Selling a car is not as easy as selling other assets. Car owners cannot just accept payment from the buyer and hand over the keys. There are certain other steps that have to be followed in order to make sure the sale actually goes through properly.

Those who might not have ever sold their car to a private owner before may be wondering if they require a bill of sale to do so. This may or may not be required depending on where the sale takes place. Different states may have different regarding all the various different requirements for actually selling a vehicle.

The best advice that can be given about a bill of sale is to always make one if you are the seller. If you are the buyer, always request one. This should be the case regardless of what the individual laws are in a particular state. The reason is the bill of sale reflects a very important document that logs the transaction of the actual sale.

What is a Bill of Sale Document?

Not everyone may be familiar with what a bill of sale actually is or why it might be important. The best way to describe a bill of sale would be that it is an official document that accurately reflects the sale transaction between the two parties. Specific details about the sale are also logged. The seller gains a documented record listing when the document was sold and who it was sold to. Various selections of personal information about the buyer such as name, address, phone number, age, and so on are listed on the bill of sale.

Usually a bill of sale document for a vehicle has this kind of information on it:

• Vehicle year, make and model
• Vehicle VIN
• Seller’s name
• Buyer’s name
• Date and time of the sale
• Sale amount
• Odometer reading

You can write one up yourself or you can find various auto bill of sale templates online. They’re easy to find and print out. You can then just add in your own information.

Does it Need to be Notarized?

In certain states, merely writing a bill of sale is not enough. There may also be a requirement to have the bill of sale notarized. While this is an extra step that comes with a cost, no one can credibly claim the document is a forgery once is has been notarized.

The buyer obviously does not want a lemon. The buyer certain would prefer there was some documented proof of who the car was purchased from and how much money was paid for it. Furthermore, the bill of sale can offer a means of being able to check out the vehicle history report on the car.

Vehicle History Documentation

A vehicle history report is not a bill of sale but it may be something that the buyer will want to see. It might be something that they run themselves if you don’t run it. If you don’t want to be surprised when someone shows up with a vehicle history report, it’s best to order one yourself so that you know what’s on it and then you won’t be forced to lower your price.

The vehicle history reveals who many miles are on the car, how much regular maintenance work was done on the vehicle, and if any major repairs were performed on the car as a result of an accident. The vehicle history can be traced from the VIN number of the car as listed on the bill of sale.

Legal Vehicle Title Transfer

One thing that is necessary to point out here is a bill of sale is not a title transfer. The title of a car is the legal, valid state document that proves who actually owns the car. A title has to be ordered from the DMV. When a car is sold, a title transfer request has to be made and submitted to the state DMV offices.

A bill of sale categorically does not provide legal proof of ownership. It only provides documentation a sale has taken place and you should still have one but just know that is not the same thing as transferring the title and that still does need to take place.

The Bill of Sale Protects You

Anyone who sells a car does not want to have to deal with any lingering problems with a vehicle that has been sold to another person. A bill of sale can serve as legal proof that the car has been sold in case any bottlenecks in the registration process lead to unforeseen and unwanted issues. For example, two weeks after selling a car, a letter from the local police department may come in the mail with a citation enclosed. The citation might state a red light camera recorded the car committing a moving violation. The bill of sale could help get the ticket dismissed once the information is presented in traffic court.

This does bring up another point. Sellers should not give away the original bill of sale before making a copy. The copy should then be stored away with the seller’s personal financial records.

Conclusion

When the time comes to sell a vehicle, check with the local laws in your state. This way, you can be sure to remain in proper compliance with all steps. And once again, even if a bill of sale is not required, make one anyway to be safe.

We have more information here on this website about vehicle bills of sale as well as a downloadable and printable bill of sale here:

Bill of Sale Document for Selling a Car

If you have general questions about this topic, please leave them in the comments area below and we’ll try to help. We’re not lawyers but we might be able to give you a good answer. And then also please share this article with your friends over on Facebook.

If you haven’t sold a car on your own before or even if you’ve sold a few of them, one thing you for sure want to make sure you do is have a car bill of sale document.

If you don’t have the buyer sign one, you could be heading for a mountain of trouble.

What is a Bill of Sale Document?

It’s can help serve as a legal document (sort of) but don’t worry, you don’t have to be a lawyer to make one. Also, there are places to download one yourself for free. What it needs to include is:

• Seller’s name
• Buyer’s name
• VIN of the vehicle
• Vehicle year, make and model
• Odometer reading / disclosure
• Sale amount
• Date of the sale
• Terms of the sale

This document is like a receipt but maybe even better. It states what you’re selling, what the buyer is buying, for how much and on what date. I like to always include that the vehicle is “as is” and does not include a warranty. It’s good to include that the sale is final / no returns – these are your terms of the sale and when the buyer signs it, they’re saying they agree to these terms.

Have a place for them to sign and date it. I like to have a place where they fill in their name, address and phone, too. When you conduct your sale, you should be asking them for their driver’s license. I look at it and will also ask if I can photocopy it or snap a picture of it with my phone for my records. Make sure it’s them and that the address matches up.

Two Documents or Copies

Either have two documents (one for you and one for them) which you both sign or if you have a printer at home with a photocopier, then make a copy of the one document. Make sure you both walk away with a copy.

Ok, So Why Do All This?

Quite simply, it’s protection – for you and them. This is for a number of reasons:

1. What if they want their money back? If they come back later and want their money back (I would bet this happens more often than you’d think), you have this document showing that the car was sold and there are no refunds. This is, of course, subject to local laws – as there may be what is called a “cooling off” period in some local laws where the buyer does have the chance to get their money back. Check with your local DMV for sure.
2. What if they never sign the title / register it? If the buyer of the car never registers the car with your local DMV, then according to your state, you look like the legal owner of the car. It might be abandoned, it might end up at a junk yard (where you might receive a bill for fees) or it might even be used in a crime. The bill of sale document helps to release you from these things. Really, is this not reason enough for you to have one? You might not ever see this person again, so when you have them with you, make sure you’ve both agreed on the terms of the sale. This document helps to prove that you did both agree in person.
3. What if they get in an accident on the way home or before they register it? Just like if they abandon the care or something, having a bill of sale document for the car you just sold helps to make sure you are not liable for that vehicle any longer.

Another Warning: Title Transfer IS Needed!

Please note: the sale might not be legally finalized until a title transfer is done. A bill of sale document does not prove legal ownership of a vehicle.

If possible, go with the buyer to the DMV and get the title transfer done. I know this isn’t probably considered normal but if you’re worried at all, doing this will help you sleep better at night. It’s a business transaction, so do what you need to do.

Where to Get a Bill of Sale Template

A template is something to start with, so a bill of sale template or form is a document which you can start with and edit until it has the information you need for the sale of your vehicle. We have another, good article here on this website about that and it includes a sample template form for you to download and use:

Bill of Sale Document for Selling a Car (cartips.com)

Conclusion

I’m not going to re-hash everything written so far about having a bill of sale since we have another article here on the website about that but I wanted to list some warnings and things to be careful of. No, the bill of sale document isn’t an official document but it certainly can help. It’s something and something is better than nothing. To be sure you’re safely legal and to be sure the transaction has been officially completed, the title transfer must be done because then, your state government is satisfied with the sale and it’s legal.

If you have more questions, please look through other articles here or else post a question in the comments area below. If you liked this article, please share it with your friends and others with your social media accounts so that everyone can find out about it and enjoy it.