autotrader.com or cars.com)
- Organizations
- Car Dealers
- Businesses and Nonprofits (i.e. buying a car for transportation needs)
5. What Should be Included in a Simple Auto Bill of Sale
What should be included in an auto bill of sale?
A simple auto bill of sale should include the following basics:
- Parties to the Sale
- Names and Addresses of Seller and Purchaser
- Signatures of Seller and Purchaser
- Description of the Item
- Identification number (i.e. serial number or vehicle ID number)
- Year, make, and model for a vehicle if available
- Condition of the Item
- “Sold As Is” unless you have agreed to something else
- Certifies that the Seller is the legal owner
- Details of the Sale
- Date of Purchase
- Sale Price
- Payment Arrangement (i.e. paid in full, initial down payment, or installments)
- Delivery of the Items
- Available immediately
- Pick up at a later time from a specific address
- Delivery at a later time (additional charge for delivery may apply)
An auto bill of sale may include the following details:
- Make
- Model
- Color
- Vehicle identification number (VIN)
- Model year
- Year of manufacture
- Type of body (2-door, truck, van, etc.)
- Number of cylinders (V6, V8, V12, etc.)
- Odometer reading (mileage)
- License plate number (if your state allows plates to be transferred)
Which states require an auto bill of sale?
We have created a map that gives basic information about whether or not your state requires a bill of sale. In many cases, the law is complex or opaque, so your safest bet is to contact your local DMV and ask for information.
Hover the mouse over your state or the legend to reveal state-specific information. Clicking on your state will open a link to the necessary form, or your relevant state DMV page.
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Does an auto bill of sale need to be notarized?
Some states require that your bill of sale is notarized. The safest way is to check with your local DMV to confirm.
If you are looking for a Bill of Sale that isn’t related to automobiles or vehicles, check out a standard Bill of Sale template.