A bill of sale for a car needs eight things to do its job: the full legal names and addresses of the buyer and seller, a description of the vehicle with its VIN, the odometer reading, the purchase price and how it was paid, the date of sale, an as-is or condition statement, the lien status of the title, and the signatures of both parties (notarized where state law requires it). Hit all eight and the document will hold up at the DMV, protect you in a dispute, and prove what you paid if you ever need to show it.
Full Names and Addresses of Both Parties
Use legal names, not nicknames, and avoid business names unless the vehicle is actually titled to a business. List each person’s current physical address. A P.O. box won’t work for most DMV paperwork, and the address should match what’s on the driver’s license. Phone numbers and email addresses aren’t legally required in most places, but add them anyway. Questions come up after sales more often than people expect.
If the title lists multiple owners (common with married couples), every owner on the title has to appear as a seller and sign the bill of sale. Leaving one off can stall the transfer at the DMV.
Vehicle Description and VIN
Include enough detail to identify the exact car: year, make, model, body style, and color. Something like “2019 Honda Civic sedan, blue” is plenty.
The Vehicle Identification Number does the real work. This 17-character code is unique to every car built since 1981, and it ties the bill of sale to one specific vehicle across every DMV and law enforcement database in the country. Copy it directly from the metal plate on the driver’s side dashboard or the sticker inside the driver’s door jamb. Don’t transcribe it from memory or from an old listing. A single wrong digit can make the document useless for registration. Check the VIN against the title before anyone signs.
Odometer Reading
Federal law requires the seller to provide a written odometer disclosure whenever a vehicle changes hands. The disclosure must state the cumulative mileage shown on the odometer at the time of sale. If the seller knows the reading is inaccurate (because the odometer was replaced, rolled back, or malfunctioned), the disclosure must say the actual mileage is unknown.1Office of the Law Revision Counsel. 49 USC 32705 – Disclosure Requirements on Transfer of Motor Vehicles
A vehicle cannot be titled in a new state unless the application includes a signed, dated mileage statement from the seller. Many states fold this disclosure into the title assignment itself, but when you’re drafting a standalone bill of sale, add the odometer reading and a line stating that the reading is accurate (or that the true mileage is unknown).
Which Vehicles Are Exempt
Not every car needs an odometer disclosure. For model year 2011 and newer vehicles, the requirement applies for the first 20 years of the vehicle’s life. Model year 2010 and older vehicles fell under the previous 10-year rule and are already exempt.2NHTSA. Consumer Alert: Changes to Odometer Disclosure Requirements A 2008 Camry sold in 2026 doesn’t need the statement. A 2015 Camry still does.
Penalties for Odometer Fraud
Fudging the mileage on a bill of sale is not a minor paperwork issue. Federal civil penalties reach up to $10,000 per vehicle, with a cap of $1,000,000 for a related series of violations. Criminal penalties for knowingly tampering with an odometer or making a false disclosure include up to three years in federal prison and fines up to $250,000. Corporate officers who authorize or participate in the fraud face individual liability on top of any penalties against the business.3Office of the Law Revision Counsel. 49 USC 32709 – Penalties
Purchase Price and Payment Details
Write the sale price in both numbers and words: “$8,500 (eight thousand five hundred dollars).” If the figure gets smudged or disputed, the written version backs it up. The DMV uses this number to calculate sales tax in most states, so accuracy cuts both ways. Understate the price and you risk tax fraud charges. Overstate it and the buyer overpays.
Specify how payment was made: cash, cashier’s check, personal check, electronic transfer, or some combination. If the buyer is making installment payments, spell out the schedule, the amounts, and what happens if a payment is missed. For a gift, write “$0” as the price and add a line stating the vehicle is being transferred as a gift. Many states still charge sales tax on gifts based on fair market value, but having “gift” documented ensures the DMV processes it under the correct rules.
One note on sales tax. Most states calculate it from the price on the bill of sale, but some compare that price against the vehicle’s fair market value and tax whichever is higher. That rule exists to catch people who write “$1” to dodge taxes. Write the real price.
Date of Sale
The sale date does more work than people realize. It marks when liability shifts from seller to buyer. If the car is in an accident or picks up a parking ticket the day after that date, the bill of sale is the seller’s evidence the car was no longer theirs. The date also starts the clock on the buyer’s registration deadline, which ranges from a few days to a month or more depending on the state. Use the actual date the car and money changed hands.
As-Is Clause and Condition Disclosure
Nearly every private vehicle sale happens “as is,” meaning the buyer accepts the car in its current condition and the seller makes no promises about reliability or fitness. An explicit as-is statement protects the seller from later claims about defects the buyer discovers. Standard language reads something like: “This vehicle is sold as-is, with no warranties expressed or implied.”
As-is doesn’t protect a seller who actively conceals a known defect. If you know the transmission slips or the frame has flood damage, disclose it on the bill of sale. Some states impose specific disclosure obligations for known defects, salvage history, or flood damage. Noting mechanical issues in writing creates a clear record that the buyer was informed before paying.
Lien Status
This is where private sales most often go wrong. If the seller still owes money on the car, a lien exists on the title and the lender has a legal claim on the vehicle. Buying a car with an outstanding lien can leave the buyer with a vehicle they can’t register, or one the lender can repossess even though the buyer paid in full.
The bill of sale should state whether any liens exist. If the title is clean, a line reading “seller certifies that the vehicle is free of all liens and encumbrances” gives the buyer written proof of that representation. If a lien does exist, the bill of sale should document how it will be satisfied, typically through the sale proceeds at closing, with the lender releasing the title directly to the buyer afterward. Buyers should verify lien status independently through a VIN check or by contacting the lender before any money changes hands.
Signatures, Notarization, and Witnesses
Both parties must sign and date the bill of sale. Without signatures, the document describes a transaction that, on paper, never happened.
Notarization rules vary by state. A handful require a notarized bill of sale or notarized title assignment before the DMV will process the transfer. Others don’t require it at all. Even where it’s optional, notarization adds a layer of fraud protection, because the notary verifies the signers’ identities, which makes it much harder for someone to later deny signing. Many banks offer free notary services to account holders.
Some states also require or recommend a witness signature. Where a witness is used, they should print their full name, sign, and date. Pick someone not directly involved in the transaction. Using the buyer’s spouse as a witness could be challenged in some jurisdictions. Check your state DMV’s website for specific requirements before signing.
The Bill of Sale Is Not the Title
One boundary worth stating plainly: a bill of sale proves a transaction happened; the title proves ownership. The buyer needs both. The seller has to sign over the vehicle’s certificate of title. The bill of sale alone will not let the buyer register the car or get new plates in most states.
If the seller has lost the original title, they need to apply for a duplicate through their state’s DMV before the sale can close. Never buy a car from a private seller who promises to “send the title later.” Once the money is gone and the car has been driven away, the buyer has very little leverage to get that title, and without it may be stuck with a vehicle they legally can’t drive.
What Each Side Does After Signing
Sellers should file a notice of sale or vehicle transfer notification with their state’s DMV as soon as possible. That filing is how you formally disconnect yourself from the vehicle. Until it’s on file, you can be held responsible for parking tickets, toll violations, and accidents involving the car. Most states accept these notifications online. Keep your copy of the signed bill of sale indefinitely as proof of when ownership transferred.
Buyers should bring the signed title, the bill of sale, and proof of insurance to the local DMV to apply for a new title and registration. Every state sets a deadline for this transfer, and they vary widely, from a handful of days in some states to 30 days or more in others. Missing the deadline usually means late fees, and driving an unregistered vehicle can draw a citation. Title transfer fees generally fall in the $15 to $50 range, with sales tax calculated from the price on the bill of sale. Keep that bill of sale with your vehicle records permanently. If you ever need to prove what you paid, for an insurance claim, a tax question, or a future resale, this is your primary evidence.