To write a bill of sale for a car, put the buyer’s and seller’s full names and addresses, a complete description of the vehicle with its VIN, the odometer reading, the sale price, the date, any lien information, an “as-is” statement, the payment method, and both signatures on a single document. In many states you’ll need it to register the car and transfer the title; in every state it’s the receipt that proves the deal happened.
A bill of sale is not a title. The title is the state-issued proof of ownership. The bill of sale is the record of the transaction.
What the Document Has to Contain
A bill of sale missing key details can cause problems at the DMV or in a later dispute. Every car bill of sale should include:
- Full legal names and current mailing addresses for the buyer and the seller.
- A vehicle description: year, make, model, trim level, body style, and color.
- The Vehicle Identification Number, the 17-character code stamped on the dashboard and door frame. Double-check every digit. A single wrong character can derail the title transfer.
- The exact odometer reading at the time of sale. Federal law requires this.
- The sale price, meaning the actual amount the buyer paid. This figure typically determines the sales tax the buyer owes at registration.
- The date of sale, which establishes when ownership changed hands and matters for liability.
- The certificate of title number, and where applicable the current plate number and issuing state.
- A lien disclosure: whether any outstanding loan or lien exists on the vehicle, with the lienholder’s name and remaining balance. A buyer who skips this can end up with a car a bank still has a legal claim to.
- The payment method: cash, cashier’s check, personal check, or electronic transfer. Recording this heads off later disputes about whether payment was actually made.
- Signatures and dates from both buyer and seller.
Use the same name that appears on each person’s government-issued ID. Nicknames or abbreviations can cause complications at the DMV.
Add an “As-Is” Clause
Most private car sales happen without any warranty, and the bill of sale should say so plainly. An “as-is” statement means the buyer accepts the vehicle in its current condition, with no promise from the seller that anything works or will keep working. Without this language, a buyer might later argue that the seller implicitly guaranteed the car was in good shape.
The clause doesn’t need to be elaborate. Something like “The vehicle is sold in its present condition, with no warranties expressed or implied” does the job. If the seller is offering any warranty, which is rare in private sales, spell out exactly what’s covered and for how long. Private sellers are generally not subject to the FTC’s Used Car Rule that requires dealers to post a Buyers Guide, which makes clear written terms in a private sale more important, not less.
Record the Odometer Reading
Federal law requires anyone transferring ownership of a motor vehicle to give the buyer a written statement of the cumulative mileage on the odometer. If the seller knows the odometer reading doesn’t reflect the actual distance the vehicle has traveled, because the odometer was replaced, rolled back, or malfunctioned, the disclosure must say the actual mileage is unknown.
This isn’t optional. The statute applies to virtually all vehicle transfers, and a false odometer statement is a federal violation carrying civil and criminal penalties. Most states build the disclosure into the title transfer form itself, but putting the odometer reading on the bill of sale adds another layer of documentation that protects the buyer.
Signatures and Notarization
Both parties must sign and date the bill of sale. The signatures confirm agreement to the terms and create the evidentiary record that the transaction occurred.
Some states require notarization of the bill of sale, the title, or both before the DMV will process a transfer. A notary public verifies each signer’s identity, watches them sign, and stamps the document with an official seal. Whether your state requires it varies, so check with your local DMV before you meet to finalize the sale. Scheduling the notary in advance saves a second trip. Even where notarization isn’t mandatory, it adds a layer of fraud protection that can be worth the small fee.
Once the document is signed and notarized if required, make at least two copies. The buyer keeps the original, the seller keeps a copy, and any lienholder may need one as well.
Where to Get a Template
You don’t need to draft a bill of sale from scratch. Many state DMV websites offer free, downloadable bill of sale forms tailored to that state’s requirements. Starting with your state’s official form is the safest approach because it’s designed to include what the DMV expects to see at title transfer.
If your state doesn’t provide a dedicated form, general templates are widely available online. The important thing is that the template covers everything above, especially the VIN, odometer reading, sale price, lien disclosure, and “as-is” language. A template that only asks for names, a price, and a signature is leaving out information that can matter later.
Verify Identity and Vehicle History Before You Sign
Before filling anything out, both parties should confirm they’re dealing with who they think they are. The buyer should compare the seller’s driver’s license to the name on the vehicle title. If those don’t match, something is wrong: the seller may not actually own the car, or the title may not have been properly transferred from a previous owner. The seller should check the buyer’s ID and watch the buyer sign the title in person. That prevents situations where the car ends up unregistered and generates tickets traced back to the seller’s address.
Buyers should also confirm that the VIN on the bill of sale matches both the title and the physical VIN stamped on the vehicle. Mismatched VINs can signal a stolen vehicle or a title that belongs to a different car. Running the VIN through the National Motor Vehicle Title Information System (NMVTIS), a federal database designed to protect consumers from fraud and unsafe vehicles, can surface title brands like “salvage” or “flood,” previous reporting to junkyards, and recent odometer readings on file. NMVTIS won’t always show outstanding liens, so requesting the actual state title record is still worthwhile.
What the Buyer Does After the Sale
The buyer takes the bill of sale, the signed title, and any required state forms to the DMV to register the vehicle and transfer the title. Most states impose a deadline, often 30 days or less from the date of sale. Missing it typically means late fees, and driving an unregistered vehicle in the meantime can draw a citation.
Nearly all states charge sales tax on private vehicle purchases, collected at registration. The tax is calculated from the sale price shown on the bill of sale. Understating the price to reduce the tax is fraud, and many states will assess the tax using the vehicle’s fair market value if the declared price looks unreasonably low.
What the Seller Does After the Sale
The seller should file a notice of transfer or release of liability with the state DMV as soon as possible after the sale. This filing separates the seller from the vehicle in state records, so that parking tickets, toll violations, or accidents involving the car afterward don’t get traced back to the seller. Some states set a specific deadline. California, for example, requires it within five calendar days. If a seller skips this step and the buyer never registers the car, the seller can spend months dealing with someone else’s tickets and legal problems.
The seller should also remove their license plates before handing over the car, unless the state allows plates to transfer with the vehicle. In most states, plates belong to the registered owner, not the car.
How Long to Keep the Bill of Sale
Both parties should keep their copy for at least three years, which aligns with the IRS’s general statute of limitations for auditing tax returns. The bill of sale is typically the first document you’ll be asked for if you need to contest a ticket, prove when ownership transferred, or resolve a dispute about the sale price. For sellers especially, keeping the bill of sale alongside the release of liability confirmation is cheap insurance against problems that can surface long after the car changes hands.