To write a bill of sale for a vehicle, you need a dated document that names the buyer and seller, describes the vehicle by VIN, states the price, records the odometer reading, spells out that the sale is “as is,” and carries both signatures. Get those pieces right and the DMV, the tax office, and a future dispute all have what they need. Get them wrong and you can lose your title transfer, your tax exemption, or your legal distance from a car you no longer own.
The Core Elements Every Bill of Sale Needs
Some state motor vehicle agencies publish their own fill-in templates, and those are worth using when available. Whether you use one or draft your own, the document should contain:
- Full legal names, mailing addresses, and phone numbers for the buyer and the seller. If either side is a business, name the entity and the person signing for it.
- A full vehicle description: year, make, model, trim, body style, and color. Include the Vehicle Identification Number, and check it against the dashboard plate and the door jamb sticker rather than trusting what the seller wrote down.
- The purchase price in both figures and words. If the car is a trade or a gift, say so explicitly instead of listing a number.
- The payment method: cash, cashier’s check, personal check, or electronic transfer.
- The exact calendar date of the sale.
- Signatures from both parties, with printed names alongside.
Many DMV templates also leave space for the license plate number and the title certificate number. Adding them costs nothing and gives both sides more to point to if something goes wrong later.
Record the Odometer Reading
Federal law requires the seller to record the mileage at the time of sale and certify it is accurate to the best of their knowledge.1eCFR. 49 CFR 580.5 – Disclosure of Odometer Information Record whole miles, not tenths. If the seller knows the odometer has rolled past its mechanical limit or doesn’t reflect actual mileage, that has to be disclosed too. Lying about the number is a federal offense.
The disclosure usually goes on the title certificate, but it can also sit on the bill of sale or a separate form. Both parties sign it, and both keep a copy.2eCFR. 49 CFR 580.5 – Disclosure of Odometer Information
Some vehicles are exempt. Trailers and other non-self-propelled vehicles are exempt, as are vehicles rated above 16,000 pounds gross weight. Any vehicle from model year 2010 or earlier is already exempt; vehicles from model year 2011 onward become exempt once they are at least 20 years old. In 2026 that means a 2006 model is exempt but a 2011 won’t be until 2031.3eCFR. 49 CFR 580.17 – Exemptions Even when the law doesn’t require it, writing the mileage on your bill of sale protects both sides later.
Write a Clear “As-Is” Clause
Most private sales are “as is.” The buyer takes the car in its current condition and the seller promises nothing about what happens next. The clause that establishes this has to be unambiguous, because vague language won’t hold up.
Under the Uniform Commercial Code, which most states have adopted, phrases such as “as is” or “with all faults” exclude implied warranties when they clearly tell the buyer that no warranty exists.4Legal Information Institute. UCC 2-316 – Exclusion or Modification of Warranties Your bill of sale should state plainly that the vehicle is sold in its present condition, that the seller gives no warranty of any kind, and that the buyer is responsible for any repairs after the sale date. Keep the wording blunt.
The FTC’s Buyers Guide window-sticker rule, which disclaims or confirms warranties on used cars, applies only to dealers, not private sellers.5Federal Trade Commission. Buying a Used Car From a Dealer In a private deal the bill of sale is what sets the warranty terms, which is why the as-is language matters so much.
Verify the Title Before Signing
This step is the one most often skipped, and the one most likely to cost real money. If the car has an outstanding loan, the lender holds a lien on the title. That lien follows the vehicle, not the borrower. A buyer who pays cash for a car with an active lien can lose both the car and the money if the original borrower defaults, because the lender can repossess from whoever holds the vehicle.
Before anyone signs, the buyer should check the title status independently. Run the VIN, taken from the dashboard or door jamb rather than from a text message, through the National Motor Vehicle Title Information System through an approved provider, or use your state’s DMV title-status portal if one exists. A paid vehicle history report can also flag liens, salvage brands, and flood damage. If a lienholder shows up, the seller needs to pay off the loan and get a lien release before the deal can close cleanly.
In a growing number of states the DMV won’t issue a paper title until liens are cleared, so the seller physically can’t hand you one. In that situation, get written confirmation from the DMV showing no active liens before money changes hands.
Signing the Document
Both parties sign in ink on the date the sale happens, and both print their names next to their signatures. Make at least two original copies so each person walks away with one.
Electronic Signatures
The federal E-SIGN Act generally keeps a contract from being denied legal effect just because it was signed electronically.6Office of the Law Revision Counsel. 15 USC 7001 – General Rule of Validity NHTSA also updated its odometer rules in 2019 to allow states to adopt electronic odometer disclosure systems.7U.S. Department of Transportation. Odometer Disclosure Requirements Your state DMV may still demand a wet-ink signature on the title or bill of sale to actually process a transfer, so check with your local office before going fully digital.
Notarization
A handful of states require the seller’s signature, and sometimes the buyer’s, to be notarized before the DMV will process a transfer. States with some form of notarization requirement include Arizona, Kentucky, Louisiana, Montana, North Carolina, Ohio, Oklahoma, Pennsylvania, and Wyoming, among others. Even where it isn’t required, notarization adds fraud protection, since the notary verifies identities and witnesses the signatures. On an expensive vehicle or a deal with a stranger, it’s cheap insurance.
After the Sale: What the Seller Still Needs to Do
The bill of sale proves the transaction happened, but it doesn’t erase your name from the state’s vehicle record. Until the buyer completes the title transfer, you’re still the registered owner in most state databases. Toll violations, red-light tickets, or an accident caused by the new owner can come back to you.
Most states offer a Notice of Transfer or Release of Liability form that sellers file with the DMV to cut that connection. Deadlines vary, and some states give you as few as five days, so file it right after the sale. The notice doesn’t transfer ownership on its own; only the buyer’s title application does that. What it creates is a dated record showing you’re no longer responsible for the vehicle.
Keep your signed copy of the bill of sale, any lien release paperwork, and photos of the car’s condition and odometer on the day of sale. Sellers who skip this and trust the buyer to handle everything are the ones later arguing with a collections agency about a toll from three states away.
After the Sale: What the Buyer Needs to Do
For the buyer, the bill of sale is the document that unlocks the DMV. You’ll need it with the signed title to apply for a new title in your name. Most states set a deadline for completing the transfer, commonly 10 to 45 days from the purchase date, and missing it means late fees on top of the standard transfer fee.
Registration comes next. You can’t legally drive on public roads without valid registration and plates, and you generally can’t register without the title first. Proof of insurance is required at registration in every state.
Sales tax on private purchases is assessed in nearly every state, and it’s usually calculated from the price on your bill of sale. This tempts some people to write down a lower number. Don’t. State revenue agencies compare the reported price against fair market value, and when the gap is too wide they’ll tax the market value anyway or open an investigation. Penalties for intentional underreporting run from back taxes with interest to criminal fraud charges in serious cases. Write what you actually paid.
Genuine gifts between qualifying family members are exempt from sales tax in many states. Qualifying relationships and required paperwork vary, but expect to show proof of the relationship and sign a statement, sometimes notarized, confirming no money changed hands. Writing “$1” on a bill of sale for a car you actually paid thousands for isn’t a gift, and tax agencies know the difference.