A bill of sale is a legal document that records the transfer of ownership when you buy or sell a vehicle privately. Whether you’re purchasing a car, truck, motorcycle, boat, trailer, or RV from an individual seller, this document protects both parties by providing written proof of the transaction, sale price, and vehicle details.
Understanding how to obtain and complete a bill of sale correctly helps you register your vehicle, satisfy state requirements, and avoid disputes later. The process varies by state, but the core steps remain similar across the country.
What Is a Bill of Sale for a Vehicle?
A bill of sale is a written agreement between buyer and seller that documents the transfer of ownership for a vehicle. It typically includes the vehicle identification number, make, model, year, odometer reading, sale price, date of sale, and signatures from both parties, serving as legal proof that money changed hands and ownership transferred on a specific date.
Why You Need a Bill of Sale
Most states require a bill of sale to register a vehicle purchased from a private party. The document proves you legally own the vehicle and establishes the purchase price for calculating sales tax and registration fees.
A bill of sale protects buyers from sellers who might later claim the vehicle wasn’t sold or dispute the agreed price. It also protects sellers by documenting that they transferred ownership and are no longer responsible for tickets, accidents, or other issues involving the vehicle after the sale date.
For vehicles sold without a loan, the bill of sale may be your primary ownership document until you receive a new title. Keep the original in a safe place and provide copies to your insurance company and DMV as required.
State Requirements and Forms
Bill of sale requirements differ significantly by state. Some states provide official forms that must be used, while others accept any written document that contains required information.
Check your state DMV website to determine whether your state requires a specific form or accepts generic bills of sale. Many states offer downloadable PDF forms at no cost, which ensure you include all legally required information.
Certain states require the bill of sale to be notarized, meaning both parties must sign in the presence of a notary public who verifies identities and witnesses the signatures. Notarization typically costs between five and fifteen dollars per signature, though some banks offer free notary services to account holders.
A few states don’t require bills of sale at all if the title is properly signed over. However, creating one anyway provides valuable documentation for both buyer and seller.
Gathering Required Information
Before creating your bill of sale, collect complete and accurate vehicle information. You’ll need the full vehicle identification number, which is a seventeen-character code found on the dashboard near the windshield, on the driver’s door jamb, and on the title.
Record the exact odometer reading at the time of sale. Federal law requires accurate odometer disclosure for most vehicles less than twenty years old, and providing false information carries serious penalties.
You’ll also need the legal names and current addresses of both buyer and seller, the exact sale date, and the purchase price. If the vehicle is a gift, most states still require a bill of sale stating a purchase price of zero dollars or noting the transfer is a gift.
Where to Obtain a Bill of Sale Form
The easiest source for a bill of sale is your state’s department of motor vehicles website. Most states provide free downloadable forms specifically designed to meet their legal requirements.
If your state doesn’t provide an official form, you can use a generic bill of sale template from reputable automotive or legal websites. Ensure any template includes all information required by your state, which you can verify through your DMV.
Office supply stores and some auto parts retailers sell pre-printed bill of sale forms, typically for a few dollars. These generic forms work in states that don’t require specific formats, but always confirm the form meets your state’s requirements before completing it.
Many DMV offices provide blank forms at the counter. Visiting in person allows you to ask questions and ensure you have the correct documents for your transaction.
Creating Your Own Bill of Sale
If your state allows generic bills of sale, you can create one using a word processor. Include a clear title at the top stating “Bill of Sale” or “Vehicle Bill of Sale.”
The document should contain these essential elements in clear, organized sections:
- Full legal names and addresses of buyer and seller
- Complete vehicle description: year, make, model, body style, and color
- Vehicle identification number (VIN)
- Odometer reading with statement that it reflects actual mileage
- Sale price in both numerals and written words
- Sale date
- Statement that the vehicle is sold “as is” or with any warranties
- Signatures and dates from both parties
Leave no blank spaces where information should appear. If a section doesn’t apply, write “N/A” or draw a line through it to prevent someone from adding information later.
Completing the Bill of Sale Correctly
Fill out the form completely and accurately using permanent ink, preferably black or blue. Pencil entries or erasable ink allow alterations that could create legal problems.
Write clearly and legibly so all information can be read easily. Illegible writing may cause your DMV to reject the document, delaying registration.
Double-check the VIN against the vehicle and title before writing it on the bill of sale. A single incorrect character makes the VIN invalid and will prevent registration.
Record the actual odometer reading visible on the dashboard at the time of sale. If the odometer doesn’t work or you suspect it’s been tampered with, most states require you to note this on the bill of sale rather than recording the displayed number as accurate.
Number of Copies Needed
Create at least three copies of the bill of sale. The buyer needs the original for DMV registration, the seller should keep a copy for their records, and having an additional copy provides backup if documents are lost.
Both parties should sign all copies in the same session. This ensures everyone has identical documentation and prevents disputes about what was agreed.
Some states require duplicate or triplicate forms with carbon copies. If your state provides such forms, follow the instructions for distributing copies to the appropriate parties and government offices.
Notarization When Required
If your state requires notarization, both buyer and seller must appear together before a notary public with valid government-issued photo identification. The notary will verify your identities, watch you sign the document, and then apply their official seal and signature.
You can find notaries at banks, credit unions, UPS stores, law offices, real estate offices, and some auto dealerships. Call ahead to confirm availability and ask about fees, which vary by location and state.
Do not sign the bill of sale before appearing before the notary. Notaries must witness the actual signing to provide valid notarization.
Keep notarized documents flat and protected until filed with the DMV, as damage to the notary seal may invalidate the document.
Additional Documents for Registration
The bill of sale alone usually isn’t sufficient to register a vehicle. You’ll typically also need the properly assigned title signed by the seller, a completed application for title and registration, proof of insurance, and payment for applicable taxes and fees.
Some states require a vehicle inspection, emissions test, or VIN verification before registration. Check your DMV’s requirements for your specific vehicle type and situation before visiting the office.
If the seller still has a loan on the vehicle, the lender holds the title. In this situation, you’ll need a bill of sale plus documentation showing the loan has been paid off before the lender releases the title.
Sales Tax Implications
Most states assess sales tax based on the purchase price shown on the bill of sale. Underreporting the sale price to reduce taxes is illegal and can result in penalties, fines, and registration denial.
Tax authorities often know typical values for vehicles and may question suspiciously low purchase prices. Be prepared to provide evidence if you legitimately purchased a vehicle below market value due to condition, needed repairs, or family relationship.
Some states offer sales tax exemptions for gifts between immediate family members. These transfers still require a bill of sale noting the gift relationship and zero-dollar sale price, along with additional affidavits or forms depending on the state.
Special Situations
Selling or buying a vehicle “as is” means the buyer accepts the vehicle in its current condition with no guarantees. Most private party sales are as-is transactions, and the bill of sale should explicitly state this to protect the seller from later claims about mechanical problems or undisclosed issues.
If you’re selling with any warranty or guarantees, spell out the exact terms in writing on the bill of sale. Vague promises cause disputes, so specify what’s covered, for how long, and what remedy the buyer has if problems arise.
For boats, trailers, motorcycles, ATVs, and other titled vehicles, the bill of sale process mirrors automobile transactions. Use forms specific to the vehicle type if your state provides them, or adapt general bills of sale to include hull identification numbers for boats or serial numbers for other equipment.
Out-of-State Purchases
Buying a vehicle in another state requires following both the seller’s state rules for transferring ownership and your home state’s requirements for bringing in an out-of-state vehicle. Contact both state DMVs to understand what documentation you need.
Most states accept out-of-state bills of sale as long as they contain required information. You may need additional inspections or documentation when registering an out-of-state vehicle in your home state.
Consider sales tax carefully with out-of-state purchases. Some states require you to pay sales tax where you register the vehicle, while others credit tax paid in the purchase state, and a few require payment in both locations.
Common Mistakes to Avoid
Never leave sections blank or incomplete on a bill of sale. Empty spaces allow fraudulent additions that could create legal problems for both parties.
Don’t use correction fluid, cross out entries, or make alterations after signing. If you make an error, complete a new form rather than trying to fix mistakes on a signed document.
Verify that all names match exactly as they appear on driver’s licenses and titles. Variations in names can cause DMV processing delays or rejections.
Keep your copy of the bill of sale indefinitely. Even after registration is complete, the document provides proof of what you paid for the vehicle, which matters for tax purposes, insurance claims, and future sale or trade-in calculations.
After the Sale Is Complete
Sellers should keep their copy of the bill of sale until they receive confirmation that the vehicle has been registered in the buyer’s name. This protects you from liability for tickets, accidents, or abandoned vehicle charges if the buyer delays transferring title.
Many states allow sellers to submit a release of liability or notice of transfer to the DMV immediately after sale. This formal notification protects you even if the buyer never registers the vehicle.
Buyers should complete the registration process as quickly as possible. Most states allow only a brief period, often between ten and thirty days, to register a newly purchased vehicle before penalties apply.
Contact your insurance company before or immediately after the sale. Buyers need coverage in place before driving the vehicle, and sellers should remove the vehicle from their policy once ownership transfers.
Moving Forward with Your Vehicle Transaction
Getting a bill of sale requires obtaining the correct form for your state, gathering accurate vehicle and personal information, completing the document carefully with both parties present, and keeping secure copies for your records. Following your state’s specific requirements for content, signatures, and notarization ensures smooth registration and legal protection for everyone involved in the transaction.
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