Car Bill of Sale: How to Buy or Sell a Used Car Safely in 2026
Summer is peak season for used-car deals. Recent graduates need their first car, families shop for a second vehicle, and private sellers list cars while the market is busy. Whether you’re buying or selling, one simple document protects both sides of the deal: the car bill of sale.
This guide explains what a bill of sale is, what to include, the state laws to watch, and how to buy or sell a used car safely in 2026.
What is a car bill of sale?
A car bill of sale is a written record of a vehicle sale. It names the buyer and the seller, describes the vehicle, states the purchase price, and records the date of the transaction. Once both parties sign it, the bill serves as proof that ownership has changed hands.
Think of it as a receipt with legal weight. For the seller, the document shows the car was sold on a certain date. For the buyer, it proves how much was paid and supports the title transfer and registration at the DMV. The same kind of bill of sale is also used for other property, such as boats, trailers, and even horses, but a vehicle bill is the most common.
Why a bill of sale matters
A handshake isn’t enough when thousands of dollars and a vehicle title are on the line. A clear bill of sale helps in several ways:
- It proves the sale happened. The date and signatures show exactly when ownership transferred from one person to another.
- It protects the seller. If the car is in an incident after the sale, the bill shows the seller no longer owns it and isn’t liable.
- It supports the buyer’s paperwork. The DMV often asks for a bill of sale to register the vehicle and calculate sales tax.
- It records the odometer reading. Federal and state law require an odometer disclosure, and the bill is a common place to capture it.
- It can matter at tax time. If the vehicle is sold for a profit or given as a gift, the document provides evidence of the transaction and the purchase price.
Is a bill of sale required by law?
Requirements depend on your state laws. Only 16 states strictly require a bill of sale by law to transfer ownership, but it’s considered best practice in all states. A bill of sale must accurately establish the chain of ownership, and it’s generally required for vehicle transactions to document the transfer legally.
Even where it isn’t mandatory, the DMV may still ask for one to register the car or to confirm the purchase price for sales tax. When in doubt, create a bill of sale anyway.
What to include in a vehicle bill of sale
A strong sale form leaves no detail to memory. A complete bill of sale for car transactions should include:
- Buyer and seller details: the full legal names and the address of each party.
- Vehicle details: make, model, year, color, and body type.
- The vehicle identification number (VIN): the unique code that identifies the car.
- Odometer reading: the exact mileage on the day of sale.
- Purchase price and payment method: the agreed amount and how it was paid.
- Sale date: the day the transaction is completed.
- Condition statement: an “as is” clause, if the sale has no warranties.
- Signatures: signed by both parties, with space for a notary public if your state requires one.
The vehicle identification number (VIN)
The Vehicle Identification Number (VIN) is a 17-character unique alphanumeric ID that identifies the specific vehicle and is essential for transferring the title. You can find the VIN on the lower corner of the windshield on the driver’s side, on the door frame, or on the title and registration. Make sure the VIN on the car matches the title and the bill of sale before money changes hands.
Odometer reading and disclosure
Federal and state law require that the odometer reading be stated in connection with the transfer of ownership. Vehicles from model year 2011 or newer need an odometer disclosure statement each time they’re sold, and they stay covered for 20 years. Failure to provide accurate information can result in fines or other penalties, so never guess or round the mileage. You can read the official rules on the NHTSA odometer disclosure page.
“As is” sales and warranties
Most private sales are “as is.” An “as is” statement indicates the buyer accepts the vehicle in its current condition with no warranties, which limits the seller’s liability. Recording the condition in writing also protects the seller from future claims about defects. If the buyer pays over time, use a bill of sale that includes a promissory note to set out the loan terms.
Does a car bill of sale need to be notarized?
In most states, a car bill of sale doesn’t need to be notarized. In some states, a bill of sale must be notarized for vehicle transactions, including Louisiana, Montana, West Virginia, and New Hampshire. A few others, such as Wyoming and Kentucky, require the seller’s signature on the title to be notarized rather than the bill itself.
Because rules change and can depend on the purchase price or the type of transaction, confirm the current requirement with your DMV. When notarization is required, sign the document in front of a notary public, who will verify your identity and witness the signatures.
How to buy a used car safely
Follow these steps to protect yourself as a buyer:
- Check the vehicle history. Run the VIN through the National Motor Vehicle Title Information System to see title status, registration history, odometer readings, and brands such as salvage or flood damage.
- Look up open recalls. Enter the VIN on the NHTSA recall site and ask the seller to fix any issues before you buy.
- Confirm there’s no lien. Make sure the seller’s name matches the title and that no lender holds a lien on the car.
- Inspect the vehicle. A history report isn’t a substitute for a hands-on inspection by a trusted mechanic.
- Complete the bill of sale. Use a vehicle bill of sale with a built-in odometer statement, fill in every field, and have both parties sign.
- Transfer the title and register the car. Take your signed documents to the DMV within your state’s deadline.
The Federal Trade Commission offers more guidance for used-car shoppers on its used cars resource page.
How to sell a used car safely
If you’re the seller, these steps help you close the deal and limit your liability:
- Gather your documents, including the title, registration, and any service records.
- Set an honest price and describe the vehicle’s condition accurately.
- Take payment safely. A verified bank payment is safer than a personal check.
- Record the true odometer reading. Never guess the mileage.
- Sign the bill of sale and the title. Give the buyer a signed copy. If you can’t sign in person, a power of attorney to register or transfer a vehicle title lets someone act for you.
- Tell your state and your insurer. File a release of liability with the DMV if your state offers one, and cancel or move your insurance.
Transferring the title at the DMV
A bill of sale is a receipt of the transaction, but a title transfer is still required to officially change legal ownership at the DMV. Bring the signed title, the bill of sale, and proof of identity, and pay any title and registration fees. The buyer usually has a set number of days to complete the transfer, so don’t delay.
Keep copies and your records
Both the buyer and seller should retain a signed copy of the bill of sale for their personal records. Keep a paper copy and a digital one. These sale records help you prove the date of ownership, settle tax questions, and resolve any future dispute.
A quick checklist
Before closing the deal, make sure:
- The bill of sale is complete, with no blank fields.
- The VIN matches the car, the title, and the document.
- The odometer reading is exact.
- The purchase price and payment method are written down.
- Both parties signed, and the bill is notarized if the state requires it.
- Each party kept a copy.
- The buyer has a plan to transfer the title at the DMV.
Frequently asked questions
Can I handwrite a bill of sale for a vehicle?
Yes. A handwritten bill of sale is valid as long as it includes the required details: the names and addresses of both parties, the vehicle’s make, model, year, and VIN, the purchase price, the odometer reading, the date, and both signatures. A ready-made sale form simply makes sure nothing is missed.
How do I write a proper bill of sale for a car?
List the buyer and seller, describe the vehicle and its body type, record the VIN, the purchase price, the payment method, and the odometer reading, add an “as is” line if there are no warranties, and have both parties sign and date it. Give each party a copy and use it to complete the title transfer.
Is a bill of sale required in Oregon?
Oregon doesn’t strictly require a separate bill of sale to transfer a title, since the signed title records the sale. Even so, a bill of sale is recommended as proof of the transaction, and the Oregon DMV provides a form you can use. Check the latest rules with the Oregon DMV.
Do you need a bill of sale in Kansas?
Kansas often asks for a bill of sale in private sales, frequently using its own form, to confirm the purchase price for sales tax and to document the transfer. Confirm the current requirement with the Kansas Department of Revenue or your local DMV.
Where to find the right form
A few minutes of paperwork can save you from tax headaches, liability claims, and ownership disputes. Starting with a complete, state-aware form makes the whole sale smoother.
US Legal Forms offers ready-to-use vehicle documents, including:
- A bill of sale of automobile and odometer statement for a standard cash sale
- A bill of sale that includes an odometer statement and a promissory note when the buyer pays over time
- A power of attorney to register or transfer a vehicle title
These forms are available for every state. Choose the one that fits your sale, complete it, and notarize it if needed, so you can buy or sell with confidence.
